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Residential Real Estate Market in Indonesia - Growth, Trends & Forecasts (2020-2025)
The residential real estate market in Indonesia is segmented by Type( condominiums,villas and others), key cities and other urban ,suburban and rural markets.
- ABOUT THIS REPORT
- Market Snapshot
- Market Overview
- Scope of the Report
- Key Market Trends
- Competitive Landscape
- Major Players
- TABLE OF CONTENTS
Market Snapshot
Study Period:
2016-2025
Base Year:
2019
CAGR:
17.63 %
Major Players:
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Market Overview
- Indonesia’s real estate market is expected to grow at a CAGR of 17.63% during the forecast period. The demand for housing market in Indonesia is expected to be driven by the country’s favorable demographic composition, rising urbanization, increasing per capita income of people and a significant young population in the country emerging as first-time home buyers in near to middle term. Meanwhile, more developers are focusing on building affordable apartments in the mid-low segment to target genuine homebuyers. This has also intensified the competition amongst such products and is expected to continue in the near term.
- The Indonesian government also introduced One Million Houses (OMH) programme with a goal of constructing at least 1million units per year, and nearly 1.13million houses have already been built in 2018 as part of efforts to reduce the country’s current housing backlog. The one million housing programme intends to address a lack of investment in the property market and to reduce the 7.6million shortfall in housing to 5.4million by this year.
- The demand for residential property, both in landed houses and vertical housing, is expected to increase further after the government’s infrastructure projects, i.e. mass rapid transit (MRT), light rail transit (LRT), TOD (transit-oriented development) in commuter line stations, and new toll roads that are likely to be completed in 2019.
Scope of the Report
This report aims to provide a detailed analysis on the Indonesian residential real estate market. It focuses on the market dynamics, technological trends, insights and government initiatives taken in the residential real estate sector. Also, it analyses the key players present in the market and the competitive landscape in the Indonesia residential real estate market.
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Key Market Trends
Jakarta emerging as a prime rental market
Despite the rapid growth of Indonesia's property market in recent years, houses and apartments are still among the cheapest in the region. As per market estimates, the average price for a 120 square-metre property in Jakarta is USD 2,692 per square metre which is way cheaper than the prime locations of Malaysia, Cambodia and the Philippines and Thailand.
Increasing disposable incomes and migration of Indonesians to Jakarta in search of better employment, is making Jakarta an attractive rental market for both buyers and investors. As per reports Indonesia is amongst the list of countries where buy-to-let property earns the highest returns with an excellent typical gross rental yield of 8.9% per annum in the year 2019.
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Rising residential property sales in the country
As per estimates the residential property sales in Indonesia increased by nearly 20.15% y-o-y in the first half of 2018, sharply up from a decline of 34.53% in 2017. Small properties led the demand surge followed by medium houses and big houses. In order to meet the property demand, the Indonesian government has adopted several measures such as decreasing the key interest rates, giving tax incentives to Indonesian REITs, eased restrictions on individual foreign ownership and increased loan-to-value ratios.
The government has also increased the price threshold for luxury property taxes to encourage home buying in Indonesia. The 20% tax will now be applied only to any purchase of a landed property or apartment worth at least 30 billion rupiah (USD 2.10 million). Some of the major apartment projects which were completed in 2018 were Ciputra International (San Francisco Tower) by Ciputra Developers, Lavie Suits by Wilsor Group and Nine Residences by Lippo Group.
To understand geography trends, Download Sample Report.
Competitive Landscape
The Indonesia residential real estate market is highly competitive. The market is highly fragmented. Some of the major players present in the market include Agung Podomoro Land, Sinar Mas Land, Ciptura Group and Tokyu Land Indonesia. The players are also adapting to technological trends owing to rising internet penetration and increasing expansion of e-commerce.
Table Of Contents
1. Introduction
1.1 Study Assumptions
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Insights
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Residential Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights
4.3 Government Initatives, Regulatory Aspects for Residential Real Estate Sector
4.4 Insights on size of real estate lending and loan to value trends
4.5 Insights on interest rate regime for general economy, and real estate lending
4.6 Insights on rental yields in residential real estate segment
4.7 Insights on captial market penetration and REIT presence in residential real estate
4.8 Insights on affordable housing support provided by government and public-private partnerships
4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)
4.10 Market Dynamics
4.10.1 Drivers
4.10.2 Restraints
4.10.3 Opportunities
4.10.4 Challenges
5. Market Segmentation (2016-2019) and future outlook
5.1 Quantitative and Qualitative Commentary on Supply and Demand (Condominiums, Villas, Others)
5.2 Quantitative and Qualitative Commentary on Supply and Demand (Key Cities)
5.2.1 Jakarta
5.2.2 Greater Surabaya
5.2.3 Semarang
5.3 Quantitative and Qualitative Commentary on Transaction Volumes (covering property types and key cities, other urban, sub-urban and key rural markets
6. Competitve Landscape
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Agung Podomoro Land.
6.2.2 Lippo Homes
6.2.3 Sinar Mas Land
6.2.4 Ciputra Group
6.2.5 Duta Anggada Realty
6.2.6 PP Properti
6.2.7 Tokyu Land Indonesia
6.2.8 JABABEKA
6.2.9 PT Pakuwon Jati
6.2.10 Binakarya Propertindo Group
7. Future of the Market and Analyst Recommendations
8. Disclaimer
9. About Us
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