Capital City Moves to Kalimantan, Jakarta Property What Will Happen?
Jakarta - Next year, the capital city of Indonesia will move from Jakarta to the National Capital (IKN) of the Archipelago in East Kalimantan. Will this affect apartment sales in Jakarta?
According to JLL Indonesia's Head of Research, Yunus Karim, the move to the capital city will not necessarily affect the property market in Jakarta, especially apartments. According to him, the apartment market will still exist in the future because apartments are still considered as a product for investment plus there will be end users or buyers who will occupy the apartments.
"It depends on how many will move (to IKN) because we know this is in stages, yes, the government has indeed launched a program to move to the capital city of Kalimantan but from year and in the short term, in the near horizon we have not seen this have a significant impact to the property market in Jakarta," he said at the Jakarta Property Market Overview Q2 2023 press conference, Tuesday (25/7/2023).
Indeed, currently the cumulative sales of apartments in Jakarta are still relatively stagnant at around 61%. This is not much different from selling apartments 4-5 years ago.
"Usually apartments are used as an investment instrument and currently what is happening is that many buyers wait and see regarding the existing investment conditions and indeed those who are still active in looking for apartments are those for living or end users. So in terms of demand it is still relatively soft," said Yunus.
Currently, apartment projects that are of concern to prospective buyers are those that have good locations and access, then developers who have shown a commitment to complete the construction of apartments, and have competition (price) that is not too high. One way to increase apartment occupancy, the rental prices offered also tend to be similar, aka there has been no increase over the last few years.
"Developers who finally show their commitment or sell attractively, for example having a show unit by giving an idea to buyers what kind of concept will be applied to their apartments in the future, are more attractive to buyers," he said.
Going forward, according to Yunus, end users will be more active in buying apartments in Jakarta. Currently, around 31,500 apartments are marketed in Jakarta.
https://www.detik.com/properti/berita/d-6840241/ibu-kota-transfer-ke-kalimantan-properti-jakarta-gimana-nasibnya
According to JLL Indonesia's Head of Research, Yunus Karim, the move to the capital city will not necessarily affect the property market in Jakarta, especially apartments. According to him, the apartment market will still exist in the future because apartments are still considered as a product for investment plus there will be end users or buyers who will occupy the apartments.
"It depends on how many will move (to IKN) because we know this is in stages, yes, the government has indeed launched a program to move to the capital city of Kalimantan but from year and in the short term, in the near horizon we have not seen this have a significant impact to the property market in Jakarta," he said at the Jakarta Property Market Overview Q2 2023 press conference, Tuesday (25/7/2023).
Indeed, currently the cumulative sales of apartments in Jakarta are still relatively stagnant at around 61%. This is not much different from selling apartments 4-5 years ago.
"Usually apartments are used as an investment instrument and currently what is happening is that many buyers wait and see regarding the existing investment conditions and indeed those who are still active in looking for apartments are those for living or end users. So in terms of demand it is still relatively soft," said Yunus.
Currently, apartment projects that are of concern to prospective buyers are those that have good locations and access, then developers who have shown a commitment to complete the construction of apartments, and have competition (price) that is not too high. One way to increase apartment occupancy, the rental prices offered also tend to be similar, aka there has been no increase over the last few years.
"Developers who finally show their commitment or sell attractively, for example having a show unit by giving an idea to buyers what kind of concept will be applied to their apartments in the future, are more attractive to buyers," he said.
Going forward, according to Yunus, end users will be more active in buying apartments in Jakarta. Currently, around 31,500 apartments are marketed in Jakarta.
https://www.detik.com/properti/berita/d-6840241/ibu-kota-transfer-ke-kalimantan-properti-jakarta-gimana-nasibnya
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