Apartments are a strong growth area, cumulative apartment supply increased by 1.8 per cent to 41,772 units with a 55 per cent share in Jakarta condo market, according to Colliers International.
Colliers reported that around 8,340 units from a total of 16 projects were launched during the last year. A large portion of these projects (81 per cent) were comprised of total units below 1,000 and 69 per cent of them were created for single residential use. The total strata title apartment supply increase by around 55 per cent, representing the completion of around 25 apartment projects totaling 22,900 units. Thus, the total apartment supply should increase to about 78,800 units by the end of the next year.
While the middle-low segment projects, with an offering price of between Rp6 and Rp10 million/sqm, command the market with a 55 per cent portion. High-end and luxury projects (with a price of above Rp15 million/sq m) share only 9 per cent of the pie. Luxury projects are only found in the CBD area (four projects) and the South Jakarta area (two projects). Tight competition occurred in certain locations such in Kelapa Gading, Permata Hijau and the Kemang area due to a bulk of supply. In addition, some locations that are currently growing are going to become new high-rise residential areas such as Pluit, Simatupang and Kemayoran.
There is also set to be a condominium element to what will be Southeast Asia’s tallest skyscraper – Dubai-based developer Emaar Property’s Burj project. Emaar Chairman Mohamed Ali Alabbar proposed the project to Indonesia’s president Susilo Bambang Yudhoyono at a meeting earlier this year. Emaar, which is currently the biggest developer in the region, was also responsible for the still under construction 718-meter tall Burj Dubai, which on completion will be the tallest tower on the planet. The move is part of Emaar’s efforts to step up its presence in Southeast Asia; and in Indonesia in particular.