After they buy a house, another problem appears: the new house, located far from the office, makes millennials work to find a new strategy.
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Buying a home in the suburbs brings with it a new problem, that of commuting to the office. Eventually, many choose to rent a house or an apartment near their workplace.
The skyrocketing housing prices in big cities makes productive-age people move to the suburbs. They seek to find a way to buy a house at an affordable price. However, after they buy a house, another problem appears: The new house, located far from the office, makes millennials work to find a new strategy.
For Putri, 30, buying a house is a satisfying achievement. Born and raised in Pasar Rebo, East Jakarta, she had to save money for the down payment on her house. Two years ago, her dream of buying a house came true.
Putri bought a subsidized house near Soekarno-Hatta Airport in Cengkareng, Banten. She pays Rp 800,000 in monthly installments.
Yet, owning a home does not mean all her problems are over, because her house is far from her office in Central Jakarta. Putri needs to drive her motorcycle for at least 2 hours to reach the office from her house. There is no public transportation near her house. Another option is to take an ojek (motorcycle taxi).
Unable to spend a minimum of 4 hours each day on the road, Putri has decided to rent a room in Central Jakarta near her office. Her monthly spending has now doubled, for her installments and rent.
Sari, 32, a private employee in Jakarta, shares the same story of facing difficulties in buying an affordable house with easy workplace access. A migrant to Jakarta, she rents a room in Tebet, South Jakarta, about 30 minutes by motorcycle to her office in Central Jakarta.
Sari, who has been working for five years, said she could not afford to buy a house. She does not have sufficient savings. She pays Rp 1.5 million in monthly rent.
Carolina, 28, has a different story: she and her husband decided to buy a house in South Tangerang, Banten. The couple made the decision after realizing that housing prices in Jakarta were exorbitant and unaffordable. A 36-square-meter house in Jakarta costs around Rp 1 billion. “If we bought it through installments, it will give us anxiety,” said the private employee on Tuesday (30/1).
The market
The productive-age population is growing, including the millennial generation, and is a potential real estate market. Indonesia Property Watch executive director Ali Tranghanda said today’s real estate market of productive-age homeowners were around 27-34 years old.
“The market is ripe, and they need houses. However, they cannot afford to buy houses because their salary is inadequate. Their raise cannot compete with the increase in property prices,” he said.
Ali said the trend among the millennial generation to spend on traveling, purchasing the latest smartphone or pursuing a stylish lifestyle might reflect an “escape” from the fact that they cannot afford to buy a house, a basic need. Some live with their parents and others seek rental accommodate near their workplaces in the city center.
Meanwhile, those of the millennial generation who have purchased subsidized housing in the suburbs also face a dilemma. Often, they buy houses in the suburbs without considering transportation. Consequently, they expend their time and money on traveling from home to work and back.
“Because the house is far from their workplace and it is not connected [with public transportation], their monthly living costs are high. As a result, they vacate their houses and rent a house near their office,” said Ali.
He said there was a shortage of housing for people in the middle- to lower-income group. They were not eligible for buying subsidized houses, but they did not have the capacity to buy nonsubsidized houses.
Therefore, a housing solution was needed for urban residents. There should be a supply of basic rental apartments (rusunawa), basic apartments for sale (rusunami) or houses in the suburbs with transportation access.
Millennials with adequate savings could choose to live in a high-rise apartment or mid-rise apartment that are integrated with public facilities.
Citraland Surabaya general manager Andy Sugiharjo said the current generation chose apartments and rental units because they were more affordable than landed houses.
A studio apartment costs from Rp 300 million to Rp 500 million, while the cheapest landed house costs Rp 700 million.
Those with insufficient savings to buy a luxury apartment, a mid-rise apartment unit or a landed house, there was still another option: renting a basic apartment unit (rusunawa).
Kausar Imran, 38, lives in a rusunawa in Klatak, Kalipuro, Banyuwangi, East Java. Along with his wife, Endang Wahyu Ningsih, he lives in one of 198 units in the five-story building.
Each unit is 27 square meters, and costs Rp 175,000 per month to rent. “Living in a rusunawa was the last option. I don’t have enough money to buy a house,” Imran said.