Jakarta Condominium Market Continues to Grow, New Residential Trend?

Jakarta Condominium Market Continues to Grow, New Residential Trend? (photo:
Jakarta Condominium Market Continues to Grow, New Residential Trend? (photo: Narciso Arellano - Unsplash)

During the second half of 2022, there were an additional 6,222 new condominium units in Jakarta. This number does not include the new units that are currently waiting to enter the market in 2023.

However, there is a trend of selective condo-buying by consumers, according to Senior Research Advisor from Knight Frank Indonesia, Syarifah Syaukat. This choice is based on certainty. Nonetheless, sales growth reached 95.7% in the second half of 2022.

“Ready-to-live-in condominium units are the primary choice for consumers because of the certainty of units that are already available for delivery to consumers. Meanwhile, the average sales of new stocks reached 64.2%. We also note that South Jakarta is still the largest catchment area for new condominium markets,” she said on Friday (24/2/2203).

The latest Jakarta Property Highlight report also noted that condominium market transactions, primarily from the middle class, reached 40% in the second half of 2022.

On the other hand, almost half of the new condominium projects in Jakarta increased their prices at the end of 2022, followed by a 0.9% price strengthening (HoH/semester to semester) on existing units.

Meanwhile, the Country Head of Knight Frank Indonesia, Willson Kalip, stated that in the Asia Pacific region, Jakarta is one of the cities with positive property growth in 2022, along with Tokyo, Mumbai, Bangkok, and Singapore.

“Although the condominium market’s growth is still slow, this sector has considerable resilience. The middle segment’s transactions have dominated in the last 2-3 years. Going forward, this market niche needs to be better anticipated with digital marketing strategies and accessible payment systems, coupled with incentive push,” he said.

Information, a condominium is one type of vertical dwelling in Indonesia. The term “condominium” comes from the English word “condominium.” The word is a combination of the Latin words “con” and “dominium,” meaning together and ownership.

From these words, it can be interpreted that condominiums lean towards the ownership of a property unit that is located in a vertical dwelling.

Condo owners typically share communal areas in vertical dwellings, such as swimming pools, gyms, and parking areas.

Similar to apartments, a condominium functions as a private residence within a vertical building. It is like living in a house because the owner has full rights to the residence but not to shared facilities.

The facilities provided are not much different, such as swimming pools, gathering spaces, gardens, gyms, and others. Another function of the condominium is as a property investment for both rental and sale.