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Greater Jakarta housing market resilient, but retail property down in 2020: JLL
The last year saw the Greater Jakarta real estate market showing strong residential sales, but the retail property market suffered from the economic slump due to the COVID-19 health emerency, with market saturation forecast for 2021.
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Two neighbors wave at each other from their balconies at a training center that has been converted into a COVID-19 quarantine facility, on May 28, 2020 in Tangerang, Banten. Although the region was designated a coronavirus "red zone" until Feb. 8, 2021, it recorded the highest residential property sales last year, according to Jones Lang LaSalle data. (REUTERS/WIlly Kurniawan)
T
he Greater Jakarta residential property market has remained strong amid the economic downturn of the COVID-19 health crisis, while the retail property market took a hard hit from repeated extensions and frequent changes to the government's restrictive policies, says property consultancy Jones Lang LaSalle (JLL).
JLL said at a virtual press briefing on Wednesday that the residential property market recorded a supply of 16,000 new houses in 2020, the highest since the consultancy started collecting data in 2017. Residential sales reached 13,000 houses with a sales rate of 72 percent, higher than the 63 percent rate for condominiums in Greater Jakarta.
The majority of houses sold in 2020 fell within the Rp 600 million (US$42,901.32) to Rp 1.3 billion price range, had two to three bedrooms and were located in the satellite city of Tangerang, Banten province.
JLL head of research Yunus Karim said developers with broad tracts of land shifted their focus to building residential homes, including by partnering with foreign developers.
“Landed houses have been [resilient to] the pandemic because Indonesia has socioeconomic potential that lures both domestic and foreign investors to develop landed houses here,” Yunus told Wednesday's press briefing.
“This is also because buyers with usage intent, or end users, are more active than [buyers] with an intention to invest,” he added.
The public health emergency has negatively affected the domestic property market, with the latest Bank Indonesia survey showing that combined sales of small, medium and large houses slumped 30.93 percent in the third quarter last year, a sharp contrast from third-quarter growth of 13.95 percent recorded in 2019.
