Indonesian Homeownership Figures Show Dramatic Slump

[ASEAN NOW News]

Despite increasing supply, Jakarta still has the lowest rate of homeownership in the country, according to a recent report in the Jakarta Post.

 

photo: REUTERS

 

As workers flock to the capital to find jobs, homeownership in Indonesia has been dropping since 1999, as workers find house prices have risen.

 

Now, the affordability of homes is under further threat, as a number of people face declines in real income as a result of the pandemic.

 

The national share of households with a home of their own fell to just over 80 percent last year from nearly 85 percent in 1999, according to data from Statistics Indonesia (BPS).

 

Jakarta recorded the lowest share last year. The fall in Jakarta homeownership is in line with the share of households renting a home in the city, at 37.71 percent last year, higher than any other province, as workers flock to the capital to find jobs.

 

Although some provinces ended up with a higher homeownership rate after the first 20 years of the century, Jakarta posted the steepest decline between 1999 and 2020.

 

Realtors Q1 Report

 

According to a report on Q1 2021 from realtors Colliers, some developers started to introduce their new projects in Q1 2021. Unfortunately, the demand growth in the market remains sluggish, making it hard to revise the asking prices.

In addition, the government set out some stimuli for the residential property sector, including the property relaxation norm from the Central Bank coupled with the foreign ownership regulation, which will bode well for developers and property demand.

 

photo: REUTERS

 

Also, the Colliers reports stated that the VAT waiver will be beneficial for upgraders as well as developers who still have unsold inventories.

 

All in all, Colliers were of the view this year will remain a buyer’s market, and there will be a gradual yet moderate recovery in the market.

 

Meanwhile with the pandemic playing havoc in most business sectors, the chances of the homeownership in the country decreasing further is a strong possibility.