Overseas developers have been making an entrance into Indonesia’s market.
The first three months of 2017 have been particularly active for the residential market in Greater Jakarta. This is according to Savills who have stated that there were 3,406 new units launched for the first quarter of 2017. This was spread across six new projects, and if compared to the previous year makes up 29 percent of the total stock released in 2016.
The appetite for property has increased hence the ramping up of supply. Just over three thousand units were sold for the first quarter of 2017. This is nearly one thousand more than the previous quarter. However it is to be expected considering that the number of units launched for the first quarter of 2017 is nearly double than the last for 2016.
These figures show the sheer strength of the market. The number of units that have been launched since 2013 has been continuing in an upwards trend. The market has been gaining momentum and increasing numbers of overseas investors have been eyeing up the opportunity in Indonesia. Consequently new projects are springing up either entirely at the hands of foreign developers or as part of a joint venture with a local one. Unsurprisingly Chinese developers have been quick to make an entrance. Often completing projects in a speedy fashion.
This is signifies a new chapter for Indonesia’s property market. But developers are remaining astute to historical demands. Such as the demand for affordability. The lower-mid sector makes up over 50 percent of the market so developers are taking heed of this despite increasing land prices.
North Jakarta remains the centre of the market. This is then followed by West Jakarta and then the South.
