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View all search resultsYoungsters set to take over Indonesian housing market: IPW
It is estimated that around 63.4 percent of potential Indonesian house buyers are millennials or members of Gen-Z.
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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.
