The Request For Tapak Houses In Jabodetabek Is Dominated By The Medium Segment

JAKARTA - Market demand for landed housing in Jabodetabek continues to increase in the first half of 2024, with demand for the dominance of the medium segment (Rp1 billion to Rp1.7 billion) which contributed 29.5 percent to the total demand.

Director, Strategic Consulting Cushman & Wakefield Indonesia, Arief Rahardjo, said at a press conference in Jakarta, Thursday, July 25 that the upper and upper middle segments contributed 25.8 percent and 25.5 percent of the total units sold in the first half of 2024, respectively.

The average absorption for each housing is 13.6 units per month, down 30 percent on an annual basis (yoy).

Tangerang leads with the highest average absorption per housing, which is an average of 15 units/month, followed by Bekasi 14 units/month.

"This decrease in absorption does not mean a decrease in market purchasing power, because indeed the supply this semester is less than last semester," he said, as reported by Antara.

Although the average monthly absorption rate per housing fell, Cushman & Wakefield data showed that the average transaction value per unit rose to IDR 2.45 billion, an increase of 18.4 percent compared to the first half of 2023.

This indicates an increasing demand for higher segment products.

On the other hand, the supply of new products launched in the first half of 2024 is less than the supply in the second half of 2023, with a total of 2,979 units marketed in the Greater Jakarta and Karawang areas. The current total supply is 432,724 units

Supply in Tangerang continues to dominate the market, covering 59 percent of the new offerings, followed by Bekasi by 22 percent.

In June 2024, the average land price in the Jabodetabek area reached around Rp. 12,540,852/m2, an increase from year to year of 0.9 percent.

Arief said that the increase in land prices was influenced by progress in various transportation infrastructures along the surrounding corridors.

According to Arief, the government's full VAT exemption incentives for the purchase of a new house under IDR 5 billion in June 2024 contributed to the low supply of new ones during the first half.

From July to December 2024, incentives will be reduced to a 50 percent VAT discount.

Therefore, the developer is now focusing on selling existing units or ready stock or issuing units that can be handed over before June 2024.