Condominium numbers increasing

Worldwide real estate services firm, Jones Lang LaSalle expects Indonesian condominium sales to see a record-breaking figure this year, signalled by Jakarta’s current trend, where people remain to shift to living in apartments rather than detached or attached single-unit houses. Jones Lang LaSalle’s head of research, have announced both developers and buyers have shown growing interest towards developing and purchasing property.

The real estate firm’s report reveals that Indonesian developers established approximately 4,000 new condominium units between April and June this year (such as West Jakarta’s St. Moritz, developed by Lippo Group, plus Central Jakarta’s Raffles Residence, developed by the Ciputra Group). Furthermore, more than 7,400 units have been sold during the recent six months.

Last year, the condominium supply of Indonesia hit a total of 13,500 units, with Jones LaSalle expecting the supply to quickly increase further to 15,000 units this year and onto 16,000 units in 2016. Jones Lang LaSalle’s head of residential property, predicts that between now and 2020, Jakarta (quartering a population of approximately 10million people), may experience a rise up to 20,000 new units each year. This year's tranquil presidential campaigns and election also contributed to the increased optimism of Indonesia’s property sector. Assuming no major disturbances following the official election result announced by the General Elections Commission (KPU) tomorrow (22^nd), Jones Lang LaSalle expects the upcoming two quarters to be positive, convincing developers to embark on more condominium projects.

The Jones Lang LaSalle report also reported that there are approximately 92,490 condominium units in Jakarta, at present. Of which 94% are occupied. Furthermore, approximately 53,660 units are expected to be added within three year, with approximately 73% of which are already sold.

Jones Lang LaSalle’s head of research further predicts that condominium prices (particularly upmarket), are expected to stay stable this year. Condominium demand is particularly seen to be growing in West Jakarta (the Puri Indah and Kebon Jeruk areas) and in South Jakarta (the Kebayoran and T.B. Simatupang areas) – The more affluent areas of Jakarta.

Early this month, it was announced that presidential hopeful, Joko Widodo, widely known as Jokowi, plans to allow foreigners to own apartments valued at least IDR2.5billion (USD$213,000), to generate more government tax income.