Is IDR 21.52bn defensible for this 175 m² Jakarta flat?

drawsAndCairn

Real estate agent
I’m torn between valuing this by price per square metre and treating its unusually large 1-bed layout as a separate issue. The Jakarta new-build flat is about 175 m², in average condition and listed at IDR 21,520,000,000. It has good light and location, although the finishes look dated.

There are three active asking comparables available to me, against a single completed transaction. My first branch would be to rely more heavily on that sale if it matches the building, completion timing and micro-location. If it differs materially, I would use the broader set but adjust for the large floor area rather than assuming every square metre carries the same value.

I’m also checking nearby planning applications. Before settling on either approach, I need the tenure or lease details, service charges, parking inclusion and any outdoor space. Parking could materially alter the comparison if the completed sale included it and this flat does not. A local formal appraisal will be obtained before I rely on a valuation.
 
The ask works out at roughly IDR 123 million per m², so I’d first put all four comparables onto the same area basis. I wouldn’t apply one blanket floor-area adjustment: extra space often has a different marginal value, especially in a 1-bed layout. For condition, estimate the cost of bringing the dated finishes up to the completed comparable’s level. Lease length or tenure details would be my biggest missing fact, followed by whether parking is included.
 
How similar is that completed sale in micro-location and completion date? One actual sale can still mislead if it is in a different building, has a better position, or includes parking and outdoor space. I’d also want the service charges before interpreting the asking price. A very large 1-bed may not attract the same price per square metre as a more conventional layout, even if the total area is valuable.
 
I’m not convinced lease length is automatically the biggest swing factor here. Subject to the actual tenure structure, the completed comparable’s building and immediate location may matter more. Light can vary considerably between units, and any nearby application that could affect it weakens that premium. I’d give the completed sale the most weight, then use the three listings only to show the current sellers’ range—not as proof of achievable value.
 
Build a small adjustment table rather than choosing a percentage first: confirmed area basis, sale or asking status, date, exact micro-location, condition, parking, outdoor space, service charges and tenure/lease details. Keep parking separate if possible, and note whether the 175 m² includes any non-internal area. Then ask the appraiser to explain how the one completed sale was adjusted for the large 1-bed layout. That should reveal whether IDR 21.52bn is supported or mainly anchored to listings.
 
Back
Top