Amid economy stagnation in 2017, the premium property market in Greater Jakarta was weakened as buyers preferred to buy or rent less expensive property.
Data from property consultant Jones Lang LaSalle (JLL) showed that grade A building rent had fallen by 1.7 percent quarter-on-quarter (qoq) in the fourth quarter of 2017.
In 2017, the occupancy rate of grade A buildings was 69 percent while the rates for grade B and grade C buildings were 86 percent and 91 percent respectively.
The condition was similar for the residence market, JLL Indonesia research head James Taylor said on Wednesday, adding that smaller apartments also had better sales than premium condominiums.
"We began to see some improvement in some types of smaller, cheaper apartments from noted developers," he said.
He added that projects such as Fifty Seven Promenade, developed by PT Intiland Development and launched in the third quarter of 2017, and Pakubuwono Menteng by the Pakubuwono Development launched in the fourth quarter, sold well due to good location and affordable prices.
For landed houses, Taylor said, customers also looked for smaller houses with two or three bedrooms with prices no more than Rp 2 billion (US$150,000).
However, both landed and vertical housing had seen weak sales in 2017. (bbn)