IPW: Housing Market Up by 62.4%

Jakarta -Indonesia Property Watch (IPW) released a survey showing the housing market trend is expected to start on a promising path above 50%

Indonesia Property Watch (IPW) CEO Ali Tranghanda said after a slight decline in the first half of 2017, sales increase began to show in the second half of 2017 and is expected to continue until early 2018.

He said housing sales in the Jabodebek-Banten area reached 2,457 units in the fourth quarter of 2017 or an increase of 62.4% (qtq) with the highest increase in Banten as previously released by 124.6% (qtq), followed by Bodebek 3.5% (qtq).

Meanwhile, sales in Jakarta fall by 13.3% (qtq). Along with, the value of sales by 46% (qtq) in the fourth quarter of 2017 with an estimated transaction of Rp1, 08 trillion. The highest sales value was in Banten at 79% (qtq), followed by Bodebek 29.9% (qtq). The decline occurred in Jakarta by 7.7% (qtq).

“House demand in the segment of Rp300 million to Rp1 billion still dominates 44% of total home sales despite a decrease in composition from 46.1% previously,” said Ali through a press release on Friday (23/3/2018).

In addition, Ali went on to house Rp150 – Rp300 million with an increase in demand from 26.4% to 34.4% of total home sales until the end of 2017.

The decline occurred in the segment of subsidized homes that fall from 17.0% to 14.9%. The downward trend also occurred in the home segment at above Rp 1 billion from 10.3% to 6.7%.

Despite the increase, this sales level is still lower by 9.8% (yoy) compared to total home sales in 2016.

The decline that occurred in 2017 is more due to the drop in home sales that occurred in the first half of 2017.

However, the condition does not reflect the real housing market trend because it is more disturbed by the sensitive issues surrounding Jakarta elections that make the psychological impact for the market to slightly restrain the purchase of its property.

“Therefore, entering 2018 is predicted that the housing market will remain in an uptrend position and increase until the end of the first half of 2018,” said Ali.

This is also welcomed by several developers who have started launching new products in early 2018. So that the housing market in the I / 2018 is expected to be relatively more active than the previous year.

What do you think?

Written by DI

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