Apartment Growth in Jakarta Over the Last 5 Years

According to a Colliers report, at the end of 2022 there were 220,451 apartment units in Jakarta.

Cumulatively, this number has increased by 9.23% compared to 2018. However, a more detailed breakdown reveals uneven annual growth.

In 2018, Jakarta saw an addition of 17,524 new apartment units compared to the previous year.

This was followed by a decrease in additional supply to 10,127 new units in 2019, 2,698 new units in 2020, 4,325 new units in 2021, and 1,484 new units in 2022.

"Since 2018, the annual supply of new apartment units in Jakarta has been steadily declining, especially during the pandemic years of 2020 to 2022, where the number of units added was significantly lower compared to previous years," said Ferry Salanto, Senior Associate Director of Colliers Indonesia, in a virtual press conference earlier this year (January 4, 2023).

Ferry explained that developers are currently hesitant to launch new projects due to a shift in apartment demand trends.

"Investors usually hunt for newly launched apartments because of their lower initial prices and the significant capital gain opportunities," said Ferry.

"However, in the second half of 2022, existing apartment units from completed projects were more in demand. Buyers felt that existing units were more secure. Although the prices might be higher, there's a guarantee that the project is completed," he continued.

Ferry also reported that in the fourth quarter of 2022, the occupancy rate of serviced apartments in Jakarta reached 61.2%, relatively stable compared to 61.1% in the fourth quarter of 2021.