Colliers Discusses Potential Apartment Price Increases Due to Global Impacts
The Head of Research at Colliers Indonesia, Ferry Salanto, predicts an increase in apartment prices in the second half of this year. “Especially due to construction costs that are likely to rise as a result of global factors,” Ferry stated during an online press conference on Wednesday, 8 April 2026.
For now, Ferry notes that apartment prices remain stable at around Rp 36.2 million per square metre this year. The increase is expected in new apartments, as an impact of global geopolitical pressures and rising material prices.
Regarding sales, Ferry reveals that the current apartment market still relies heavily on the Value-Added Tax Borne by the Government (PPN DTP) facility. Ferry explains that the impact of this tax incentive has not yet significantly boosted apartment demand. However, without PPN DTP, apartment demand would be even more limited.
He also highlights changes to the PPN DTP facility this year compared to 2025. This year, the government is implementing 100% PPN DTP. Previously, the government applied PPN DTP in two phases, with 100% incentive for the first six months and only 50% for the latter six months. The current flat tax incentive, Ferry says, provides greater room for consumers to utilise PPN DTP.
Colliers records that the total apartments absorbed throughout the first quarter of this year amounted to 206,000 units. Meanwhile, there are around 29,000 units yet to be absorbed, of which 27,000 are ready-to-occupy. However, Ferry reminds that among the total units, 1% are luxury units priced above Rp 5 billion that cannot receive PPN DTP.
For performance from the second to fourth quarters, Ferry estimates 2,000 units will be sold. With first-quarter sales approaching 300,000 units and expectations until year-end, Ferry predicts total absorption this year could match 2023’s figure of 1,200 units. “In 2026, with stable macroeconomic conditions, apartment sales should be better than in 2024 to 2025,” he said.
Of total purchases, Ferry says demand is more absorbed in ready-to-occupy units, while new projects tend to be held back and more absorbed by upper-class consumers.
Additionally, developers are focusing on promoting sales of old stock by offering incentives such as discounts up to 20%, free furniture, and low-interest mortgages. Colliers notes that in the first quarter of this year, there were only 192 new apartment units. “Developers are now far more selective. They are no longer aggressive in launching new projects,” Ferry said.
The number of new units from 2020 to 2025 totalled 19,300 units. For the period from 2026 to 2029, Ferry estimates the total units to be built will only be around 3,100, averaging about 650 units per year.