The development of the mass rapid transit (MRT) and other transportation infrastructure has increased the value of property, particularly in areas near the developments, the Indonesia Property Watch (IPW) has said.
IPW executive director Ali Tranghanda said on Thursday that transit-oriented development (TOD) was a growing trend among property developers.
“The closer an area is to public transportation facilities, the better the property’s investment,” Ali said as quoted by kompas.com.
Ali said this was particularly apparent in Lebak Bulus, Cilandak and Fatmawati, which were located close to the MRT stations in South Jakarta.
He said that when intensive construction started on the MRT Jakarta started in 2016, it prompted a 6 to 7 percent increase in the value of properties in South Jakarta, with properties in and around Lebak Bulus enjoying the greatest increase. “In 2018, the [property hike] ranged from 3 to 7 percent,” he added.
Ali said people preferred TOD property for a number of reasons: first, it reduced their dependence on private vehicles, and second, it improved suburban-urban access. TOD also helped grow the economy and boosted property values.
The IPW’s records show that land in Cilandak currently range from Rp 10 million (US$706.69) to Rp 26 million per square meter, from Rp 15 million to Rp 28 million per square meter in Fatmawati, and from Rp 15 million to Rp 45 million per square meter in Lebak Bulus.