JAKARTA, NNC - In this month of Ramadan, the traditional national property market has declined, except for apartments that are in great demand by millennials. In fact, the survey by the Rumah.com Property Index found that the prices of apartments nationally jumped dramatically in the last three years.
Country Manager of Rumah.com Marine Novita explained it is also known that the rise in apartment prices tends to stabilize in the period of Ramadan this year. Meanwhile, in Ramadan 2016 (June 2016 to early July 2016), the trend of the apartment market climbed 1.1 percent in the third quarter of 2016, compared to the second quarter of the same year.
"Furthermore, in the period of Ramadan 2017, which began in late May 2017 and ended at the end of June 2017 (second quarter), the rise also occurred. The Index showed a two percent rise in the second quarter compared to the second quarter. Year-on-year, Index showed a rise by 10.5 percent in the first quarter of 2018 compared to the first quarter of 2017," she explained.
According to her, this trend is different when compared with the overall property market trend, which also measures the landed houses. In the period of Ramadan 2016, the property market trend began to decline 0.4 percent in the third quarter.
Furthermore, in the period of Ramadan 2017, a drop by 0.1 percent also occurred in the third quarter. "The property market trend in the Ramadan phase has traditionally declined because consumer spending is more on consumptive spending," she explained.
The optimism of the property market in the apartment sector is felt by Agus Susilo, President Director of Cimanggis City Apartment, Depok. According to him, sales in Ramadan are maintained. In May, it managed to sell 51 units.
In addition to the ease of financing such as the down payment installment, a marketing gimmick tailored to the ongoing event, such as Ramadan, seems to be powerful enough to attract consumers.
For example, about 30 percent of contracts (in May) occurred when the company held a breaking the fast together event in order to share product information, by offering an umrah bonus.
"In the month of Ramadan it even increased if compared to previous years in the same period. Most apartment buyers are workers around Depok. Some are to live in, some are for investment. As many as 30 to 40 percent of buyers are from millennials, under 35 year, some are single," said Agus.
Head of Marketing of Rumah.com Ike Hamdan added from a millennial consumer point of view, the apartment is an attractive property. Its strategic location supports their active and dynamic character. "The apartment is usually located not far from the entertainment center and easy to access transportation, and the price is still affordable for those who earn less than Rp10 million," he said.
Meanwhile, from the standpoint of the older and well-established generations they are targeting the apartment as a means of investment. Moreover, the rise is more rapid when compared to the average increase in landed houses. Apartments are also relatively easier to rent than landed houses.