With continuing economic growth in Indonesia, giving increase
to higher per capita GDP, the property market is still rapidly expanding,
particularly in the larger cities including Jakarta (the economic and political
centre of Indonesia). By next year, 46 new property projects will add almost
25,000 new apartments in Jakarta (‘strata title’, a term referring to the
multi-level apartment blocks and horizontal subdivisions with shared areas),
with a combined value of approximately IDR23trillion (almost USD$2billion).
With demand and values on the rise in Jakarta, vertical
infrastructure is the most lucrative and efficient strategy to engage in
property business. The majority of new apartments currently under construction,
target Jakarta’s middle class segment affording to spend approximately IDR200
to 500million (USD$17,000 to 43,000), on an apartment. Analysts claim there are
no signs of a property bubble arising in Indonesia. The main argument being
that the majority of new apartments (around 70%), is purchased by end-users rather
than speculative buyers.
