Upper segment units remained as the majority new supply during the review semester with 27.5% share of the total supply, while the Middle segment followed closely with a share of 25.9%. Developers’ confidence in offering high-end houses which was observed in the previous semester continued, reflecting the market optimism.
The Greater Jakarta average land price was recorded at around Rp 12,438,119 per sqm as per December 2023, indicating a YoY increase of 1.6%. Various transportation infrastructure advancement were observed to lead to the increase of land price surrounding the affected corridors.
Outlook
The overall Greater Jakarta landed residential market is expected to improve in 2024. Several developers are gearing up to launch new products in the following year. The majority of the supply is expected to come from the Middle segment houses, targeting millennials and young families as well as the Upper segment houses, targeting more mature families.
Inflation that affects construction costs and the continuous infrastructure advancements in Greater Jakarta, including projects such as MRT, LRT, and toll road expansions which lead to land price increment, is anticipated to further increase the average selling prices of houses in 2024.
Nevertheless, developers are expected to remain active in launching new products in response to the sustained demand. Despite the market optimism and government’s offered of various incentives to boost demand, developers will continue with offering of various promotional strategies to drive sales
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services.
It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more.
For additional information, visit cushmanwakefield.com
