Jakarta Apartment Developers in Slump, Buyers Shift to Landed Houses

JAKARTA - In the first quarter of 2026, the vertical housing sector, or apartments, in Jakarta remains stagnant. Developers are no longer competing to build new apartment projects but are instead shifting to landed houses, while some others are being more cautious and waiting. In-depth analysis from Leads Property Research Indonesia, Colliers International, and Cushman & Wakefield reveals a reality: Jakarta is entering an era of structural adjustment in supply that is highly selective. Although Colliers recorded limited handovers of 192 units in East Jakarta from the middle segment such as Belton Residence, this figure is merely a small fragment of the city’s total inventory, which reaches hundreds of thousands of units. Associate Director of Consulting & Research at Leads Property Services Indonesia, Martin Samuel Hutapea, views this phenomenon as a reflection of the imbalance between market price expectations and buyers’ purchasing power. “Buyers are now more inclined to look at landed houses in the suburbs that offer more competitive prices and building sizes,” Martin stated, as quoted by Kompas.com on Sunday (3/5/2026). However, he warns of the potential for project schedule shifts due to escalation in construction costs triggered by global geopolitical tensions. Although demand is growing moderately, the capital value of apartments in prime areas continues to show its dominance. This proves that projects in prestigious locations with maintained developer credibility still have price resilience amid a slowing market. The only catalyst keeping transaction pulses alive is the government-borne Value Added Tax (PPN DTP) policy, which applies fully throughout 2026. This policy provides certainty for buyers to absorb ready-to-occupy units.