The Indonesian dream: landed housing over condominiums

Indonesia’s residential property market is bifurcated. Landed houses in Greater Jakarta are performing strongly with an 88% sales rate, while Jakarta's condominium market shows softer demand at 56%. Sales and launches have steadily declined since 2017, reflecting how Indonesians choose to live.

Figure 1: Supply, demand, and sales rate: Greater Jakarta landed housing vs. Jakarta condominiums

Source: JLL Research Indonesia, 2025

Several factors explain why landed properties continue to dominate buyer preference. Ownership type appears to be one key consideration. Landed houses typically come with Sertifikat Hak Milik (SHM) or freehold title, offering permanent ownership rights that families can pass down through generations. In contrast, most condominiums operate under Sertifikat Hak Guna Bangunan (SHGB) or building use rights, which are time-limited and require renewal. For Indonesians thinking about long-term family wealth and legacy, SHM provides a level of security and permanence that aligns with their values of leaving something tangible for their children.

The reasons behind this trend are not only practical but also cultural, as landed houses fit Indonesian lifestyle needs. Family gatherings, community events, religious celebrations during Eid or Christmas, and traditional ceremonies all need space and flexibility. Landed houses offer the adaptability Indonesian families value, including room to expand gradually based on financial capability, freedom to renovate or add installations, and easier pet ownership. They also provide space to host extended families or celebrations without building restrictions or noise complaints.

Responding to these preferences for landed housing, developers have focused on areas within Greater Jakarta where land remains available for housing development. Tangerang has emerged as the most favourable location for both developers and buyers, leading the region with a cumulative supply of 21,732 units and robust demand of 19,431 units.

Figure 2: Supply and demand by submarket

Source: JLL Research Indonesia, 2025

Tangerang appeal lies in its integrated township developments. These self-contained communities feature comprehensive facilities including schools, hospitals, shopping centres, and recreational spaces that function as satellite cities. These townships provide residents with everything they need within their neighbourhoods, reducing dependency on the central city for daily needs. The combination of integrated townships and multimodal transportation addresses typical suburban living concerns. 

Every buyer has their own priorities, as both landed housing and condominiums have their strengths and trade-offs. Landed housing often provides more space and is typically found in integrated townships located farther from city centres, though recent projects increasingly feature compact sizing to improve affordability. Condominiums in Jakarta are situated closer to business districts and reduce commute times, making them a good option for those who value convenience and location.

While landed housing remains the preferred option, younger buyers may shift their focus to high-rise living. Oversees returnees bring new preferences, such as renting instead of buying in urban areas like Jakarta. Greater demand for convenience would drive this trend. Although, for now at least, landed housing is likely to dominate demand in the near future.