Update COVID-19 in Indonesia: 1,769,940 confirmed infections, 49,205 deaths (22 May 2021)
7 June 2021 (closed)
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
Jakarta Composite Index (6,069.94) +4.77 +0.08%
Jakarta's property market remains prospective despite Indonesia's slowing economy and the upcoming legislative and presidential elections (scheduled for 9 April and July 2014). Luke Rowe, Technical Advisor at Jones Lang LaSalle Indonesia, said that the apartment (particularly luxurious apartments) and condominium segments in Indonesia's capital city will continue to post growth as they have done in recent years. Generally, around 90 percent of the units of a new project are sold before construction is finished.
In line with slowing economic expansion of Indonesia (from 6.23 percent in 2012 to 5.78 percent in 2013), the country's property sector also decelerated. Moreover, the upcoming elections bring temporary uncertainty about what the new government's stance on property development or general economic growth will be. If the elections will run orderly and results are well-received by the market then the sector can accelerate again according to Rowe. Lastly, the higher interest rate environment and sharply depreciated rupiah exchange rate in 2013 have also impacted negatively on Indonesia's property sector.
Characteristic of property sales in Jakarta is that about 74 percent of a new project is already sold before construction has started, while about 90 percent of the project is sold by the time construction has finished. In other countries, generally, 30 percent is sold before construction of the project has commenced, 50 percent when the roof is closed, and 70 percent when construction has finished.