Existing projects dominate Jakarta’s Q2 residential sales

Nearly 69% of the sales were from existing projects, thanks to buyer preference for established developments.

In a report, Colliers said overall performance in Jakarta’s residential demand improved mildly this quarter compared to the previous one, with a 0.09% QOQ increase, bringing the total take-up rate to 87.93%. 

Notably, 69% of this quarter's sales were dominated by existing projects. 

Here’s more from Colliers:

The high demand for existing projects this quarter can be attributed to a growing buyer preference for established developments, driven by their perceived lower risk and immediate availability. Additionally, there was a significant tendency among Indonesians to capitalise on last-minute opportunities. Specifically, many transactions occurred in May and June to take full advantage of the 100% VAT exemption, which will reduce to 50% starting next quarter.

Looking forward, we expect that demand in the upcoming quarter will continue to be largely driven by existing projects. However, the reduction in the VAT incentive may lead to a temporary slowdown in transactions, as this adjustment could prompt buyers to reconsider their purchasing timelines and decisions. 

We recommend that developers enhance marketing strategies to highlight unique project features despite the reduced VAT incentive. Offering flexible financing options, additional complimentary benefits, and emphasising value-added amenities may attract cautious buyers.