Jakarta Condominium Purchases Relatively Stagnant

By : Ahmad Fadli And Aldi Firhand. A | Thursday, February 08 2018 - 21:43 IWST

Apartment Illustration (Illustration)
Apartment Illustration (Illustration)

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.

News Comment

Today's Industry

PT Autopedia Sukses Lestari Tbk (ASLC)

Rabu, 25 Januari 2023 - 09:30 WIB

ASLC Successfully Surpasses 2022 Used Car Sales Target via Caroline.id

PT Autopedia Sukses Lestari Tbk (ASLC), a company engaged in used vehicles auction and trading of used cars, succeeded in selling 2,481 units of used cars through used car dealers under its…

A woman is paying her attention to the Jakarta Composite Index board movement. (Document of INDUSTRY.co.id)

Kamis, 05 Januari 2023 - 22:29 WIB

New Economic Board, GOTO Share Moves Closer to Global Indices

The presence of the New Economic Board on the Indonesia Stock Exchange (IDX) brings many benefits to PT GoTo Gojek Tokopedia Tbk (GOTO). One of them is getting closer to the shares listing of…

PT Alkindo Naratama Tbk (“ALDO”)

Senin, 19 Desember 2022 - 23:51 WIB

ALDO Aims 2023 Sales to Increase More Than Double

PT Alkindo Naratama Tbk (“ALDO”), a listed company engaged in the integrated paper and chemical business are optimistic that the Company's performance in 2023 will improve, in line with…

Lauren Blasco of ACV.

Senin, 19 Desember 2022 - 22:39 WIB

Indonesian Chamber of Commerce and Industry taps AC Ventures’ ESG head to join task force

The Indonesian Chamber of Commerce and Industry (KADIN) recently tapped AC Ventures’ (ACV) Head of ESG Lauren Blasco to join its newly formed ESG task force, an elite group of stakeholders…

The CIP Utilities & Automated Reporting Analytics allows plant managers

Senin, 19 Desember 2022 - 21:50 WIB

Emerson’s New Analytics Software Automates Utilities Monitoring and Reporting for Clean-in-Place Applications

Emerson: Today Emerson announced the release of its new Clean In Place (CIP) Utilities and Automated Reporting Analytics package delivered via PACEdge™ and Movicon™ platforms on an industrial…