Jakarta Property Institute (JPI) asked 300 millennials about housing in Jakarta to understand the housing needs of the generation that dominates the current workforce. What are their housing preferences? And what have been their considerations and concerns about housing? Here are the findings we obtained through this survey.
1.Apartment is the choice of millennials in Jakarta
54% of the 300 millennials surveyed by JPI want to live in an apartment in the center of Jakarta. Practicality and proximity to the center of activities are attractive to them. They also consider that an apartment with all its conveniences is not only a place to live but also a lifestyle choice. Many said that living in an apartment will free them from taking care of things, such as leaks, pump repairs, which are usually the hassles of owning a house.
2.Those who are tired of the road, prefer to live in an apartment
Millennials, who are the productive workforce, spend a lot of time on the road. The more tired millennials are on the road, the more they want to live in a city center apartment. 37% of millennials can spend 31-60 minutes, even around 30% spend more than 1 hour to get to work. Not to mention the inadequate public transportation and having to jostle during rush hour makes them want to live in a downtown apartment even more.
3.Apartment equals cost-saving
Millennials should allocate 10% of their income, which ranges from Rp 5-10 million per month, for transportation. The longer the distance traveled, the greater the transportation costs incurred. For example, the use of online motorcycle taxis that charge based on distance traveled. Compare this to millennials who live in apartments close to their workplace and only need to walk to their place of residence. Then transportation costs can be more efficient and there is no need to use ojol.
4.High mobility is a millennial lifestyle
Millennials are a hardworking generation. Public transportation and workplaces are the two most important things to have nearby. Health facilities follow after these two places.
5.Apartment prices are still considered expensive for millennials
The main reason millennials don't want to live in an apartment is the unaffordable price. These hardworking millennials say that they can afford to pay around Rp 1-3 million per month in installments. With the current conditions, of course this figure is not enough to buy decent housing in the middle of Jakarta. The provision of low-cost housing is expected to be able to answer the housing problems for millennials. The government must be the main player in this effort because land prices are already so expensive that developers cannot provide cheap housing.
6.Land ownership status is important for millennials
Ownership status is also a big consideration for millennials. As you know, apartment ownership is limited to 30 years with a 20-year extension option while landed houses are unlimited. So, many millennials choose landed houses because they feel safer and can be inherited to their children and grandchildren. Overcoming this, maybe the government can relax the rules regarding the extension of apartment ownership so as to attract millennials to live in apartments.