Summary

The niche property market, particularly villas, is proving to be stronger than mainstream properties in Indonesia. According to Agung Krisprimandoyo, Director of PT Ciputra Development Tbk, villas are typically used as second homes or places to entertain guests, and therefore have a different sales trend than regular homes. The dynamics of Indonesia's economy have shifted with the growth of the middle class, and this has led to an increase in demand for holiday homes. This trend has not been affected by the pandemic, and developers continue to launch new villa products. The villa market is more focused on lifestyle than assets, and consumers are reluctant to buy ready-to-live-in villas that have the same design as their neighbours.
Agung Krisprimandoyo also stated that villa sales do not depend on value-added tax (VAT) stimulus, but rather on low-interest rates and the availability of bank financing. Dody Purwanto, General Manager of The Taman Dayu, added that villa sales in the first half of this year reached 60%, and products launched this year have always sold out. Rudy Sutanto, Chairman of the Indonesian Real Estate Brokers Association (Arebi), said that the villa market is more focused on lifestyle than assets, and consumers are reluctant to buy ready-to-live-in villas that have the same design as their neighbours. The location and developer's name are also important factors for consumers.
Developers cannot launch complexes with too many units, as villa buyers always want something exclusive and different. The villa market is expected to continue to grow, as the middle class in Indonesia continues to expand.