“The asking price [for apartments around MRT stations] has increased, but that does not mean that selling prices have increased,” said Aldi Garibaldi, senior associate director investment service at Colliers International Indonesia.

According to Colliers International, the gap between a large supply and soft demand was the major cause of stagnant growth for apartment prices in Jakarta in the first quarter of 2019.

The property developer expects growth to diminish to 3-4 percent this year on the back of weak demand and uncertainty in a political year and increase gradually by 5-6 percent from 2020 to 2021.

“We project that until the end of 2019, the outlook for apartment [prices] would be somewhat stagnant because many investors are taking the wait-and-see stance,” Ferry Salanto, Colliers International Indonesia senior associate director, said on Tuesday,

According to data from Colliers, there will be 37,124 apartment units completed in 2019-2021, consisting of 15,821 in 2019, 11,834 in 2020 and 9,469 in 2021. In the first quarter alone, there were an additional 1,847 apartment units in Jakarta.

Bank Indonesia’s (BI) macroprudential policy in terms of relaxation of loan-to-value (LTV) has been unable to boost the sales of property either because the interest rates for home mortgages were still high.

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