2023: Walking into headwinds
The apartment market in Jakarta in Q4 2022 was similar to the previous quarter, with no projects launched and performance remaining stagnant. Despite the efforts of developers to revive the apartment market with discounts and freebies, the sluggish economy, combined with a lack of government stimulus, dampened buyer enthusiasm for apartment units, particularly investor buyers. The only positive catalyst came at the end of 2022 from BI, which extended the loan-to-value ratio (LTV) easing until the end of 2023. Furthermore, the apartment sector faces several challenges in 2023 that could dampen an appetite to spend, including an increase in interest rates, which will inevitably raise mortgage rates, as well political tension risks. As a result, we encourage developers to continue offering appealing payment plans, innovative promotions, and, most importantly, to complete projects on time in order to attract potential buyers.
