2022-10-12-莱坊-Jakarta_Condominium_Market_Overview_H1_2022_2页_277kb

Jakarta Condominium Market Overview Summary (1H 2022)

Core Content

This document provides an overview of the Jakarta condominium market from January to June 2022, highlighting key trends in supply, demand, sales rates, and pricing. It also includes data on future supply projections and market dynamics, as well as contact information for Knight Frank Research.

Key Market Trends

• Pre-Sales Rate: The pre-sales rate in the first half of 2022 was flat at 65.5%, showing a minimal increase from 65.4% in the previous period.
• Supply and Demand:
  • Total existing supply in Jakarta increased slightly by 0.8% from the end of 2021 to 226,761 units.
  • The cumulative supply increase was only 1,735 units in 1H 2022.
  • Demand remained at an all-time low, with only 914 units sold in 1H 2022, compared to 4,890 units in 1H 2021.
• Unsold Units: As of 1H 2022, 9,494 units were still unsold, indicating a significant portion of the existing supply remained in the market.
• Sales Price Trends:
  • Average sales prices in Rupiah decreased by 6.3% year-on-year to Rp32.5 million per square meter.
  • In US Dollar terms, prices dropped by 7.6% to $2,203 per square meter, influenced by the depreciation of the Rupiah against the US Dollar.

Future Supply Projections

• Proposed Supply (2022–2025): A total of 32,723 units are proposed for supply, representing approximately 14% of the existing stock.
• Area Distribution:
  • 81% of the proposed supply will be in Non-CBD areas.
  • East Jakarta and North Jakarta will contribute the highest shares at 28% and 35%, respectively.
• Segmentation Distribution:
  • The proposed supply will be distributed across different price segments, with middle segment projects forming the largest portion.

Market Outlook

• Developer Behavior: Developers are cautious about launching new high-rise projects in Jakarta due to the weak market conditions and low rental returns.
• Focus on Completion: Most developers are prioritizing the completion of under-construction projects and selling the remaining unsold units to build market confidence.
• Market Recovery: A clear sign of recovery is needed before developers will resume postponed project completions and handover schedules.
• Secondary Offerings: The primary market faces strong competition from secondary offerings, which offer more attractive pricing and benefits.

Additional Notes

• The market is expected to remain sluggish in the post-pandemic period due to excess supply, increased construction costs, and potential rising interest rates.
• The document includes several figures and charts to illustrate the supply and demand dynamics, price trends, and future projections.

Contact Information

• Research Advisor: Syarifah Syaukat
• Position: Senior Research Advisor
• Email: syarifah@id.knightfrank.com
• Phone: +62 21 570 7170
• Website: knightfrank.com/research

Disclaimer

• Knight Frank Research Reports are for general information only and should not be relied upon for decision-making.
• The report does not represent the views of Knight Frank LLP on specific properties or projects.
• Reproduction of the report is not allowed without prior written approval.