Jakarta to see two new apartment projects by year-end

The city currently has a supply of over 225,000 apartment units.

During Q3 2023, the construction of the second tower within the Fatmawati City Center project, referred to as Victoria Tower and consisting of 704 units, was successfully finished. 

According to Colliers data, over this same period, the apartment supply in Jakarta experienced a marginal QOQ rise of 0.3% and a YOY increase of 2.7%, resulting in a cumulative count of 225,871 units. The completion of two more projects comprising a combined total of 416 units by the end of Q4 of 2023 is anticipated.

Here’s more from Colliers:

Currently, there is a lack of newly introduced apartments in the market, primarily due to developers channelling their attention towards the completion of ongoing construction projects rather than initiating fresh ones during this specific timeframe. 

Furthermore, the government has instituted novel regulations with the intention of incentivising foreign property acquisitions. This updated regulatory framework simplifies the acquisition process, necessitating just a valid passport or visa, as opposed to the previous prerequisite of possessing a Limited Stay Permit Card (KITAS) or Permanent Stay Permit Card (KITAP). 

Nonetheless, a minimum purchase price of IDR3 billion for apartments in Jakarta has been established to ensure that lower-priced units remain accessible and affordable to local residents.

In light of those developments, it is notable that the majority of projects offering units priced above IDR3 billion are concentrated within the CBD area, constituting 36% of the total, closely followed by the South Jakarta region at 33%. These prime locations present an opportunity to invigorate apartment sales, especially given that these areas serve as workplaces for a substantial expatriate population.