Jakarta apartment take-up rate to remain at 88% in Q4

The apartment market is set to continue its sluggish performance.

In general, Jakarta’s real estate market experienced a relatively sluggish performance in Q3. According to Colliers, apartment sales dropped compared to the previous quarter, with only 145 units sold. 

Consequently, the average take-up rate for both existing and under-construction projects remained stable at 87.85%, demonstrating a modest increase of 0.04% QOQ and a 0.48% YOY increase. 

Here’s more from Colliers:

The take-up rate for under-construction projects has been on a declining trend over the years, mainly due to an increasing number of apartment projects being placed on hold. Furthermore, there is now less interest in purchasing under-construction projects, as individuals tend to have more confidence in completed or existing projects.

The current sluggish state of the apartment market is also mirrored by the ongoing economic instability and reduced consumer expectation, which has led to a decrease in confidence from property buyers. Consequently, the Consumer Confidence Index has shown a decline compared to the second quarter of 2023. 

One potential factor contributing to the waning interest in apartment purchases is the absence of government incentives specifically tailored for the apartment sector. Moving forward, sales growth is expected to exhibit marginal growth, consistent with previous years. The take-up rate is projected to remain in the range of 87-88% in the next quarter of 2023.