The property sector in Indonesia is showing positive growth in 2024, with a 6% increase from last year. This is evident from the rising property sales in the capital city Nusantara (IKN), where sales reached 150 units from an initial 50 units. According to Hendra Hartono, CEO of Leads Property, the latest data reveals that in the first quarter (Q1) of 2024, investments in the property sector amounted to IDR 29.4 trillion, marking a 6% increase compared to the same period in 2023. Overall, investment value in Indonesia grew by 22% compared to Q1 of the previous year. The property sector contributed 7% to the total national investment of IDR 401.5 trillion. Key sectors driving property growth this year include landed houses, retail, and industrial and logistics sectors. Landed houses continue to dominate the residential sector in Indonesia, outperforming condominiums in sales. "The landed house sector outperforms condominiums. Among the three (landed houses, retail, industrial, and logistics), low-rise properties perform better, while high-rise properties are not performing as well," said Hendra Hartono in an interview with detikProperti.
Furthermore, Hendra, who is also a jury member for the Indonesia Property Award 2024 organized by PropertyGuru, stated that the retail sector has seen a significant increase in visits to shopping malls compared to the COVID-19 pandemic period. The industrial and logistics sectors also experienced growth, primarily driven by increased activities in data centers and the automotive industry. "Malls have high occupancy rates, proven by the increased number of visitors compared to the COVID-19 pandemic. The logistics sector is driven by data centers and the automotive industry." The Jabodetabek region (Jakarta, Bogor, Depok, Tangerang, Bekasi) remains the area with the most significant property sector growth. This is due to Jakarta and its surrounding areas continuing to dominate Indonesia's economic activities. Although there is an increase in property activity in IKN, Hendra Hartono noted that its impact on the overall property market remains limited. Jakarta is predicted to remain the primary business and financial center in Indonesia, maintaining its position as the country's economic hub.
