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Youngsters set to take over Indonesian housing market
It is estimated that around 63.4 percent of potential Indonesian house buyers are millennials or members of Gen-Z.
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Blue sky is seen above the usually polluted Jakarta on July 2, 2021, after several days of residents restricting themselves from leaving their homes for fear of contracting the delta variant of COVID-19 and a day before the implementation of emergency restrictions on community activities, from July 3 to 20. (AFP/BAY ISMOYO)
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mid ongoing recovery in the domestic-property industry, younger generations are expected to take over the majority of the housing-market share; but reduced buying power means government assistance is needed to assist this segment.
In a virtual presentation conducted on Aug. 26, housing consultancy-firm Indonesia Property Watch (IPW) estimated that more than 63.4 percent of potential house buyers are millennials or members of Generation-Z (Gen-Z).
Statistics Indonesia’s (BPS) latest census shows that millennials and Gen-Z comprise 25.87 percent and 27.94 percent of the total citizen population, respectively.
BPS categorizes millennials as those born between 1981 to 1996 -- Gen-Z, between 1997 to 2012.
“Developers should take note that, although the middle- and upper-income-bracket market will still exist, the ‘fat market’ will shift to the middle-income bracket [...] because most of the supply has not yet adapted to the demand,” IPW CEO Ali Tranghanda said.
Read also: Govt extends VAT cut on new homes but reduces amount
As a result, the type of houses that will thrive in the market will be within the middle range of Rp 300 million (US$20,189) to Rp 500 million, a range considered affordable and to offer good quality, Ali continued.
