Apartment take-up rate in Jakarta dips to 87.8% in Q3

Newly launched apartments had a downward pressure on take-up rates.

According to a Colliers report, the Indonesian government has decided to extend the 100% VAT discount for property purchases (mainly for residential products), which had previously been reduced to 50% for transactions made between June and December 2024. 

The final prerequisite is that handovers must be completed by the end of this year. However, since the extension only took effect in September, its impact on sales performance for Q3 2024 may not yet be fully evident and is expected to be more noticeable in Q4 2024. 

Here’s more from Colliers:

Although transaction volumes during Q3 2024 were modest, we observed a positive sentiment, with many inquiries for existing apartments, reflecting the influence of the incentive. Moreover, projects currently under construction and scheduled for handover in Q4 2024 are likely to see more inquiries and improved sales, as they are now entitled to the 100% incentive, up from the previous 50%. All in all, we believe this extension will positively impact the apartment sector, driven by incentivized end-user demand with the 11% tax rate abolished. 

The overall take-up rate for the quarter stood at 87.8%, showing a slight decline of 0.1% QoQ and an increase of 0.2% YoY. This decline was largely due to downward pressure from newly launched apartments. As a result, the take-up rate for under construction units has continued its downward trend.