Wednesday, 20 October 2021 | 13:35 WIB

Purchasing Power of Millennial Generation in Property Sector Expected to Grow 8 Percent

Property observer and founder of Panangian School of Property Panangian Simanungkalit.

JAKARTA, NNC -  Property observer and founder of Panangian School of Property, Panangian Simanungkalit, said the property sector in 2018 is predicted to grow eight percent compared to 2017, and will be driven by millennial generation segment.

"The developers’ orientation this year leads to the development of property products that can be reached by the millennial generation market. Moreover, this segment has the potential to continue to grow until the next 10 years," Panangian Simanungkalit said on Sunday (12/10/2017).

According to Panangian, the purchasing power of the millennial generation in the property sector is those supported by economically well-established parents.

While their own ability, he continued, in buying property usually only ranges between IDR500 million and IDR1 billion.

"But the population of this segmentation will continue to grow significantly due to the demographic bonus so that it affects the industry," he said.

Panangian asserted that the millennial market is a potential market that will continue to increase until it reaches its peak in 2030.

For that, he said, banks providing housing loans should also be more open to be accessible by this millennial generation.

"One of the government banks has been seriously working on housing loans for this market segment," he said as reported by Antara.

He also argued that the rise in the number of millennial in property purchases contributes to the growth of creative industries in the architectural and interior sub-sectors.