Indonesia with its mostly young population will have more than two million people join the working-age group each year over the next decade. This benefits to the Indonesian economy, but the housing market will need to accommodate the growing demands of Millennials (those between 23 and 37 years old). According to the Indonesian Central Bureau of Statistics, Millennials make up more than 50 percent of the productive age population (those aged 16-64).

According to research by Morgan Stanley: “To stay competitive, Indonesian property developers need to adapt to address the needs of the Millennial generation, which has to deal with increasing home prices and affordability issues. Prices have somewhat stabilised in the past two to three years, but wage growth has yet to catch up. At more than five times annual household income, and with average mortgage rates around 10-11 percent, housing is out of reach for many buyers.”

With high capital requirements and small profit margins of the Millennial market, some developers tend to ignore this growing segment.

Millennials are active, smart and sociable, and prefer products that are appealing, practical and affordable. To attract this audience, these characteristics should be reflected in future developments, and be available at an affordable price. They want to live close to work to minimise commuting times, and be near neighbourhood attractions and entertainment, green space, sports facilities, schools and hospitals.

When targeting the Millennial market, considerations to bear in mind must include them being tech-savvy, as they will most likely look for properties on a mobile phone, and use technology to assess location, price, developer credibility, building details, payment processing and developer track records. They have a critical eye for advantages and disadvantages, and value a high return on investment

With housing in Jakarta often too expensive for most Millennials, many look at having their first home in a satellite city.

Paramount Land is offering several residential clusters in Gading Serpong, the flagship township development of Paramount Land, which are suitable for first-time buyers. They consist of 100-150 units per cluster, with payment plans available to buyers,

“We deliver products that are in tune with Millennials’ earnings, therefore these products are well received by the market,” said Ervan Adi Nugroho, President of Paramount Land.

“We will not only provide homes, but also provide opportunities for residents to open their own businesses near their homes,” said Nugroho. “We believe this development will boost entrepreneurial spirit as well as help to oil the wheels of the regional economy. Developers are expected to be creative and innovative in helping the government make breakthroughs among the critical Millennial market.”

Source: World Finance

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