Jakarta, CNBC Indonesia \u2013 Buying an affordable apartment has\nincreasingly become a popular housing option in urban areas. However,\namid a growing number of cases in which apartment projects are not\ncompleted and are left abandoned, prospective buyers need to exercise\nextra caution.<\/p>\n
As quoted by detikProperti on Saturday (10 October 2026), Colliers\nIndonesia Head of Research Department Ferry Salanto said middle-market\napartments were a key target for buyers, who are relatively sensitive to\nprice. Even so, a low price alone can no longer be treated as a decisive\nfactor when buying an apartment, given the high level of risk.<\/p>\n
\u201cBuying an apartment is different from buying a product that is\nalready available, especially when buying at the pre-sale stage.\nConsumers are not just buying a unit; they are also buying the\ndeveloper\u2019s promise. That promise is whether the developer can complete\nthe project several years later, in line with the specifications and\nschedule provided,\u201d he said.<\/p>\n
The prevalence of delayed and even stalled apartment construction\nprojects in Indonesia has directly undermined prospective buyers\u2019\nconfidence. Buyers are therefore strongly advised to thoroughly check\nthe project\u2019s legality and land ownership before making a\ntransaction.<\/p>\n
\u201cAt the very least, consumers should look at several things. First,\nthe legality of the project and the land. They also need to monitor\nactual construction progress,\u201d he said.<\/p>\n
Prospective buyers should also investigate the developer\u2019s track\nrecord and carefully review the contents of the Sale and Purchase\nPreliminary Agreement (PPJB), particularly the handover deadline and\npenalties for delays.<\/p>\n
\u201cOn the other hand, if consumers have the financial means in the\ncurrent market, they could also consider a unit that is ready for\noccupation, a ready-stock unit, or a project that is further along in\nconstruction,\u201d Ferry said.<\/p>\n
\u201cFor first-time buyers, the principle is not just, in English, \u2018Can I\nafford to buy?\u2019 but, more importantly, \u2018Can I afford the risk?\u2019 Price\nremains important, but certainty over delivery and product quality\nshould be just as important,\u201d he concluded.<\/p>\n
Indonesia Property Watch CEO Ali Tranghanda said the main reason so\nmany projects were running into trouble was developers\u2019 lack of capital.\nThe cost of building an apartment, he said, could not be compared with\nthat of ordinary landed housing because it required enormous\nfunding.<\/p>\n
\u201cIt is indeed different from developing a landed project. Apartment\nprojects require substantial financial capacity and sound cash-flow\nmanagement to avoid work grinding to a halt midway,\u201d he said.<\/p>\n
Another factor fuelling the crisis is that demand remains far below\nthe supply of units on the market. The problem is compounded by selling\nprices that are too high for buyers\u2019 purchasing power, although the\nideal price for a middle-income apartment should be between Rp 300\nmillion and Rp 500 million.<\/p>\n
\u201cDemand is certainly not as large as the existing supply. Demand is\nclosely linked to apartment selling prices, which remain higher than the\npurchasing power of the urban middle class. The cheapest apartments\nshould be priced at around Rp 300 million to Rp 500 million, but market\nprices have already exceeded that,\u201d Ali said.<\/p>\n
Global Asset Management director Steve Sudijanto added that the\ncrisis had been worsened by developers who pressed ahead without\nobtaining construction permits.<\/p>\n
Some developers short of funds had even promised to build two\napartment towers despite having only Rp 25 billion to Rp 50 billion in\ncapital.<\/p>\n
\u201cProjects usually stall because developers insist on going ahead.\nThey have not obtained the permits, so construction grinds to a halt.\nDevelopers should not stubbornly push ahead just to make a profit in\nareas not zoned for apartment or commercial development. They press on,\nthen struggle to get permits, and the project stalls. Secondly, they run\nout of money. They loudly announce plans to build two apartment towers\nwhen they have only Rp 50 billion. There are developers with just Rp 25\nbillion who say they will build two towers, even though building an\napartment can cost hundreds of billions,\u201d Steve said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/beware-stubborn-developers-and-stalled-apartment-projects-how-to-avoid-regret-1791643850", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }