Research: Tapak House Is The Type Most Wanted By Gen Z And Millennials

Illustration. (Photo: Doc. Antara)

JAKARTA - Research results from a real estate technology company, 99 Groups say that landed houses or single houses are the type of property that Gen Z and Millennials are most looking for.

Through research conducted in the period 2022 to the first semester of 2023, Head of Research 99 Group Indonesia Marisa Jaya said that Gen Z and Millennials' interest in the property sector was quite high and potential.

"Actually, Gen Z and Millennials have the same pattern, we see that their interest is still very high in landed houses," Marisa said at the Macroprudential Liquidity Policy Seminar for Housing Sector Credit/Financing in Jakarta, quoted from Antara, Thursday 5 October.

For Gen Z, interest in landed houses is 64.4 percent, land properties are 13.6 percent, and apartments with an interest rate of only 9.0 percent. Then for Millennials, interest in landed house properties was recorded at 64.5 percent, land at 14.3 percent and apartments at 9.4 percent higher.

Then Gen Z and Millennials also mostly choose to buy houses with a price range of Rp. 1 billion to Rp. 3 billion. Marisa detailed that 34.2 percent of Gen Z chose property for Rp. 1 billion to Rp. billion. Then 30 percent prefer the price of Rp. 400 million to Rp. 1 billion.

Millennials 36.3 percent have a pricing price of IDR 1 billion to 3 billion, and 31.7 percent of them choose a price of IDR 400 million to IDR 1 billion.

Marisa explained that property locations are currently still centered in big cities in Indonesia, especially Jakarta with 61.0 percent being Gen Z's favorite, and 64.9 percent for Millennials.

"For the most favorite locations today, it is recorded that it is still very concentrated in big cities, including Jakarta, Bandung, Semarang, Denpasar, Surabaya, Medan and other big cities," Marisa explained.

Marisa said Gen Z and Millennials have so far become potential markets for the property sector. This is reflected in the significant increase in house purchases in the first half of this year.

In terms of building area, 25.8 percent of Gen Z and 21.4 percent of Millennials have a preference for a building area of 30-60 square meters (m2).

"For reference to the area of the building itself, Millennials and Gen Z both like it in the 60-100m2 area. Of course this is related to the price they can afford," said Marisa.

Therefore, Bank Indonesia (BI) implements a Macroprudential Liquidity Incentive (KLM) policy which is also directed to encourage the housing sector.

In the housing sector, BI Senior Deputy Governor Destry Damayanti explained that the performance of Home Ownership Loans (KPR) showed positive growth reaching 10 percent on an annual basis (yoy) as of August 2023. This figure increased compared to the end of 2022 which was recorded at 8.17 percent.

The largest market share of mortgages comes from middle-type houses or type 21-70, while the largest contribution to growth comes from houses of type >70.

KPR is the highest contributor to this growth rate, with the younger generation becoming the motor of consumption credit growth, which is growing on an annual basis by 17.18 percent as of August 2023. In the midst of the downward trend in consumption credit in other generations.