The Apartment Business is Still Overshadowed by the Covid-19 Pandemic

The increasing number of Covid-19 cases and the government's implementation of the Emergency Community Activity Restriction (PPKM) continues to overshadow the apartment business in Jakarta.
A number of apartment projects have been delayed in completing and handing over units until the first semester of 2021. “Construction activities will be hampered because the Covid-19 cases are increasing again. It is estimated that many projects that have returned will have their handover schedule postponed," said Head of Research Colliers International Indonesia, Ferry Salanto, in a Q2 2021 virtual media briefing, Jakarta, recently. He explained, throughout 2021 there were seven apartment projects being worked on by developers and a total of 3,672 units, and only one project was handed over until the second quarter of 2021. Ferry said that the apartment market in Jakarta has continued to decline since 2016. The emergence of the pandemic caused apartment sales and launches to go into free fall until mid-2021. Ferry explained that the performance for strata title apartments compared to last quarter, there was a 63% decline in sales and only 155 units were sold out of 500 units offered in the second quarter of 2021. The uptake rate increased slightly although it was only 0.08% QoQ at 87.2% level. Regarding the government's VAT incentives in the apartment sector, said Ferry, until the second quarter of this year, the impact of the VAT incentive program has yet to be seen, especially in the apartment sector. However, the VAT incentive program is extended until December 2021 and is expected to be a sales catalyst in 2021. The selling price is expected to stagnate until the VAT incentive ends.

|•SOURCE•| Articles :INVESTOR | Image :BISNIS |

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