Trends In Search For Landed Houses Up 60 Percent During The New Normal Era

Illustration. (Photo: Unsplash)

JAKARTA - Indonesia's property industry has been badly affected since the outbreak of the COVID-19 outbreak. Many people choose to refrain from buying property. However, the trend of land search experienced a significant increase during the new normalcy.

Based on the results of research by 99 Group, during normal times it was noted that the trend of supply and search experienced a constant increase in May to June 2020. This shows that the hope for the property sector is getting better.

99 Group Indonesia Country Manager, Maria Herawati Manik, said that landed houses have always been the prima donna of searching among other property types. However, this cannot cover the fact that the search for houses underwent a correction at the end of the first quarter of 2020.

"Positive changes began to occur from April to May, there was an increase in searches of 60 percent. Meanwhile, in June the increase was still 50 percent," he said, in a written statement received by VOI, Friday, July 17.

Unfortunately, this increase in search is not accompanied by land supply which has experienced a drastic decline from January to February 2020 by 90 percent. The decline continued through February-March by 28 percent. Meanwhile, for the demand and supply of property prices at normal new times, 99 Group's research shows no fundamental changes.

According to Maria, property with a price of less than Rp. 300 million was the most sought after, at 30 percent. Meanwhile from the supply side, property with a price of Rp. 2 billion to Rp. 5 billion dominates with a percentage of 22.5 percent.

When compared to quarter by quarter, the search trend in the first quarter of 2020 is leaning towards properties with prices less than IDR 300 million. Entering the second quarter of 2020, there is an increase in searches on properties with a price range of Rp. 300 million to Rp1 billion.

"In terms of supply, there was an increase for property with a price range of Rp. 5 billion to Rp. 10 billion in the second quarter of 2020. From 6.4 percent to 10.4 percent. Then for property prices of less than Rp. 300 million decreased in the second quarter of 2020, from 18.3 percent to 14.9 percent, "he explained.

Maria said that there was a growth of more than 100 percent for the property search trend ranging in price from IDR 300 million to IDR 500 million from May to June. Meanwhile, in terms of supply, during the same period, properties with prices below Rp. 300 million rose 40 percent and properties ranging from Rp. 2 billion to Rp. 5 billion rose 50 percent.

"Property in South Jakarta was the most sought after during the new normal period of many cities in Indonesia," he explained.

Meanwhile, from a search perspective, the areas most targeted are South Jakarta 19.5 percent; Tangerang 16.5 percent; Bandung 15.4 percent; West Jakarta 9.4 percent; and East Jakarta 8.9 percent.

Most property supplies are found in cities, namely Bandung 22.2 percent; North Jakarta 17.7 percent; Surabaya 16.2 percent; Bekasi 10 percent; and South Jakarta 8.9 percent.

"When compared between April and June, the city of Bandung experienced the highest increase in property search, which was 5 times. Meanwhile, Tangerang and West Jakarta increased 3 times," he explained.