Jakarta apartment stock expected to grow by 2.5% in 2024

The city currently has 226,815 units in stock.

In a recent report, Colliers noted that two new apartment projects were introduced in Jakarta, namely Edensuite Casablanca and LRT City Tebet – The Premiere MTH (Lotus Tower). Both developments are located in the Tebet District of South Jakarta, collectively offering a total of 434 units. 

The Premiere MTH is designed with a One-Stop Living concept, featuring office spaces, commercial areas, and residential units within a single tower, all integrated with various mass transit options, including the LRT, Commuter Line, and BRT stations. In contrast, Edensuite Casablanca focuses exclusively on residential living and includes a connecting bridge that provides direct access to the Kota Kasablanka Mall.

Here’s more from Colliers:

Similar to the previous quarter, no new apartments were completed, maintaining the total apartment supply in Jakarta at 226,815 units. Of the 8,452 units currently under construction, 56% are anticipated to be delivered in Q4 2024, with the majority expected in December. We expect that the cumulative supply in 2024 will be 2.5% higher compared to 2023. 

With the introduction of the new tower in the LRT City project and marking a year since the Jabodebek LRT began operations, we have identified several projects situated along the existing LRT line. This trend emphasizes the growing appeal of transit-oriented development, which is steadily gaining attention from both investors and homebuyers. For instance, the newly launched tower at The Premiere MTH has successfully sold over ten units within a single month. 

Based on our on-the-ground observations, most of these projects are still in the construction phase, despite having been launched for some time. While plans for multiple towers exist, the construction of these additional towers is expected to take a considerable amount of time to commence. 

This delay may also be linked to the absorption rate, which has not demonstrated significant improvement since the LRT became operational. The discrepancy between expectations and the current status of the projects may contribute to the relatively slow absorption rate, as potential buyers may hesitate to purchase due to delays and a lack of immediate availability. 

Buyers of apartments along the LRT line are primarily investors. The types of units typically range from studios to two-bedroom apartments, making these smaller units well-suited for professional workers who rely on the LRT for their daily commute. Consequently, the area presents strong potential for rental and capital gain opportunities.