The completion of this project added 310 units to the market, bringing the total cumulative supply of condominiums in Greater Jakarta to 384,640 units, reflecting a 0.08% increase quarter-on-quarter and a 2.7% increase year-on-year.
Anticipated to remain subdued until year-end, the market is poised to witness limited new supply, while the implementation of the DTP VAT incentive is expected to sway consumers’ preference towards completed and ready-to-occupy projects.
Demand: Stable Sales Rate With Limited Impact of DTP VAT
During the review period, existing condominium sales in the Greater Jakarta area maintained a stable rate of 93.8%, showing a modest year-on-year increase of 0.6%. Concurrently, the occupancy rate experienced an uptick of 2.3% from the preceding quarter, reaching 60.6%. Due to the limited supply, pre-sales of proposed condominium projects surged by 2.7% to 60.4%, leaving approximately 39,000 units of future inventory unsold.
Lower-middle to middle segment projects continued to dominate pre-sales activities, accounting for 68% of total transactions. Bank mortgages and cash transactions prevailed as the primary payment methods.
However, the DTP VAT incentive did not yield a substantial impact on the condominium market, as developers postponed adoption of such incentive and the announcement of the regulation’s extension to February put no urgency for implementation of the incentive.
Pricing: Moderate Condo Price Growth in Q1 2024
In the first quarter of 2024, Greater Jakarta witnessed moderate average price growth in condominiums, with a 0.6% QoQ and 2.3% YoY increase, reaching Rp. 48,500,000 per sqm. CBD areas recorded a 2.4% YoY increase, while prime locations saw a 1.2% YoY surge.
Meanwhile, in comparison to other areas, secondary regions displayed more pronounced growth, with prices rising by 3.9% YoY and 0.9% QoQ. To adapt to market conditions, developers have implemented strategies such as offering fully furnished packages, incentives, and flexible payment terms to attract buyers and stimulate sales.
Rental Apartement Q1 2024
Supply: Commenced Operation of Park Royal Serviced Suites in January 2024
The commenced operation of Park Royal Serviced Suites at the beginning of the quarter added 180 units of new supply to the the CBD Serviced Apartment market. The property features six distinct suite categories of various size, starting from 30 sqm for the Studio Suite to 90 sqm for the Two Bedroom Deluxe Suite.
Additional supply of approximately 155 units was also recorded in the Condominium-for-lease sub-sector, with the completion of Cleon Mansion, Jakarta Garden City, bringing the total supply of Jakarta rental apartment market to 188,523 units, a slight increase of +0.2% QoQ or +3.2% YoY.
Demand: Pick-Up on Long-Stay Demand While Short-Stay Diminishes
The purpose built rental apartment sub-sector saw a slight increase in occupancy by 1.4% QoQ or 4.4% YoY during Q1 2024 with the increase of new inquiries for long term stays. The serviced apartment sub-sector saw a diminishing short stay demand after the holiday period in Q4 2023 which brought the occupancy rate to 62.6%, reflecting a -2.8% QoQ or -0.4% YoY decline in occupancy.
The primary source of net absorption of the rental apartment sector continues to come from condominium-for-lease sub-sector. With a total of 1,736 net absorption, the occupancy rate of condominium-for-lease sub-sector experienced an occupancy increase of +0.9% QoQ or +1.7% YoY.
