Jakarta Condominium Update

With the steady decrease in added new supply over the past four years, the cumulative total supply increased only slightly by 1.9% from the previous year to 221,691 units, representing an additional supply of 3,846 units in 2020. Existing supply remained dominated by the middle segment at 41.6% and the bulk of existing condominium stock was located in South Jakarta (29.6%) and a limited number in East Jakarta (11.4%).

As of the second half of 2020, the market experienced a slow pre-sales rate, recording at 57.7% and a substantial drop in thenumber of newly launched projects of only four projects during 2020. Activities in the market recovered slightly during the last three months of 2020 after lockdown measures were eased. Demand has hit an all-time low since 2014, representing only 4,551 units in 2020. Developers were concentrating on selling the remaining existing unsold inventory with additional discounts, longer payment terms and other incentives to attract potential end-user buyers, while also looking for opportunities in new growth areas and focusing on increasing their financial liquidity. With the delays on project completions and handover schedules during the lockdown period, these projects are expected to be delivered next year.