The dream to own a house at a young age can come true when some developers and mortgage banks are competing in giving a special program for Millennials to purchase a house.
According to data from Bank Indonesia, the number of debtor age 26 to 35 years, who dominates mortgage growth, increased in 2018. The growth of the 26-35-year-old debtor mostly occurred in landed houses with an area of 22 to 70 square meter, flats of 22 to 70 square meter, as well as flats of less than 21 square meter.
In details, the 26-35-year-old debtor purchasing landed houses of 22-70 square meter has been increasing starting 2014 until 2018. The debtor group represents 35 to 50 percent of total mortgage borrowers.
Meanwhile, those young debtors have started dominating the market for flats of 22-70 square meter since 2018, representing 35 percent of total mortgage borrowers. The data indicates the potential market for the property industry is millennials. Unfortunately, not all of them have access to apply mortgage for their first homes. The debtor of 26-35 year old only represents 40 percent of the total millennial population in Indonesia. The rest still has no access to a mortgage. There are several obstacles faced by the generation, namely low purchasing power and relatively low income. Millennials’ lifestyle that prioritizes life experience than the future.
In a bid to increase the number of house ownership as well as allowing the young generation to save and invest for the future, PT. Setiawan Dwi Tunggal, the developer of The Parc apartment, offers Nabung DP, a special program that allows Millennials to install the down payment over 2-3 years period.
Director of SouthCity Peony Tang said under the program, Millennials would only need to pay 20% down payment of about 3.3 million rupiahs in 24 times installment. Then followed by paying apartment mortgage of about 3 million a month in installments, which means that consumers would only need to set aside 99,000 rupiahs a day.
Despite offering affordability and installments, The Parc is committed to providing five-star equivalent facilities. Peony said, The Parc will provide facilities for millennials to interact and collaborate with other tenants. One of the offered facilities is co-working space with a free Wi-Fi connection. Thus, the need for millennials to collaborate as well as interact with other tenants would not only in work but also in building friendship can be realized. “Moreover, in the future, there will be interesting yet inspiring community events. Not only that, The Parc has many facilities such as multi-function hall, clubhouse, gym, a 50-meter Olympic-size pool, one-kilometer jogging track, badminton court, among others,” she said.
Aside from those facilities, The Parc will also provide transportation access to support tenants’ mobility. Some access to the areas is through MRT Lebak Bulus and Fatmawati Stations, Transjakarta of SouthCity-Tanah Abang and SouthCity-Kuningan routes, Depok-Antasari toll road via Andara and Brigif exits. Also, Cinere-Jagorawi toll road via Cinere gate and Cinere-Serpong toll road via RE Martadinata gate.
Meanwhile, Associate Director of SouthCity Stevie Faverius said, the increase of Millennial population reaching 60 percent of total Indonesia’s demography provide an opportunity for his company to market The Parc. Even more, The Parc provides various payment easiness which allows Millennials to live in a comfortable house with comprehensive facilities. The payment easiness will enlarge the chance of The Parc in targeting Millennials as consumers.
The Parc is the first vertical housing complex build in 1.5 hectares area, part of 5.5 hectares area of superblock SouthCity. The apartment, developed by PT. Setiawan Dwi Tunggal, is the first co-living housing in Indonesia. “The most important offer to our customers is the living experience in a wide and green area, supported by superblock complex with the comprehensive facility. And we are offering it at an affordable price for millennials,” he said.