IKN, the Second Most Prospective City for Property in 2023

the construction process of the segment 2 Sepaku ring road in the location of the National Capital City (IKN) Nusantara, North Penajam Paser Regency, East Kalimantan, Tuesday (4/10/2022). (ANTARA PHOTOS - Rivan Awal Lingga)

The New Capital City (IKN) is still under construction. However, out of several metropolitan cities in Indonesia, IKN is the second most prospective city for property in 2023.

This is based on the latest Indonesia Property Outlook 2023 survey released by Knight Frank. The survey explains that IKN is in second place out of 7 metropolitan cities in Indonesia.

Senior Researcher Knight Frank Indonesia Syarifah Syaukat said 15 percent of respondents saw IKN as a prospective city after the greater cities Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) which outperformed 51 percent of respondents.

“In this survey, greater cities are still prospective but surpassed by their IKN position. IKN is the second potential area for second property growth [after Jabodetabek],” said Syarifah at the Signature Restaurant at the Kempinski Hotel Jakarta, Thursday (1/12/2022 ).

IKN’s position surpasses the prospects of several other metropolitan cities. After Jabodetabek, IKN is followed by Surabaya (10 percent), Bali (7 percent), Makassar (7 percent), Medan (4 percent), and Bandung (4 percent).

According to Syarifah’s presentation, the supporting factor for IKN as the second prospective area for property growth next year is the government’s self-confidence as evidenced by the incessant physical development of basic infrastructure in IKN.

“We have indeed caught the signal that we are quite confident. After the study process is carried out, we will see that the government is collaborating with various other stakeholders to start realizing the development physically,” he said.

Moreover, there are strong signals from potential investors from various countries such as South Korea, Japan, Saudi Arabia, Malaysia, and others to invest and contribute to building IKN.

According to him, various information related to the commencement of infrastructure development at IKN Nusantara has become a positive sentiment for me. I think the colorful information we received made respondents confident.

Furthermore, Director Knight Frank Indonesia Sindiani Adinata added that the level of market confidence in IKN will grow if a captive market starts to form.

Thus, the transfer of ASN/PNS, TNI/Polri, as well as other institutions that will first move to IKN will become pioneers for the growing ecosystem of residential properties and other supporting facilities.