Jakarta premium apartment prices to rise by 1-2% over the next year

The increase is due to the potential for additional absorption.

The premium apartment market is expected to prove resilient going forward, driven by positive sentiment from potential buyers and tenants, said Savills in a report.

In addition, the growth of foreign investment, which tends to increase over time, is expected to encourage the expatriate market.

Here’s more from Savills:

End-users are expected to continue as the main demand generator, while the investor market should pick up after a political year. The profile of luxury apartment buyers is similar to luxury property collectors. They are not necessarily chasing returns but are end users, buying apartments for prestige and a sense of pride.

Regulatory reform will have a positive impact because it favors foreign and local investors. It is predicted that prices will continue to rise by 1% to 2% over the next year due to the potential for additional absorption.