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Jakarta Post

Analysis: Creating more demand in housing market

  • Mufti Faisal Hakim


Jakarta   /   Wed, June 12 2019   /  01:26 am

On every continent, housing development is considered one of the hottest sectors in the economy. We also should never forget that it was a crash in housing mortgage performance that led the financial world into chaos. Residential property came up as a very sensitive issue, both as social and as an investment commodity. Besides the effect of population growth, demand was the other strong factor. Every child grows up, finishes school and secures a job before they need a place to live independently. The simple analogy in the previous sentence illustrates the inelasticity in housing demand: Everyone needs education, every family needs a house as well.The housing market in Indonesia can be so attractive due to its demography. Looking at studies and global projections, the population is not expected to decrease any time soon and growth in the birth rate might not slow down until 2030. Statisti...