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Jakarta Post

Housing sales down in Greater Jakarta in H1

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, July 23, 2019   /   06:39 pm
Housing sales down in Greater Jakarta in H1 Housing sales in Greater Jakarta were dominated by the middle-class market segment, with houses priced from Rp 1 billion to Rp 1.7 billion contributing 36.5 percent to the total transactions. (Shutterstock/File)

The first half of 2019 saw a slump in housing sales in Greater Jakarta, amid increased political tensions triggered by April’s presidential election.

Arief Raharjo, research director of Cushman and Wakefied Indonesia, said all indicators showed a significant drop in business, with average housing sales dropping to a range from 3.4 to 22.9 units per residential area.

“In the previous half [second half of 2018], average sales reached up to 26.3 units,” Arief Raharjo said in Jakarta on Monday as quoted by kompas.com.

Meanwhile, the value of transactions dropped 11.9 percent to Rp 33.7 billion (US$2.41 million) on average in each residential area, per month, from Rp 38.2 billion in each residential area per month in the second half of 2018.

Cushman and Wakefield noted that housing sales in Tangerang, Banten, were higher than in Jakarta and its satellite cities, with sales reaching 27.7 units per residential area with a transaction value of nearly Rp 51.7 billion per month.

The company also noted that housing sales in Greater Jakarta were still dominated by the middle-class market segment, with houses priced from Rp 1 billion to Rp 1.7 billion contributing 36.5 percent to the total transactions, followed by the Rp 500 million to Rp 1 billion segment with a contribution of 27.8 percent.

The company also recorded that 77 percent of buyers used mortgage schemes, Arief said, adding that 75 percent of mortgage customers were end-users. (gis/bbn)