Co-Residence: A Growing Trend in Jakarta’s Housing Market

property sector
property sector

The popularity of co-residence, also known as co-housing or collaborative housing, is on the rise in DKI Jakarta, Indonesia. This urban community-driven initiative is not only addressing the housing shortage but also presenting unique business opportunities.

According to Joko Adianto, the Chairman of the Housing and Urban Settlement Science Group at the University of Indonesia, co-residence offers a viable solution to the limited availability and soaring prices of land in Jakarta. This innovative approach takes the form of vertical housing, specifically multi-family housing, and is driven by the community’s self-initiative.

In a press conference held by the Jakarta Property Institute, Joko explains, “Co-residence is a result of community-driven initiatives, and the building height typically ranges around four floors.”

This sets co-residences apart from other types of vertical housing developments, which are usually constructed by developers or the government and often consist of high-rise apartment towers exceeding 15 floors.

The concept of co-residence aligns with the Jakarta Provincial Medium-Term Development Plan (RPJMD) 2017-2022, which aims to provide 250,000 units of affordable and decent housing. Joko emphasizes that this housing model can contribute to the supply of affordable homes, helping to bridge the gap between demand and availability.

To illustrate the potential impact of co-residence, Joko presents a simulation using a 360-hectare land area, with each unit occupying 36 square meters. Based on these calculations, constructing four-story vertical buildings could potentially yield approximately 280,000 housing units. This demonstrates the significant potential of co-residence in addressing the housing backlog.

While co-residence offers promising prospects, it is crucial to consider the current housing landscape in Jakarta. Data reveals that housing land in Jakarta spans 320.6 square kilometers out of a total land area of 662.33 square kilometers. Notably, 91 percent of this land is designated for landed houses, also known as tapak houses.

However, Jakarta still faces a backlog of approximately 250,000 housing units. Joko clarifies that this backlog is not due to a lack of housing supply, but rather a mismatch between the available supply and the purchasing power of the population. Rising housing prices, particularly for small houses, have contributed to this discrepancy.

Implementing the co-residence concept can bring about multiple benefits, including increased revenue for the region through taxes and improved daily consumption by the community. Nevertheless, the current regulations surrounding this type of housing remain limited, despite the introduction of Governor Regulation No. 31 of 2022, which addresses the detailed spatial planning of the Jakarta Special Capital Region.

Joko emphasizes the need for significant zoning regulation revisions to accommodate co-residence housing effectively. This requires establishing clear regulations for multi-family housing within the housing types, subsequently translating them into zoning regulations implemented by the Jakarta Provincial Government.

Additionally, the development of co-residence housing necessitates adjustments in various aspects, such as spatial planning, social considerations, financing options from banks, ownership systems (including long-term leases), and obtaining the required permits.