Homeownership Challenges and Property Sector Exposure in the Capital Market

For youth nowadays, buying physical property is not only about choosing the right model or location. One of the first challenges is preparing the initial fund aka the down payment. In addition, buying property also involves monthly installments, administrative fees, taxes, insurance, notary fees, and other transaction costs that can make the overall funding requirement quite substantial.

This issue is relevant because Gen Z is one of the largest demographic groups in Indonesia. Based on the 2020 Population Census, Statistics Indonesia recorded that Gen Z, defined as people born between 1997 and 2012, accounted for 26.46% of Indonesia’s total population. This means that part of this generation is now entering productive age, building income, and facing long-term financial decisions, including housing needs.

From the property market perspective, Bank Indonesia data shows that in the first quarter of 2026, most primary home purchases by consumers were made through mortgages (Kredit Pemilikan Rumah / KPR), accounting for 69.87% of total purchase schemes. In the same period, primary residential property prices grew modestly by 0.62% year-on-year, while sales declined by 25.67% year-on-year.

This data shows that owning physical property is closely related to financing capacity. For younger people who are still building their income and cash flow, the need for a down payment and monthly installments can become an early barrier before entering the stage of property ownership.

Physical Property and Its High Entry Barrier

Land, houses, or apartments have different characteristics from financial assets. The transaction value is large, the buying process can take time, and liquidity is relatively low. When someone buys a house, the transaction does not stop at paying for the asset itself. It also involves legal documents, transaction costs, and a long-term cash flow commitment.

Because the entry barrier is relatively high, the property industry cannot be viewed only from direct ownership of houses or land. In the capital market, this industry is also reflected through publicly listed companies operating in the property and real estate sector. This means that property can be viewed from two perspectives: property as a physical asset and property as a sector exposure in the capital market.

Property Exposure Through the Capital Market

Exposure refers to a connection to an asset, sector, or industry. In physical property, exposure is obtained through direct ownership of houses, land, apartments, or buildings. While in the capital market, property exposure can be seen through shares of publicly listed companies operating in the property and real estate sector.

The Indonesia Stock Exchange has the IDX Sector Properties & Real Estate, or IDXPROPERT, which measures the performance of stocks in the Properties & Real Estate sector based on the IDX Industrial Classification, or IDX-IC.

However, property stocks are not the same as owning physical property. Shareholders of property companies own shares in publicly listed companies, not direct ownership of houses, land, or the property projects owned by those companies. Therefore, the factors that influence their value are also different.

Other differences can also be seen in terms of potential dividends and liquidity. Property stocks may provide dividends if the company records profits and decides to distribute part of its earnings to shareholders. However, dividends are not guaranteed, as they depend on the company’s financial performance, capital needs, and corporate policy.

In terms of liquidity, physical property generally takes longer to sell because the process involves buyers, legal documents, price negotiations, and transaction costs. Meanwhile, shares are generally easier to liquidate because they are traded through the stock exchange. Even so, the ease of selling shares still depends on the liquidity and trading activity of each stock.

The price of physical property is largely influenced by location, land size, building condition, transportation access, and demand in a specific area. Meanwhile, property stock prices are influenced by company performance, project sales, debt structure, margins, stock liquidity, capital market conditions, and investor expectations toward the real estate industry.

When the JCI Weakens, Where Does the Property Sector Stand?

When the Jakarta Composite Index (JCI) is under pressure, not all sectors move with the same intensity. Some sectors may decline more deeply than the market, while others may show more limited movements. This is where beta is used to understand the movement characteristics of each sector relative to the JCI.

Beta shows how sensitive a sector is to the JCI. A beta above 1 means that the sector has historically moved more aggressively than the market. A beta below 1 means that the sector has historically moved less than the JCI.

From January 2024 to May 2026, the IDX Sector Properties & Real Estate recorded a beta of 0.814 against the JCI. This means that the property sector continued to move in the same direction as the market, but not as strongly as the JCI overall. In a weakening market condition, this characteristic indicates that the property sector’s correction has historically tended to be more limited than sectors with a beta above 1.

Sector	Beta Relative to the JCI
IDX Sector Healthcare	0.428
IDX Sector Consumer Non-Cyclicals	0.602
IDX Sector Financials	0.706
IDX Sector Properties & Real Estate	0.814
IDX Sector Transportation & Logistic	0.878
IDX Sector Industrials	0.891
IDX Sector Consumer Cyclicals	0.938
IDX Sector Technology	0.951
IDX Sector Infrastructures	1.052
IDX Sector Energy	1.057
IDX Sector Basic Materials	1.284

Based on the table, the property sector is below the IHSG in terms of historical sensitivity. Its position is lower than sectors such as energy and basic materials, but still higher than healthcare, consumer non-cyclicals, and financials.

Even so, beta does not guarantee that the property sector will always be more stable. Beta only reflects the historical relationship with the IHSG over a specific period. Risks from interest rates, purchasing power, project sales, debt structure, and stock liquidity can still affect the movement of the property sector.

Ultimately, the challenge of down payments makes physical property ownership a financial decision that requires significant readiness, especially for Gen Z, who are still building income and cash flow. On the other hand, the capital market provides another perspective for observing the real estate industry through property sector stocks. This exposure is not the same as directly owning a house or land, but it can show how the property sector moves within the stock market ecosystem.

So, what do you think, Sobat KAF? When physical property ownership still requires substantial readiness for down payments and financing, can exposure to the real estate industry through the capital market be another interesting perspective to study?

Let’s discuss in the comments!

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Disclaimer: This content is created for educational purposes or service promotion, and does not constitute a recommendation to buy or sell any specific Securities. Any risks arising from investment decisions made based on the information in this publication are the sole responsibility of the respective audience. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (Otoritas Jasa Keuangan / OJK).