Consultant Reveals the Fate of Property in DKI If the Capital is Moved to IKN

Jakarta, CNN Indonesia -- Colliers Indonesia as a property consultant said that the development of the National Capital City (IKN) of the Archipelago has the potential to change property prices in Jakarta and create opportunities for changing the function of ministry/institution (K/L) buildings into residences.
Colliers Head of Advisory Services Monica Koesnovagril said that her party is still not sure whether property in Jakarta will be cheap if the center of government shifts to IKN. He emphasized that everything still depends on supply and demand in Jakarta.

"Even if that happens (property prices in Jakarta become cheaper or more expensive), it won't be in the short term. And if we are talking about Jakarta (property) prices will go up or down, that's the supply and demand that exists in Jakarta. So, price movements "You could say it doesn't depend on IKN," explained Monica in the virtual Fourth Quarter 2023 Media Briefing, Wednesday (10/1).

"So, we still can't say whether the price will go up or down. At least in the short term, it still depends on the current market," he added.

Colliers also discussed the opportunity to transform K/L buildings in Jakarta into residential areas. Monica said there are three main factors that need to be considered to make this idea a reality.

First, regulations. However, according to him, currently the urban planning of the abandoned ministry buildings is for offices.

Second, zoning or area mapping. Monica said the zoning of the ministry/institution building is for government offices, so it needs to be rethought if it wants to be converted into a residence.

Third, technically change it. He said there are many considerations that need to be studied carefully if you want to make the building a residence for residents.

"So, the answer is that it's not that easy if it is directly converted into a residence," he said.

"In fact, if for example you still want to (become) an office, there are also considerations from a regulatory perspective and you have to also calculate what the space requirements are. Indeed, there are plans like that, but it feels like it will be gradual because the supply at IKN is also gradual ," added Monica.

Monica also emphasized that the transfer of government officials to IKN would not be immediate and leave Jakarta empty. He said everything would be done in stages.
However, he did not rule out the option of turning the building into a residence. Although, its location in the middle of the city will be a special consideration.


https://www.cnnindonesia.com/economic/20240110132832-92-1047632/konsultan-besar-nasib-properti-di-dki-kalau-ibu-kota-di moved-ke-ikn