Jakarta Residential

Asian Cities

2H 2017

 

Economic overview
Jakarta is Indonesia’s economic powerhouse, priding itself on being the nation’s main commercial, political and business hub. Jakarta follows a similar trajectory to Indonesia’s GDP growth rate and has even historically maintained figures higher than Indonesia. Its annual GDP growth rate for the second quarter of 2017 sat at 5.96%, outperforming Indonesia’s result of 5.01%. Such performance is due in large part to the city’s improved household consumption in light of an overall optimism in an accelerating economy. In fact, Jakarta’s consumer sentiment index for the second quarter of 2017 reached 116.97, a positive improvement from the first quarter result of 100.84.

The shift in urban living
Jakarta’s social inequality gap is rather substantial, and this is evidenced through the extensive choice of housing types available in the market. However, due to rapid land price increases and scarcity of land in the city, new developments in Jakarta over the past decade have been dominated by high density vertical housing (i.e.apartments). In the beginning, this trend presented a challenge, as many Jakartans were still inclined to live in landed houses, a tradition prevalent throughout nation. Consequently, the city underwent an urban sprawl where housing developments were extended into the outskirts of Jakarta, an area collectively called as Bodetabek.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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