The Increase of House Price in Jakarta the Second Highest in Southeast Asia

By : Ahmad Fadli And Aldi Firhand. A | Saturday, May 26 2018 - 22:14 IWST

Property Illustration

INDUSTRY.co.id - Jakarta - International property consultant Knight Frank based in London, England, again issued a Global Residential Cities Index. This time the released index lists the ranking of house price increases in 150 cities in the world in the fourth quarter of 2017.

In the list, Jakarta ranked 82nd in the world with a rise in house prices by 3.8 percent higher than the same quarter in 2016.

For Southeast Asia, there are only three cities in the list of 150 cities. Jakarta came in second after Kuala Lumpur, ranked 68th with a 5.8 percent price increase in the same period.

Keep in mind the average price of occupancy in Jakarta, according to JLL, for the upper middle class Rp 45 million per square meter, and for the middle class Rp 25 million per square meter. In third place there is Singapore in the 111th position with a price increase of 0.6 percent.

The ratings obtained by Jakarta increased from the previous 86th position in the third quarter of 2017 with price increases of 3.7 percent. However, for a wider scale, ie in the Asian Continent, Jakarta's ranking is still lower than in other cities in the same period. For the highest position occupied by Hong Kong, then followed by the cities of Ahmedabad, Hyderabad, Mumbai, Pune, and Bengaluru located in India.

There are also cities of Chongqing, Changsha, Gaungzhou, Ningbo, and Qingdao in China; Istanbul and Ankara in Turkey; Osaka and Tokyo in Japan; and Kuala Lumpur in Malaysia. The rise in house prices in the cities mentioned above ranged from a low of 4.2 percent in Qingdao, China, to a 14.8 percent high in Hong Kong. In general, the index showed an average growth of 4.5 percent in 2017. A year earlier, this figure was close to 7 percent.

The highest position was led by Berlin, the capital of Germany, with a price increase of 20.5 percent. Causes include strong population growth, stable economic conditions, and low unemployment, leading to higher price increases.

Associated with the ranking, Knight Frank researcher Kate Everett-Allen said the index shows how far the management of house price growth in each city by 2017.