Promoting the ‘Eco-Living Concept’, Lippo’s Landed Homes Become a Millennial Favorite
Jakarta, August 26, 2021 — The millennial generation presents a major opportunity for the domestic property industry. Beyond location and accessibility, home design is a key consideration for millennials when purchasing property. To capture this market, property developers are competing to offer home designs that suit the lifestyle of this younger generation.
Arif Martianto, Deputy Head of Consumer Credit Processing and Collection Division at BNI, stated that millennials tend to prefer modern minimalist-style homes with flexible space concepts—allowing multiple activities to take place in a single room. This preference has become even more relevant during the pandemic, where many are working from home. “Many developers are now adjusting their designs to fit the needs of urban millennials who favor simplicity. With land areas of around 50m², home designs now tend to be vertical with two-story layouts,” he explained.
PT Lippo Karawaci Tbk. (LPKR) has been quick to recognize this trend. LPKR collaborated with world-class architects Alex Bayu and Karl Princic, who brought forth an eco-living concept fused with simple, stylish, and elegant urban architecture—a design aesthetic highly favored by millennials. Homes that align with millennial tastes have helped drive LPKR’s residential sales, supporting the forecast by CLSA Securities that LPKR could achieve marketing sales of Rp3.5–4 trillion this year, up from Rp2.67 trillion in 2020.
Open-plan layouts with minimal partitions create multifunctional spaces that are ideal for urban millennials working from home. The collaboration between these two renowned home designers resulted in sophisticated home designs priced below Rp1 billion—within reach for the millennial demographic. The Cendana Series, launched in 2020, has supported strong landed housing sales for LPKR. In the first half of 2021, LPKR sold over 1,700 landed housing units priced between Rp600 million and Rp1 billion.
LPKR CEO John Riady stated that Lippo’s home designs have been very well received by consumers. At every unit selection event, the homes offered are consistently sold out within hours. This trend has contributed to strong growth and profits throughout 2021, with average product prices increasing by 10%–13% compared to 2020. “Cendana Parc Phase 1 in Lippo Village sold 467 units with a total sales value of Rp401.4 billion. We are now preparing to launch several new clusters in Lippo Village and Cikarang. With the marketing of these clusters in the second half of 2021, we are confident of reaching our pre-sales target of Rp3.5 trillion. Millennials are our largest market segment, and we believe we can achieve all the business goals we’ve set for this year, with projected sales growth of up to 30%,” said John.
