TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Property prices expected to fall amid bleak market outlook
Property prices in various sectors are projected to decrease in the remaining months of 2020 as developers try to weather the economic slowdown caused by the COVID-19 pandemic, which has crippled most economic activity in the country.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Model city: People visit the LRT City booth during the Indonesia property Expo held at the Jakarta Convention Center in this undated photo. (The Jakarta Post/David Caessarre)
Property prices in various sectors are projected to decrease in the remaining months of 2020 as developers try to weather the economic slowdown caused by the COVID-19 pandemic, which has crippled most economic activity in the country.
The prices would decline as apartment owners and real estate developers would offer more lucrative deals to tenants and buyers amid sluggish demand, while the office and retail property market had started to see decreasing rents, according to a report by property developer Colliers International Indonesia.
“In the current situation, what property [developers] aim for is occupancy. The most important thing is they have to be able to sell their products, even though they have to sacrifice its prices,” Colliers’ advisory services director Monica Koesnovagril told The Jakarta Post during an online seminar on Wednesday.
Regarding the office property market, Colliers office service director Bagus Adikusumo said the projected sharp decline in the country’s economic growth due to the COVID-19 outbreak would seriously affect demand.
“If the GDP growth decreases to around 2 percent or event stagnates at zero percent, it will be a heavy burden for the office sector,” he said.
The government has projected economic growth to reach 2.3 percent this year, the lowest in 21 years, or a contraction of 0.4 percent in the worst-case scenario, as COVID-19 disrupts most economic activity.
The government initially set an economic growth target of 5.3 percent for 2020. According to data provided by Statistic Indonesia (BPS), the national economy expanded 5.02 percent in 2019, a decline from 5.2 percent in 2018.
