Millennials in Indonesia are placing significant importance on the idea of owning a home, considering it a crucial element for their lives. According to the recently released Indonesia Millennial Report 2024, a collaborative effort between IDN Media and 99 Group, a rapidly growing property platform in Southeast Asia, millennials view homeownership not only as a financial milestone but also as a way to build strong connections within their communities.
The report sheds light on the changing landscape of property trends among millennials and Gen Z. It indicates a growing desire among millennials to own homes, with many considering it a key indicator of financial stability and a long-term investment. The data, collected from January 2022 to June 2023, reveals a rising trend in property searches among millennials, surpassing the engagement seen among Gen Z.
Majority of millennials express their intent to buy properties for housing purposes, accounting for 63.1%. However, financial motivations play a significant role, with around 18.5% viewing properties as a viable investment. Additionally, 9.2% are seeking properties as agents or co-brokers, while 7.7% are looking for properties for business purposes.
In summary, data compiled by 99 Group suggests that millennials currently possess substantial purchasing power and are more inclined to consider properties with higher price points compared to Gen Z. This shift in preferences may be attributed to the financial stability commonly associated with the older generation.
Breaking down the preferences further, millennials are showing a strong inclination towards landed houses, with 64.6% favoring this type of property. Other preferences include 14.3% for land, 9.4% for apartments, and 8.5% for shop-houses.
When it comes to location, major cities in Indonesia are the hotspots for millennials in their property searches. Jakarta leads the list with 61.4%, followed by Bandung at 11.3%, and Surabaya at 10.8%.
Considering property size, a significant portion of millennials is searching for properties with an area of less than 100 square meters. Millennials are also quite flexible when it comes to building conditions, showing interest in both new and used properties.
Furthermore, based on the Flash Report Resale Price Index from 99 Group, property prices in Indonesia have exhibited a steady increase since January 2020. Overall, between January 2020 and July 2023, the Resale Price Index for Indonesia has seen a notable rise of 10.5%.
While this overall trend is evident, different cities display varying rates of growth. Medan, for instance, experienced a substantial increase of 18.5%, followed by Bekasi at 15.6%, and Tangerang at 14.9%.
Conversely, some cities recorded more moderate growth rates. Surakarta saw an increase of 3.5%, Denpasar at 4.3%, and Surabaya at 5.3%. This diversity in growth rates reflects the dynamic nature of Indonesia’s property market across different regions and city centers.