Going South, Some of the best residential investments can be found in Jakarta’s southern half.
Source: Forbes Indonesia, April 2012, Volume 3 Issue 4, Page 72, INVESTING, by Pudji Lestari and Ardian Wibisono
Jakarta’s property market, along with the rest of the economy, is booming, with the prices for residential housing in many prime locations up by at least 10% last year, sometimes as high as 20%. The residential market, defined as landed houses, condos and apartments, is doing especially well in the southern end of Jakarta. Areas popular with expatriates, such as Kemang, Kebayoran, Pondok Indah and Jalan TB Simatupang have seen significant price gains as they are close to international schools and also are relatively close to Jakarta’s main business districts.
Rental prices in these areas on the rise, which in turn drives sale prices, says residential investment specialist Eka Heru Djunaeni, associate director of property consultant Colliers Indonesia. “In Kemang, land prices last year were Rp10 million per square meter on average, not including the building, but now they are already asking for Rp12 million for the best spots,” Eka says.
Aside from the more developed areas such as Kemang, investors can also look at some newer areas being developed. The Bumi Serpong Damai (BSD) is one example where residential developments are being developed to meet demand from new corporate residents such as PT Freeport Indonesia and PT Unilever Indonesia, which are setting up their offices there. Another growth are is Alam Sutera, which also happens to be near BSD.
To escape the traffic jams, residential developments downtown are also growing in popularity and price, in areas near business avenues such as Gatot Subroto, Thamrin and Sudirman, notes Arief Rahardjo, associate director of property consultant Cushman & Wakefield.