Jakarta doesn't have a comprehensive transport plan and the cost to the economy is huge.The price tag is estimated in the billions of dollars every year in lost time, fuel and health. On top of this the city's traffic was ranked the unenviable title of the world's worst for 2015.
As the new infrastructure plans are underway that include a US$2 billion airport railway and, a new Mass Rapid Transit (MRT), which is slated for completion by 2018, the potential for growth in land values along these corridors is clearly seen.
People will pay a premium to have access to efficient transport networks and as the population continues to swell, urbanisation rises and the economic output remains in Jakarta, demand for properties located in walking distance will be highly sought after.
Being close to transport networks will become a sales point for every developer positioned close to these networks. We have seen this in cases like Bangkok and its BTS Skytrain where properties within walking distance to the BTS saw good capital appreciation rates of 17.56%.
The new MRT line in Jakarta will be no different and has already seen developers (Ciputra to name just one) position themselves along this transport corridor in anticipation for this new demand and growth and could mirror what we saw in Bangkok.
Property values are projected to rise as residents anticipate the easing of difficult commutes and the volume of investment into luxury districts close to the MRT will likely increase as well.
As infrastructure changes, evolves and is created, it will open up areas and create opportunities for savvy property investors. People value their time and are prepared to pay a premium for it - this wont change in the future.