What are the issues that usually occur in big cities such as DKI Jakarta?
- Transportation issues, such as traffic congestion.
- Long commutes to work.
- High land prices.
- Low availability of housing for the middle-income class.
How could the TOD concept be the answer of the above issues?
- TODs provide a mixed-use site of residential, commercial and leisure facilities adjacent to a transport hub.
- Landed housing prices are high due to inflated land prices in the city. The development of housing should be in the form of high-rise residential and offered at an attractive price.
- High-rise residential in TOD could accommodate households with income between IDR8-20 million/month.
What are the investment prospects for investors?
- A private company could engage in a TOD project by utilizing assets belonging to the government.
- Unutilized buildings located around TODs can be converted and repurposed.
- Potential demand will be generated mostly by the residential component, facilitated by the retail component.
Download the Market Insights here to read the perspective of Colliers Indonesia Head of Advisory Services Monica Koesnovagril and Senior Manager Advisory Services, Apriyanto Rochmad Nugroho on Transit Oriented Development (TOD) Investment Opportunity in DKI Jakarta.
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