Many Rich People Sell Luxury Homes During A Pandemic: Menteng And Pondok Indah Over Supply

Illustration (Photo: Doc. Antara)

JAKARTA - Rumah.com Country Manager Marine Novita said sales of luxury homes in the elite areas of Pondok Indah and Menteng, Jakarta experienced an increase during the COVID-19 pandemic. This causes the supply of luxury homes in the capital city to be oversupplied and lowers the selling price.

In his notes, the increase in supply in the Menteng and Pondok Indah areas has occurred since the second semester of 2020. Entering the 2021 period, there is still an increase in supply but the rate of increase is not as high as the previous year.

“The decline in residential prices in the two areas appears in line with the increase in supply since last year. The rate of price decline was reduced, even persisted at the end of 2020 but fell again in the first quarter of 2021," he said in a press statement as quoted on Saturday, July 10.

Marine added that in conclusion, more and more homeowners really want to sell houses in the two areas, but until now many have not been sold so that house prices continue to decline.

Furthermore, according to data from the Indonesia Property Market Index during the second quarter of 2021, house prices in a number of areas of DKI Jakarta decreased evenly in the range of 0.44 percent.

"The decline in the price of luxury housing has indeed occurred, but most likely the owners are still able to hold it so they won't just sell out," he said.

On the other hand, property searches in the Greater Jakarta area are still dominated by landed house searches, which is 90 percent, with the most popular search location being South Jakarta (24 percent).

Then, the most desirable price range comes from the range of Rp. 300 million to Rp. 750 million (27 percent). Meanwhile, if it is accumulated, the majority of searches want housing below IDR 1 billion (56 percent).

“For those who are looking for property to invest in, this opportunity is actually more visible in downtown areas with affordable price ranges, such as Cempaka Putih, Central Jakarta, where supply and price movements are more dynamic and easier to observe. In addition, the price per meter is still more affordable, almost a third of the Menteng area," Marine concluded.