Sales of condominiums in Jakarta are predicted to grow slightly, so that they will be in the range of 84 percent to 85 percent of supply in the market by the end of this year, according to property consultancy Leads Property.
To reach that point, Leads predicts developers will continue to offer attractive gimmicks and also take advantage of government incentives such as cuts in Value Added Tax (VAT).
Leads is concerned about the continued restrictions imposed by the government due to the unfinished Covid-19 pandemic, thus limiting the developer’s space to market their products.
Leads research results show that in the second quarter of this year, despite the vaccination program, condominium developers postponed their plans to launch projects because many units were not sold.
As of June 2021, the cumulative offerings for the entire condominium market reached 256,394 units, which has persisted since last year. From the demand side, during the second quarter of the year, cumulative demand grew by an insignificant 0.2 percent to 213,361 units.
Condominium Supply Distribution in Jakarta
In terms of sales, in the midst of no new projects and no significant demand, the level of sales grew slightly by 0.23 points quarter-to-quarter (qtq) 83.2 percent or 0.27 points from 2020.
As for the selling price, consistent with a stable market, prices are also in almost the same movement.
Jakarta’s central business district (CBD) grew slightly by 0.2 percent qtq to IDR 48 million per m2. Mori Showflat Meanwhile, the prime area market recorded an average price of IDR 34.4 million per m2 or grew 0.5 percent qtq.
Sales of condominium apartments remain positive in the midst of a pandemic
The condominium or apartment property market stagnated in the first half of 2020, because the sales rate was relatively the same as at the end of 2019, which was around 95.4%.
This phenomenon occurred due to the Covid-19 pandemic that hit Indonesia in early 2020.
Associate Director Strategic and Consultancy Knight Frank Indonesia, DonanAditria said, the weakening national economic conditions had an impact on the purchasing power of the general public.
In the midst of the pandemic, the vertical residential sector, strata apartment (condo) was recorded to have positive growth at the beginning of the year because buyers are generally end-users.
In line with this statement, the President Director of PT Pollux AditamaKencana, YantoZefania, said that the strata apartment (condo) sales market remains challenging to date, amid optimism about the amount of stock that will come until 2024.
According to him, the developers continue to adapt to various sales promotions.
“The policy of lowering interest rates is expected to increase sales from the apartment segment in a better direction. Pollux Chadstone itself is optimistic that it will remain the choice of the public and foreign investors. There is hope for the Indonesian property industry to rise from this stagnation,” said Yanto.
Yanto further explained that property developers, especially apartments or condominiums in the Cikarang area, can still breathe a sigh of relief.
He said that the largest industrial area in Southeast Asia is a growing area (sunrise area) for the property business, including apartment products.
“With a business reach on an international scale, many companies that have developed in this city come from abroad, such as Singapore, England, Germany, Korea, Japan, China, Malaysia, Taiwan, the Middle East, and many more,” he added.
The location of the Pollux Chadstone Apartment is also strategic because it is right in front of the West Cikarang Toll Exit, a mega superblock developed by PT Pollux AditamaKencana, a subsidiary of PT Pollux Properti Indonesia, carrying the 6 in 1 concept with apartments, hotels, PCM Mall, SOHO, F&B 24 hours, as well as an integrated hospital in one complex.
“Pollux Chadstone tries to give its best to provide a sense of security and comfort for residents and visitors. We hope that it can be a reference for other developers to pay attention to customer satisfaction, so that the national property industry can continue to advance and advance in class,” he concluded.