The upcoming Jakarta-Bandung High-Speed Rail (KCJB) project and the Jabodetabek LRT (Light Rail Transit) system are anticipated to have a significant impact on the property market in their respective locations.
These two national strategic projects are not only expected to raise property prices but also to stimulate an increase in property demand.
The KCJB project, scheduled to be launched in August 2023, encompasses a vast rail network spanning 304 kilometers. Its establishment aims to foster a thriving property market in the surrounding areas.
Furthermore, the seamless connectivity between the high-speed rail and LRT systems is predicted to provide a convenient and effortless commuting experience. Consequently, the introduction of these mass transportation options is likely to drive the demand for residential properties and apartments in the vicinity.
Syarifah Syaukat, a Senior Research Advisor at Knight Frank Indonesia, emphasizes the appeal of housing located near train stations, particularly among the millennial generation.
According to data from Jakarta Property Highlight, vertical building sales in Transit-Oriented Development (TOD) areas during the second semester of 2022 were 2% higher compared to overall sales in Jakarta.
“The proliferation of projects around TOD areas is driven by the integration of housing and public transportation, creating a compact city through improved accessibility. This approach aims to minimize congestion and enhance urban movement efficiency,” explains Syarifah.
The presence of LRT and high-speed rail stations is also deemed influential in driving demand for residential properties in the surrounding regions. Consequently, it is expected to impact both the selling and rental prices of properties.
Based on research conducted by Knight Frank Indonesia, properties in TOD areas tend to have higher selling or rental prices in the second semester of 2022 compared to similar segments in Jakarta.
For example, residential properties in TOD areas in Jakarta were observed to have a selling price approximately 4% higher than comparable segments in other parts of the city.
Therefore, with the forthcoming implementation of the high-speed rail and Jabodetabek LRT systems, it is predicted that property prices in the vicinity of these transportation modes will experience a notable increase.
In addition to influencing selling prices, the progress of construction for both transportation modes is expected to generate a rise in property demand. As the projects near completion, the anticipation and excitement surrounding them will likely contribute to an even greater surge in the property market.
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