Apartment Mortgages Gain Popularity as Consumers Abandon Investment Trend

JAKARTA - The dynamics of the vertical property market, or apartments, in Jakarta in the first quarter of 2026 show a significant shift in consumer behaviour. According to the latest research from Colliers Indonesia, the payment method through Apartment Ownership Credit (KPA) has recorded consistent growth in interest, shifting the dominance of cash transactions that were previously common in this sector. Head of Research at Colliers Indonesia, Ferry Salanto, stated that the stability of the Bank Indonesia reference interest rate (BI Rate) has become the main catalyst for prospective buyers to switch to bank financing facilities. “The stability of the BI Rate encourages consumer confidence. Currently, payments using the KPA method continue to increase because they are seen as more financially rational for buyers dominated by direct users or end-users,” explained Ferry, quoted by Kompas.com on Monday (13/4/2026). Data shows that the apartment market is no longer driven by investment speculation. There is a decline in the trend of purchasing units as pure investment instruments. On the contrary, the market is dominated by those buying to occupy. Development focus is now directed at the middle segment with price ranges of Rp25 million per square metre and the upper-middle segment at Rp34 million per square metre. Although building material prices are under pressure due to global geopolitics, selling prices in the market remain relatively stable because developers prioritise absorbing existing stock. Government policy in the form of Value Added Tax incentives borne by the government (PPN DTP) at 100% throughout the year provides legal and economic certainty for the market. This incentive directly directs consumer preferences towards ready-to-occupy units (ready stock). The absorption of ready-to-occupy units contributes around 60% of total transactions in the first quarter. Facing the market adjustment phase, developers are being selective in launching new projects. Annual supply has been recorded to decrease drastically by up to 80% compared to the 2020–2025 period. Currently, developers are offering more creative stimuli to maintain sales momentum, including: Performance in the fourth quarter is projected to exceed early-year achievements along with the completion of several strategic projects, especially in South Jakarta and the central business district (CBD) areas, which still control 60% of the total new supply this year.