The residential property market in Jakarta so far in 2016 has performed in quite a diverse way depending on which section of the market we are talking about. We see the transaction levels at the luxury end starkly different to that at the lower end. 

So let's take a closer look at whats happening at different price points in the property market.

• The luxury end (IDR60 million per sqm +) of the market is quite slow with minimal transactions being recorded every month. A lot of this is because of the additional 20% luxury tax (PPnBM) that buyers have to pay for property priced over IDR10M as of December 2015
• Middle end of the market (IDR15 – 30 million per sqm) has seen moderate sales levels with some previous upper end buyers (IDR31-59 million per sqm) transitioning to the middle market to reduce the taxation payable and still stay active in the market
• Low end (IDR9 – 14 million per sqm) is still quite active – not booming by any means. I recently spoke with a developer who launched and sold 300 units in 5 days in East Jakarta at IDR9.8 million per sqm
• The tax amnesty has kept a number of investors sitting on the sidelines until the decision from the DPR comes in the next few months  
• Developers have also become more adaptive to changing their payment methods. Traditionally they have been quite one dimensional in their payment models being hard cash, 12, 24, or 36 month payments with the KPA option.
• Developers are now offering longer payment terms such as 60 month installments with this all being done to try and attract more buyers to their projects leading to more sales
• Developers are not reducing their pricing but are increasing incentives
• Developer incentives have significantly increased for property buyers with items such as BMW and Mercedes cars offered for some of the luxury projects. Less expensive cars such as Mazda are offered on the mid scale projects

As you can see the current state of the residential market remains quite diverse with developers trying to entice buyers to enter the market by offering a range a different payment terms and incentives.