Greater Jakarta's housing market maintains its resilience

The Greater Jakarta's landed housing market thrives with wider options for buyers and more new development opportunities.

June 04, 2024

The landed housing market in Greater Jakarta remains a popular choice for both local and international developers and investors. With a healthy demand and continuing growth, this sector presents numerous opportunities for stakeholders.

Figure 1: Greater Jakarta landed house units sales rate as of 2H23

Source: JLL Indonesia, 2H23

Demand and growth hotspots

Within the landed housing market in Greater Jakarta, Tangerang takes the lead, contributing 52% of the total cumulative demand as of 2H23, followed by Bogor and Bekasi. Tangerang's attractiveness is attributed to its connectivity, reputable developers, and range of facilities, resulting in steady price growth. Notably, Bogor stands out with its connectivity and accessibility, while Depok thrives with ongoing developments. Bekasi retains its popularity due to its proximity to industrial estates, solidifying its position in the eastern region.

Tangerang has witnessed the collaboration between prominent local developers like Alam Sutera, Astra Land, Intiland, Ciputra and Sinar Mas Land, along with esteemed foreign companies such as Hankyu Hanshin, Hongkong Land, Mitsubishi Corporation, Mitsubishi Estate Residence, Mitsui Fudosan, and Mitbana (Mitsubishi Corporation and Surbana Jurong). These alliances have paved the way for exciting new joint-venture projects, showcasing the market's dynamic nature. Other developments in other locations like Citra City Sentul, Citra Garden Serpong, Grand Duta City, Kota Podomoro Tenjo, Paradise Serpong City 2, Paramount Petals, Park Serpong, Summarecon Bogor, and Summarecon Crown Gading, illustrate the sector's vitality. Furthermore, several quieter townships have experienced a revival through the introduction of new clusters, further invigorating the market.

Figure 2: Greater Jakarta landed house units sales rate by grade as of 2H23

Source: JLL Indonesia, 2H23

Today, buyers have a wide array of landed house options available that cater to various price ranges and family sizes. The affordability factor is playing a crucial role in driving successful sales, with a majority of units sold in 2H23 falling below the IDR 1.3 billion price range, predominantly in the lower to middle-grade segment. Figures 2 and 3 depict the current market offerings across Greater Jakarta, presenting unit types with land sizes ranging from 30 sqm to 300 sqm and building sizes from 22 sqm to 233 sqm.

Figure 3: Greater Jakarta landed house land size and building size range by grade as of 2H23

Source: JLL Indonesia, 2H23

Future outlook

To enhance affordability, developers provide attractive payment terms, longer mortgage periods, flexible down-payment instalments, and enticing promotional offers. Government incentives, including tax rebates and LTV programmmes introduced by banks, further boost accessibility. While the recent increase in Bank Indonesia's benchmark interest rate poses a consideration for future mortgage payments, the landed house market is expected to maintain an upward price trajectory due to its unwavering demand and popularity. With ongoing project launches aligning with buyer needs, the overall outlook for the landed housing market in Greater Jakarta remains positive, characterised by sustained demand and new launches.