Indonesia will see record-breaking levels of condominium sales this year, according to real estate services firm JLL.
Media reports quoted Anton Sitorus, Head of Research at JLL, as saying that despite the weaker outlook for Indonesia’s property market, developers and buyers have shown increased interest in developing and buying property.
Recent research from JLL showed that Indonesian developers launched about 4,000 new condominium units between April and June 2014. More than 7,400 units have been sold in the past six months, it also noted.
Condominium supply in Indonesia reached a total of 13,500 units during 2013, and JLL is predicting supply to accelerate to 15,000 units this year and 16,000 units in 2016.
Luke Rowe, Head of Residential Property at JLL, said that between 2014 and 2020, Jakarta may see an increase up to 20,000 new units per year, adding that this year’s peaceful presidential election contributed to increased optimism in the country’s property sector.
JLL reported there are an estimated 92,490 condominium units in Jakarta, 94 percent of which are occupied. Around 53,660 units are expected to be added by 2017, around 73 percent of which are already sold.
Sitorus added that condominium prices are expected to remain stable. He said that demand for condominiums is rising keenly in West Jakarta (the Puri Indah and Kebon Jeruk areas) and South Jakarta (Kebayoran and T.B. Simatupang areas), where generally the richer segments of Jakarta society live.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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