Jakarta –
Sluggish economic growth also impacts on various sectors, one of which is the such industry. Knight Frank’s property consultant shares the latest data on the growth of vertical housing in Jakarta.
In the first semester of 2025, data from Knight Frank showed that the current total apartment supply was 248,269 units. Then, there are an additional 1,208 new units from 4 projects in the Non-CDD (Central Business District) area.
Senior Research Advisor Knight Frank Indonesia Syarifah Syaukat said the average apartment sales in Jakarta ranged from 95.5%, decreased by around 0.4% compared to the same period last year. Meanwhile, the supply and clean demand of the apartment in the first semester of 2025 only around 1,000 units.
SCROLL TO CONTINUE WITH CONTENT
“In general, the supply is relatively increased although a little and so is the demand. We look at the level of sales or sales rates that are relatively stagnant since the pandemic period or since 2020. Indeed, the current market conditions are still sufficient challenging“Syarifah said in the Online Knight Frank Jakarta Property Highlights H1 2025, Thursday (8/21/2025).
Syarifah said that the sale of apartment units in Jakarta experienced his heyday in 2011-2017 with a sales rate which reached 98%. In fact, in that period the supply and clean demand of the apartment could reach tens of thousands of units per year.
From the Knight Frank data regarding the distribution of existing apartments based on class, the largest number is in the middle class (middle) of 43%. Meanwhile, the distribution of new apartments in Jakarta in the first semester of 2025 actually experienced a shift with its largest percentage in the upper class reaching 42%.
In addition, until mid -2025 it is predicted that there is no apartment project that will do new launching or re-launching. This happened because in the first semester of 2024 there were a number of new apartments whose construction process stopped.
Although property sales in the apartment sector are stagnant in recent years, Syarifah is optimistic that sales figures can increase in the following semester. This is inseparable from the 100% DTP VAT policy which was re -extended until the end of 2025.
“As we know that the DTP VAT is extended until the end of this year and as a whole is enough to help increase transactions and sales,” he explained.
If the DTP VAT continues to be extended by the government, Syarifah predicts that there will be 4,000 new apartment units in Jakarta until 2029.
“Then for Jakarta today until the next 2029 or 4 years, we predict that there will still be around 4,000 new units or 1.7% of the current supply,” explained Syarifah.
Meanwhile, Country Head Knight Frank Indonesia Wilson Kalip said the condominium market was still experiencing severe challenges in 2025. The absorption of the condominium project this year experienced a decline compared to the same period last year, although the Upper Middle and Middle segments were still seen moving.
Wilson said that the developer must understand the middle class segment in order to present appropriate products. That way, condominium sales can increase.
“Developers need to understand the middle class profile to continue to innovate to present products that can be absorbed by the market today. Not only related to the location and character of the product, but the middle class access to financial institutions needs to be widely opened to continue to move transactions,” he concluded.
(ilf/zlf)
