Jakarta, CNBC Indonesia – The phenomenon of houses being sold out in elite areas such as Menteng, Pondok Indah to Kelapa Gading and Kemang is increasingly prevalent in the midst of a pandemic.
The impact of the pandemic has indeed made many people need money, to the point of having to sell valuable assets such as houses.
This phenomenon is recognized by broker associations in DKI Jakarta, to property observers, including brokers in the field. Those who are very aware of the condition that the used house market in elite areas is being ‘flooded’ in supply.
“Now there are many choices, many are willing to sell, everywhere people want to sell, the price will be corrected,” said DPD Chairman of the DKI Jakarta Indonesian Real Estate Brokers Association (AREBI) Clement Francis to CNBC Indonesia.
CEO of Indonesia Property Watch Ali Tranghanda explained that the phenomenon of rampant sales of luxury homes in DKI Jakarta has occurred since the second half of 2020. This has caused the price of second-hand luxury homes to decline at several points, especially in the Pondok Indah, Kelapa Gadung, and Pluit areas.
“Price corrections can reach 50 percent at some points, but they are not comprehensive. If it is comprehensive, the property market could crash,” said Ali.
This is about the trend because the pandemic has made many people need money, including the upper class, so the number of offers is increasing and the price is dropping, especially when it is over priced.
Price of Menteng Until Kemang ‘Fall’
C21 broker United Evert Niel said that at several points in the Menteng area the land price was almost Rp 100 million/m2 or more. Mainly in several strategic areas to shopping centers.
“Menteng, if you take the Sudirman route, it’s more expensive in the direction of Grand Indonesia. If you go back towards Manggarai, it starts to go down. The highest is Menteng-Menteng in that area. Some are Rp. 80 million/m. Not me, but a friend who sells it on Jalan Plaju is near Tosari. That’s IDR 80 million open, the house is still good,” said Niel.
Meanwhile in the Pondok Indah area, land prices here are expensive compared to other areas in Jakarta. However, when compared to Menteng, the tendency is still to lose, especially at strategic points.
“Pondok Indah Rp. 20 million to Rp. 30 million/m2 is still available, depending on the location, so it varies,” he explained.
Meanwhile, Jakarta Idaman Residential broker, Usmar Usman gave an example that houses in the Kemang and Prapanca areas of South Jakarta also experienced a sharp decline, for example from a price of IDR 20-30 billion, experiencing a sharp decline.
“The average range is 10-20%. Maybe it can go down to Rp 5 billion, it still makes sense,” he said.
He emphasized that the price reduction depends on the owner who sells. If the homeowner doesn’t really need cash, then sales will be more relaxed and wait for the right offer to come. The conditions are different if you are in need of money, then the price can be ‘slammed’.
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