Property Consultant Estimates Vertical Residential In DKI Jakarta Will Experience A Turning Point This Year

Illustration. (Photo: Doc. Antara)

JAKARTA - The property consulting agency Knight Frank Indonesia estimates that the condominium sector or vertical housing in the DKI Jakarta area will experience a turning point in 2022.

Senior Research Advisor Knight Frank Indonesia Syarifah Syaukat said that in general the prediction for the condominium sector in Jakarta would remain stable for sustainable growth conditions.

"How big will the turning point have implications for the revival of the condominium sector? We are still seeing what alarms will emerge in the next few months," Syarifah Syaukat said, quoted from Antara, Thursday 11 August.​​

He stated that Knight Frank Indonesia saw that the current conditions had entered a transitional era, but that did not mean that during this transition period the condominium sector could immediately recover like it was before the COVID-19 pandemic.

This, he continued, is because it is considered that there are still processes that need time to be absorbed by the market, including for consumers to follow up.

"If we look at signs such as economic growth, developer initiatives to resume their previously delayed projects due to the COVID-19 pandemic, and relatively thin market absorption, we still see that transactions in the condominium sector tend to be positive," said Syarifah Syaukat.

In the first semester of 2022 property market study report, Knight Frank Indonesia said that there were four new projects entering the condominium sector market in Jakarta, increasing the current total supply to 226,761 units.

In addition, he said, a total of 11,679 new units will enter the condominium sector market in the second half of 2022.

The level of condominium sales during the first half was in the range of 95.8 percent. Meanwhile, of the total existing units, there are 9,494 units that have not been sold to date.

In the midst of these conditions, there is still a new supply of 36,271 units that will enter the condominium sector in the next three years.

In general, regarding sales or sales performance of the condominium sector during the first semester, Knight Frank Indonesia still finds that the middle class segment is still the segment with the largest sales allocation.

"We saw in the first half of this year that the current condition is almost the same as the annual absorption, even though it is only the first half of 2022. We hope this year will be a turning point for the condition of the rising performance of the condominium sector," said Syarifah Syaukat.