The Increase of Secondary Housing Prices In Surabaya Surpasses Jakarta

Although the increase is still relatively sloping, it is higher than the movement of secondary housing prices in Jakarta.

The Increase of Secondary Housing Prices In Surabaya Surpasses Jakarta
Foto: Anto Erawan - RumahHokie.com

RumahHokie.com (Jakarta) – The secondary housing prices in Surabaya have shown a significant increase during Q3-2017. This year, property development is expected to occur in West Surabaya.

Nevertheless, an almost equitable infrastructure development in all areas of Surabaya will widen the market coverage from downtown to almost all areas of Surabaya.

The construction of the West Outer Ring Road West (Jalan Lingkar Luar Barat) extending from north to south will connect many strategic facilities in West Surabaya.

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This road will have a direct impact on the development of the surrounding properties, including land price movements that also affect the secondary housing market.

Meanwhile, the East Outer Ring Road (Jalan Lingkar Luar Timur) which passes through six sub-districts, namely Kenjeran, Bulak, Mulyorejo, Sukolilo, Rungkut, and Gunung Anyar will boost the land price.

Not to mention the potential construction of roads in the Middle East Ring Road (MERR) Surabaya which had been stopped, is expected to resume again in 2018. This road will be wider because it is designed for eight lanes.

Potential of East Surabaya
Based on research conducted by Indonesia Property Watch (IPW), the growth of secondary house prices in major cities in Indonesia has increased variably, including Surabaya, which rose 1.03% in Q3-2017.

Although the increase is still relatively sloping, it is higher than the movement of secondary housing prices in Jakarta which only increase 0.55%.

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The increase also occurred in the price of secondary homes by 1.27%, also higher than Jakarta (1.09%).

Surabaya market is believed to be more conducive than Jakarta. This makes investors more comfortable to invest in Surabaya than other cities.

West Surabaya still showed the highest growth of 1.38%, followed by East Surabaya (1.25%), Central Surabaya (1.02%), South Surabaya (0.92%), and the lowest in North Surabaya (0.57%).

This movement has not been fully aligned with transaction activity in the secondary home market, although the movement began to be seen in East Surabaya for medium type houses.

Not only in the secondary market, demand for homes in the primary market has increased in this region, following more variations of home segments offered.

therefore, apart from West Surabaya and South Surabaya, East Surabaya area also has higher growth potential in the future.

Anto Erawan
anto.erawan@rumahhokie.com

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