The Head of Research at Colliers Indonesia, Ferry Salanto, predicts\nan increase in apartment prices in the second half of this year.\n\u201cEspecially due to construction costs that are likely to rise as a\nresult of global factors,\u201d Ferry stated during an online press\nconference on Wednesday, 8 April 2026.<\/p>\n
For now, Ferry notes that apartment prices remain stable at around Rp\n36.2 million per square metre this year. The increase is expected in new\napartments, as an impact of global geopolitical pressures and rising\nmaterial prices.<\/p>\n
Regarding sales, Ferry reveals that the current apartment market\nstill relies heavily on the Value-Added Tax Borne by the Government (PPN\nDTP) facility. Ferry explains that the impact of this tax incentive has\nnot yet significantly boosted apartment demand. However, without PPN\nDTP, apartment demand would be even more limited.<\/p>\n
He also highlights changes to the PPN DTP facility this year compared\nto 2025. This year, the government is implementing 100% PPN DTP.\nPreviously, the government applied PPN DTP in two phases, with 100%\nincentive for the first six months and only 50% for the latter six\nmonths. The current flat tax incentive, Ferry says, provides greater\nroom for consumers to utilise PPN DTP.<\/p>\n
Colliers records that the total apartments absorbed throughout the\nfirst quarter of this year amounted to 206,000 units. Meanwhile, there\nare around 29,000 units yet to be absorbed, of which 27,000 are\nready-to-occupy. However, Ferry reminds that among the total units, 1%\nare luxury units priced above Rp 5 billion that cannot receive PPN\nDTP.<\/p>\n
For performance from the second to fourth quarters, Ferry estimates\n2,000 units will be sold. With first-quarter sales approaching 300,000\nunits and expectations until year-end, Ferry predicts total absorption\nthis year could match 2023\u2019s figure of 1,200 units. \u201cIn 2026, with\nstable macroeconomic conditions, apartment sales should be better than\nin 2024 to 2025,\u201d he said.<\/p>\n
Of total purchases, Ferry says demand is more absorbed in\nready-to-occupy units, while new projects tend to be held back and more\nabsorbed by upper-class consumers.<\/p>\n
Additionally, developers are focusing on promoting sales of old stock\nby offering incentives such as discounts up to 20%, free furniture, and\nlow-interest mortgages. Colliers notes that in the first quarter of this\nyear, there were only 192 new apartment units. \u201cDevelopers are now far\nmore selective. They are no longer aggressive in launching new\nprojects,\u201d Ferry said.<\/p>\n
The number of new units from 2020 to 2025 totalled 19,300 units. For\nthe period from 2026 to 2029, Ferry estimates the total units to be\nbuilt will only be around 3,100, averaging about 650 units per year.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/colliers-discusses-potential-apartment-price-increases-due-to-global-impacts-1775746254", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }