“Their (the younger generation) purchasing power is not commensurate with ever-rising property prices, so they end up living with their in-laws, or renting,” said Sri Mulyani.
Making matters worse is the problematic supply side. One of the reasons is that land prices keep increasing, especially in urban areas. Sri Mulyani explained that the contribution of the property sector to national budget (APBN) is quite significant, above 13%, especially its ability to generate jobs. The housing sector has a large multiplier effect.
“However, there is a mismatch. We have a gap between demand and purchasing power, that’s worrying. If you can exercise your demand, it means you have purchasing power. I dream of owning a house and I plan to own a house are two different things. A dream is a dream, if you plan, it means you have the purchasing power to execute your plan,” she said.