Jakarta property market is adapting as attitudes towards living arrangements change.
Jakarta property differs from other Asian capitals. It poses challenges that are not typically found in say Hong Kong or Singapore. As Indonesia’s capital is the country’s main hub for business as well as political business, its enjoys a slightly higher level of GDP than the rest of the country. For the second quarter of this year this figure was just shy of 6 percent. 0.8 percent higher than growth rate experienced by the country as a whole.
With this strong economy brings a larger population. Jakarta’s land prices are rising and space is being squeezed. Subsequently property prices rose out of reach for many. Like many buzzing cities across the world developers have had little choice other than to build upwards. However this vertical living was not necessarily a preferred way to live for residents of Jakarta. There country’s tradition of living in a house remains strong with many residents put off by this new type of living. Consequently the city sprawled outwards in order to meet the demand of homeowners.
There are five different tiers of property in Jakarta. Ranging from lower-middle, mid-end, upper-middle, upper, and high-end. Figures from Savills state that Jakarta has 131,900 apartment units. If you take into consideration that the capital’s population is 10 million, this means a very small proportion live in a high rise building.
But this could all be about to change. There has recently been a wave of residents wanting to move back into the city centre. A move to avoid the increasingly congested roads that are making daily commutes tiresome. This is expected to put more demand on housing as residents are moving from the Bodetabek area back into central Jakarta. Jakarta spilled into Bodetabek in order to meet the demand of landed houses. As a result the area has a population of approximately 20 million.
Developers have taken advantage of this by ramping up supply. This year just over 34,000 units will be completed. This is a marked difference from the 9,718 units that came to the market over the last five years. This increased supply naturally has a catalyst on prices. With more competition developers are having to work hard to entice purchasers. Prices are becoming more attractive prices and many developers are including promotions too. Couple this with changing attitudes of vertical living and now really could be the time to snap up property in Jakarta.
If you want to take advantage of Jakarta’s favourable buying conditions then take a look at Dot Property’s comprehensive listings of properties for sale here.
