Jakarta condominium sales rise 74 percent

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.