JAKARTA – Indonesia's property market has seen a resurgence, especially in the second half of 2024, with eight new projects launched in Jakarta and its surrounding areas, according to a report by PT Ina Sekuritas Indonesia.

Commercial property products, such as shophouses, have also seen significant demand, with much of it coming from the Food & Beverages (F&B) sector. According to Ina Sekuritas report, several property sector issuers have capitalised on this opportunity.

Earlier in the year, the property sector faced considerable challenges in attracting investors, as the industry was just recovering from the pandemic's impact in late 2023.

Some property issuers even managed to achieve 50% of their annual targets by the first half of 2024. Major players, such as PT Ciputra Development Tbk (CTRA), reached 55% of their annual targets in the first half.

“Shophouses, which combine residential and commercial functions, contributed 15-20% of total property sales,” Ina Sekuritas wrote in its report.

For shophouse sales, PT Bumi Serpong Damai Tbk (BSDE) emerged as the market leader, with one of its flagship projects, BSD City Township, offering units priced between IDR 1-3 billion.

Meanwhile, demand for landed houses remains strong, driven by cultural preferences. However, younger generations are gradually shifting towards apartment living.

Issuers like PT Pakuwon Jati Tbk (PWON) have also experienced growth in rental income from commercial properties like malls. In addition to expanding its reach outside Surabaya, PWON is developing new projects such as Agora Mall in Central Jakarta. (KR/ZH)

Read full report here.