The property sales was slightly hampered in the third quarter of 2022. The current macroeconomic conditions are believed to be the source of the developer’s hesitation to launch a new apartment project.
Based on data on property market conditions in the third quarter of 2022 released by Colliers, the total supply of apartments in this period was 219,859 units, up 0.1 percent from the previous quarter and up 1.3 percent year-on-year (YoY).
Meanwhile, there were no significant sales during the third quarter or throughout 2022. Most of the apartment projects experienced difficulties in selling, some even did not record any transactions at all.
The factors that encourage this are the increase in building prices and inflation.
Senior Associate Director Research Colliers Indonesia, Ferry Salanto, explained, “Throughout 2022, only 782 units were sold, so it was still around 61 percent of total sales last year. And this trend continues to slope, we estimate sales this year will not be able to exceed 2021 sales.”
Some of the reasons are the absence of a stimulus that encourages property sales.
The DTP VAT discount has ended and there is no other incentive. In addition, in the secondary market, people or business people tend to keep cash in difficult economic times like today.
In terms of investment, the apartment sector is not projected brightly if it is used only to add to the investment portfolio, because sales have not increased either.
“Developers tend to be less confident with the current macro conditions, it can be seen from the decrease in projects launched this quarter and throughout 2022,” said Ferry, Wednesday (5/10/2022).
“The most appropriate thing to be able to boost this apartment is to make this apartment an object for housing so it’s not just for investment,” he said.
In contrast to housing, whose sales performance is stable because the buyer is an end user. This means that in this case the purchase of an apartment is shifted to a place to live, not just an investment asset.
Thus, the effort that needs to be done is to encourage end-user consumers to reach vertical housing.
One of them can be used with the staircase ownership method to make living in vertical housing more affordable for the community.