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Jakarta home rentals surge, buying falls in Q1 2024
More and more Jakartans were opting to rent houses in the first quarter of the year amid high home prices, interest rates and inflation, according to several leading property consultancies.
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Visitors look at a scale model of a
housing complex on April 24, 2024, at an exhibition in
Tangerang, Banten. The government is considering creating a standalone ministry for housing issues,
including to address what it says is a backlog of 12.7
million homes. (Antara/Muhammad Iqbal)
M
ore people in Jakarta are inclined to rent a house instead of purchasing their own, as they have found that homeownership is becoming less affordable over time.
Steve Sudijanto, investment director at Global Asset Management, said on Monday that not all Indonesian consumers wanted to rent a house but some had to take this option due to certain considerations.
"Currently, fresh graduates make incomes that barely surpass the minimum wage. For instance, if they earn Rp 7 million [US$434], they need around Rp 5 million to survive each month, so they choose to live near their [workplace]," Steve told The Jakarta Post on Monday.
"Areas like the Sudirman Central Business District [SCBD] or Kuningan are already expensive, so many of them opt to rent instead of buying,” he added.
Steve also noted that the younger generation leaned toward impulsive buying, especially in terms of travel and lifestyle, and did not prioritize homeownership.
However, it was better to own rather than rent a house during times of high inflation, he said.
Read also: Owning a house remains challenging for millennials
