Jakarta Condominium Purchases Relatively Stagnant

INDUSTRY.co.id - Jakarta - International property consultant Jones Lang LaSalle (JLL) said that condominium or apartment purchase in Jakarta area is relatively stagnant.

However, it shows expectations in Q4 of 2017, said JLL Indonesia Head of Research James Taylor in the exposure of property in Jakarta, Wednesday (7/2/2018)

He said that the selling rate remains healthy. However, the price level remained stagnant or flat in the period of weakening demand.

However, according to him, the sales rate in Q4 2017 shows the highest sales rate among other quarters throughout 2017 that raises expectations.

Based on JLL data, sales in the fourth quarter of 2017 are as many as 1,300 units, and there are launches of new condominiums that add about 1,400 units to the existing stock of 138,000 units in the property market.

Meanwhile, Head of Residential JLL Indonesia Luke Rowe said that the sales activity of the fourth quarter market in 2017 is likely to be stable with the absorption rate of 63 percent with the greatest demand coming from the lower-middle.

Previously, international property consultant Cushman & Wakefield reminded that the supply of apartment units in the areas of Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek) continues to grow despite the relatively stagnant price growth.

The Cushman & Wakefield release mentions that 18 condominiums or apartments in the area were completed during Q4 2017, bringing 13,484 new units to the market, an increase of 6.2 percent compared to the total supply in the previous quarter.

However, it was reported that there was also a delayed launch of the new project because the developers wanted to do it this year.

The demand level for the constructed project, he said, continues to decline with an average sales rate of 58.4 percent.

Similar to the stagnant growth in apartment prices, for office areas, declared rental rates will continue to be depressed because the estimated level of filling will decrease compared to 2017 although maintenance costs are expected to increase fourth quarter 2018.

Previously, property consultant Colliers International highlighted the oversupply of offices and apartments in the DKI Jakarta and surrounding areas that could lead to dynamics in the property sector by 2018.

"The oversupply situation in office and residential high-rise continues to put pressure on rental and price levels throughout 2018," said Senior Associate Director of Colliers International Indonesia, Ferry Salanto.