ULOG: 23 "Apartment Sales Down, Delayed Groundbreaking Developer"

Img source : commnfloor.com

The sale of strata apartments in Jakarta shows a slowing condition, different from the condition of hotels in the Capital City which showed a positive performance in occupancy.

Homeland macro-economic conditions that are not good cause negative sentiment for developers. This can be seen from the report displayed by Colliers International Indonesia.

Initially, the developer confirmed that the supply of new apartment units until the end of this year reached 25,410 units. However, they are now revising the target.

"Because in the field the initial projections are all going to be heavy. Now there are only 19,883 units. Many of the projects finally postponed the groundbreaking, some even stopped sales," Ferry Salanto, Senior Associate Director of Colliers International Research Indonesia, said here on Wednesday (3/10 / 2018)

The same condition was also shown by the developer until 2020. In 2019, if previously it was targeted that there would be 20,234 new apartment supply units, it would now be corrected to 17,721 units.

While in 2020, the target was revised from 14,324 units to 12,829 units.

"So this is the phenomenon that is visible," he said.

The problem is, this decrease in demand has a long aftermath to the bid price. If previously in 2011 to 2014 the average increase in the offer price reached 16 percent per year, then in 2015 to September 2018 the price increase was only around 3 % per year.

This condition seems to have influenced the investor investors in buying property. They also choose to delay buying an apartment because the return on investment or the yield they get is considered less attractive.