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Rising car ownership cost propelling TOD property sales trend: Colliers
A recently released report from Colliers Indonesia suggests that high-rise residential apartments in TOD can expect to see a sales boom, driven by the rising cost of owning a car in Greater Jakarta.
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The towers of the Pakubuwono Residence apartment complex on Jl. Pakubuwono VI just into the hazy skies above South Jakarta on Dec. 15, 2017. (JP/Wienda Parwitasari)
T
he rising cost of using private vehicles and the increasing number of end-user buyers in the property market might indicate a need for more high-rise residential buildings in transit-oriented development (TOD), property consultancy Colliers Indonesia says.
TOD was a relatively new concept in Indonesia, but TOD “prototypes” had existed in Greater Jakarta since state-owned railway operator PT Kereta Api Indonesia launched the KRL Commuterline service connecting the suburbs of Bogor, Depok, Bekasi and Tangerang with downtown Jakarta.
Ferry Salanto, head of research at Colliers Indonesia, said in a statement published on Wednesday that TOD apartments would become increasingly appealing to end buyers because the cost of owning a car, including tolls, fuel and car taxes, was rising.
“As the number of end-user buyers increases, the apartment market may recover. This would indicate [...] a genuine need for this type of high-rise residence,” Ferry stated.
“But the government’s plan to provide affordable and environmentally friendly mass transportation infrastructure is critical to the success of TOD [apartments].”
Read also: Jakarta counts on private investors to expand MRT, LRT
According to a Colliers report published on Wednesday, TOD areas developed around the MRT Jakarta have focused on long-established commercial areas, where high-rise residential buildings target the middle- and upper-class consumers that viewed public transportation as added value.
