Colliers Indonesia Sees Rising Apartment Prices Amid Global Pressures

TEMPO.CO, Jakarta - Head of the Research Department at Colliers Indonesia, Ferry Salanto, predicts an increase in apartment prices in the second half of this year. "Especially due to construction costs, which are likely to rise due to global factors," Ferry said in a virtual press conference on Wednesday, April 8th, 2026.

Currently, Ferry notes that apartment prices have remained stable at around Rp 36.2 million per square meter this year. The increase in prices of new apartments is expected to occur as a result of global geopolitical pressure and rising material costs.

Regarding sales, Ferry revealed that the current apartment market still depends significantly on the Value Added Tax on Government-borne Land and Building Tax (PPN DTP) facilities. Ferry explained that the impact of this tax incentive has not significantly boosted apartment demand. However, without PPN DTP, the demand for apartments will be more limited.

He also highlighted the changes in PPN DTP facilities this year compared to 2025. This year, the government is implementing 100 percent PPN DTP. Previously, the government implemented two phases of the PPN DTP. For the first six months, participants received a 100 percent incentive. For the last six months, participants received only 50 percent. The current flat tax incentive, Ferry said, provides greater flexibility for consumers to take advantage of PPN DTP.

Colliers recorded a total of 206,000 absorbed apartments in the first quarter of this year. Meanwhile, around 29,000 units remain unsold, 27,000 of which are ready for occupancy. However, Ferry cautioned that 1 percent of these total units are luxury units priced above Rp5 billion and are not eligible for PPN DTP.

Ferry estimates that 2,000 units will be sold in the second to fourth quarters. With first-quarter sales approaching 300,000 units and year-end expectations, Ferry estimates that total absorption could reach 1,200 units this year, the same as in 2023. "In 2026, with a stable macroeconomic condition, apartment sales should be better compared to 2024 to 2025," he said.

Ferry said that more demand is absorbed by ready-to-occupy units of the total purchases, while new projects tend to be restrained and are absorbed more by upper-class consumers.

In addition, developers are more focused on pushing the sales of old stock by offering incentives such as up to 20 percent discounts, free furniture, and low-interest mortgage loans. Colliers noted that only 192 new apartment units were built in the first quarter of this year. "Developers are now much more selective. They are no longer aggressive in launching new projects," said Ferry.

From 2020 to 2025, the number of new units is recorded at 19,300. Ferry estimates that only about 3,100 units will be built from 2026 to 2029, averaging around 650 units per year.

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