Jakarta Condominium Update
With the unprecedented pandemic causing delays on project completions and handover schedules during the March-June 2020 period, the cumulative total supply only increased negligibly by 0.1% from the previous period to 217,845 units, representing an additional supply of 315 units in the first half of 2020. Existing supply remained dominated by the middle segment at 41.9% and the bulk of existing condominium stock was located in South Jakarta (29.4%) and a limited number in East Jakarta (10.9%).
The market experienced a slow pre-sales rate, particularly during the lockdown period, recording at 59.8% and a significant drop in the number of newly launched projects of only three projects in the first half of 2020. Many developers had announced that they would not be launching any new condominium projects and merely focus on selling existing unsold units with additional discounts, longer payment terms and other incentives to lure potential buyers.