Jakarta condominium sales rise 74 percent

The Jakarta Post, Jakarta

Condominium sales in Jakarta rose sharply in the second quarter of the year as several economic indicators showed better performance.

Property consultant Procon said a total of 324 units were sold in the second quarter of the year, up 74 percent from 184 units in the previous quarter.

The second quarter sales were four times higher than the second quarter of last year, which reached 84 units.

Procon, in its latest report, attributed the surge in the demand for the middle-upper class type of residence to improved consumer confidence in the economy in the second quarter of the year thanks to the strengthening of the rupiah, lower inflation, lower benchmark rate of the central bank, and the improvement in overall investment climate.

"In line with the decreasing interest rate, buying condominiums will be one of the attractive investment options," Procon said.

Demand was strong for both existing and pre-sales projects, it said. For instance, two pre-sales projects or projects still under construction, including Sudirman Mansion and Airlangga Residence in Mega Kuningan, which had recorded sales rates of above 90 percent and almost 100 percent respectively.

While interest in condominiums grew sharply in the second quarter of the year, consumers were still quite sensitive to prices. That was why some condominium owners offered promotional prices to attract buyers, Procon said.

Average condominium prices in Jakarta's central business district stood at Rp 13.7 million, or about US$1,654, and in Jakarta's prime residential areas, it stood at Rp 9 million.

"Demands for both existing and pre-sales projects will remain strong, but will be very sensitive to the price," Procon note, adding that regardless of the strong demand, the average price will continue to remain flat.

As of the end of June, there were 26,884 condominiums in the city, comprising 25,991 strata-title apartment units and 893 strata-title townhouses. Of the total, 5,343 units were still unsold.

In its report, Procon said other property sectors in Jakarta and its surrounding areas, including retail shops, rental apartments, hotels and the industrial sector, also showed better performance in the second quarter of the year.

However, the office sector has remained in the doldrums.