Jakarta is the largest player in Indonesia’s apartment market, accounting for around 41.2% of the country’s total stock. Among this, premium and upper luxury apartments make up about 17.5% of the market, according to a report by Savills. The city’s strategic location, strong infrastructure, and affluent population, coupled with a steady demand from corporate professionals, have solidified Jakarta as a prime target for luxury residential investments.
Premium Apartments in Jakarta
The average price of premium apartments in Jakarta is ≥IDR45 million per square meter. These apartments are typically large, ranging from 100 to 200 square meters, and are located in the Central Business District (CBD), catering primarily to the expatriate market. Amenities include lush gardens, sports facilities, an Olympic-sized swimming pool, spa, sauna, karaoke or mini cinema, valet services, high-security systems, and advanced air filtration systems.
The reputation of developers plays a crucial role in this segment. Buyers are more likely to invest in properties from well-established developers with a proven track record in delivering high-end residences with exceptional services. Leading developers such as Astra Land, Djarum Group, and Intiland have successfully catered to this market.
Demand and Market Trends
Between 2017 and 2019, Jakarta’s premium apartment market saw strong demand, fueled by the completion of several high-end projects, such as La Vie All Suite, Verde Two, and Pondok Indah Residence. However, during the COVID-19 pandemic, the market experienced a significant slowdown as buyers shifted their focus toward liquidity rather than property investment.
After the pandemic, the market underwent a supply correction in 2021 and 2023, with several premium apartment projects in the CBD being canceled due to failing to meet pre-sale targets. During this period, a VAT exemption policy for ready-stock properties priced below IDR5 billion encouraged buyers to opt for more affordable, move-in-ready units, putting pressure on the premium segment.
Recovery and Outlook
The relaxation of property ownership regulations for foreign nationals in recent years has helped to revitalize the premium apartment market. This change has expanded the pool of potential buyers, boosting developer confidence and increasing absorption rates for new projects.
Despite a price correction during the pandemic, the average price of premium apartments in Jakarta has steadily risen since 2021. As of 2024, the average price stands at IDR50.9 million per square meter, marking a 1.8% increase compared to the previous year.
To maintain sales volumes, developers are offering attractive incentives, such as free furnishing vouchers, discounts, reduced booking fees, free golf memberships, and tax exemptions. These measures, coupled with a growing interest from foreign buyers and corporate executives, are expected to stabilize the market and drive demand for premium apartments in the coming years.
Conclusion
Jakarta’s premium apartment market is showing signs of recovery after the pandemic-induced slowdown. With increasing demand from both local and international buyers, strategic infrastructure development, and favorable government policies, the market remains an attractive investment opportunity for those seeking high-end residential properties in Indonesia’s capital.
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