JAKARTA, The Shiro Corp - Condominium or apartment sales in Jakarta have experienced a drastic decline over the past decade or 10 years.
"So, regarding the condominiums, this decline has already been since 2015," said Yunus Karim, Head of Research of Jones Lang LaSalle Incorporated (JLL) Indonesia, during a press conference at his office in South Jakarta, Wednesday (08/13/2025).
Yunus explained that the surge in property demand, including apartments in Indonesia, occurred in 2012, 2013, and 2014.
In those years, 20,000 apartment units could be sold per year. However, this trend did not last long and began to decline since 2015.
"Then it dropped again in 2020, sales were approximately only 1,000 units per year," he explained.
Even now, until the first semester of 2025, apartment sales in Jakarta have only reached 150 units.
Limited Project Launch
Yunus continued, the launch of new apartments in Jakarta is very limited, affected by sluggish market demand.
"From the side sales rate "Indeed, from all the products offered in Jakarta, we can see that their sales levels are roughly stagnant between 58 to 60 percent," he said.
Also, there has been no monitoring of the launch of new products in the first semester of 2025.
"But perhaps it can be expected that there will be a launch of new products in the next two quarters, although limited," he said.
In addition, apartment purchases are dominated by investors or private investors seeking profits from rental prices as well as capital gain .
However, in recent years, especially after the pandemic, JLL has observed a market shift, from investors to end users or the purchase of apartment units for personal use.
" End-user "It is indeed very limited, usually more dominated by the upper class," he said.
Meanwhile, owners of upper-middle-class apartments are observed trying to increase prices, following the need for optimal development or good market demand.
"Thus, in general, the market is still using a wait-and-see approach, especially with the current economic conditions," he emphasized.
Apartment for Sale
Arvin F. Iskandar, Chairman of the Jakarta Real Estate Association (REI), revealed the tactical strategies being implemented by developers.
The strategy was to sell the apartment at an affordable price, even at a discount of up to Rp 11.8 million per square meter.
This is not just a regular discount, but part of a collaborative program between developers and the Provincial Government (Pemprov) DKI Jakarta to provide decent housing for Low-Income People (MBT).
Arvin explained that the program is focused on completed or ready stock apartments located in Jakarta.
Rather than being left empty, these units are offered at a maximum price of Rp 11.8 million per square meter.
At this price, a vertical apartment in Jakarta can be obtained starting from Rp 200 million to Rp 600 million.
This program targets residents with a DKI Jakarta ID card and a maximum income of Rp 14 million per month.
The Jakarta Special Capital Region Government through the Housing Office will also facilitate this scheme by providing a fund of IDR 500 billion, distributed through banks.
For developers, they also subsidize the selling price so that this program can run with the initial phase of 1,000 units.
"We also help with the interest subsidy for the Apartment Ownership Loan (KPA), which we hope will not exceed 6 percent with a term of up to 15 years," Arvin said on Thursday (8/7/2025).
One of the apartments to be sold is owned by PT Perdana Gapuraprima Tbk, namely GP Plaza and MTH Square.
Invite Developers to the Capital Market
Not only focusing on sales, REI Jakarta also prepares long-term strategies for developers, especially those in the lower to middle range.
Being aware of the banking caution in distributing housing loans, commercial loans, and business credits in 2025, REI plans to bring its members to the capital market.
"there are more than 50 potential developers that we will invite to IPO or issue bonds," said Arvin.
This step aims to enable developers to have more stable long-term funding, not only relying on short-term bank loans. In this way, housing projects can be completed without funding obstacles.
To smooth this step, REI Jakarta also encourages the existence of a property index as a reference for domestic and international investors.
Arvin is optimistic, with strategic collaboration, capital market and various government incentives, the property sector in Jakarta will enter a new and more dynamic era.
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