Jakarta, pelita.co.id – Demand for housing is predicted to continue to grow in the post-pandemic new normal. Locations for housing searches are projected to be closer to large cities or connected to mass transportation.
The uncertainty during the Covid-19 pandemic, which brought about the trend of working from home (WFH), led to a search for new and second-hand houses in areas far from the city center or large cities. Now, as the pandemic subsides and the trend of working from the office returns, the search for housing has the potential to shift back towards the city center or areas connected to mass transportation.
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The results of a survey by Colliers Indonesia for the Jakarta Central Business District (CBD) show that the return to working from the office has caused the percentage of employees returning to the office to reach 76% compared to the pre-pandemic period. During the pandemic, the percentage of employees working in offices in the CBD of Jakarta dropped to as low as 32%.
Ferry Salanto, Head of Research at Colliers Indonesia, said on Thursday (16/3/2023) that the trend of returning to work in the office is projected to push the search for housing closer to offices in the city center and housing that is connected to public transportation. With the current high level of congestion in Jakarta, people will increasingly prioritize predictable travel time from their homes to their offices.
Accessibility
Ferry added that property based on mass transportation (TOD) is considered prospective. Throughout the period of 2019-2022, the absorption rate of TOD-based apartments grew by 10%, while non-TOD apartments only grew by 4%. However, overall, the demand for the apartment market has not yet strengthened when compared to the landed house market. “The issue is how to make consumers start targeting apartments, have purchasing power, and are provided with ease of purchase,” he said.
A Flash Report released by the Property Platform 99 Group and Rumah 123.com showed that the demand for second-hand landed houses tends to continue to grow and is still dominated by the Jabodetabek region. The highest demand was recorded in Tangerang, which accounted for 13.2% of the total demand for landed houses in Indonesia in February 2023. The second most popular location was West Jakarta with a market share of 10.9%, followed by South Jakarta with 10.3%.
According to Senior Vice President Marketing 99 Group Indonesia Bharat Buxani, Jabodetabek is still a favorite region because it is supported by integrated accessibility infrastructure development and affordable and quality public facilities. This drives interest in owning property in this area to continue to grow positively over time.
“The consistency of property search interest in the Jabodetabek region is due to its position as the largest metropolitan area in Indonesia and the center of business and the economy,” said Bharat in a press release on Thursday (16/3/2023).
The average price per unit for a second-hand house in Tangerang with an area of less than 60 m² is IDR 699 million, for houses with a size of 61-90 m² is IDR 1.3 billion, for houses with an area of 91-150 m² is IDR 2 billion, for houses with an area of 151-250 m² is IDR 3.2 billion, and for houses with an area of over 251 m² is IDR 6.8 billion.
In South Jakarta, the average price per unit for a second-hand house with an area of less than 60 m² is IDR 699 million, for houses with a size of 61-90 m² is IDR 1.38 billion.
Based on the information provided, it appears that there is a growing demand for property in several cities outside of Java, such as Makassar and Denpasar, which has led to an increase in the price of second-hand homes. These cities have also experienced some of the fastest annual increases in property prices, along with Bogor.
Furthermore, Indonesia has been identified as one of the top 100 countries with positive growth for premium housing prices, and is also considered one of the top 20 countries for residential investment by high-net-worth individuals in the Asia Pacific region.
Senior Research Advisor Knight Frank Indonesia Syarifah Syaukat has stated that although the pandemic caused a temporary correction in premium property prices in Indonesia, prices have since strengthened, indicating a growing interest among investors in the Indonesian premium residential market.
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