The F&B industry remains a significant driver of demand in the market

• Despite limited supply, shopping malls are still actively competing to attract visitors by introducing notable international tenants to the Indonesian market.
• Additionally, there were new store openings in the fashion and entertainment industries; in particular, retailers specialising in children’s fashion have opened new stores, and entertainment venues have expanded their operations.

Absence of newly completed Prime malls

• Since the beginning of 2023, the absence of new retail establishments launching in Jakarta has led to a decline in the vacancy rate, which reached 3.8% by the second quarter of 2024.
• In response to the high occupancy levels, landlords of several malls found ways to accommodate brands and help them showcase their products to the market, such as the provision of temporary booth spaces within the malls.

Limited availability sustains Prime mall rent growth

• In the current quarter, rents have experienced a notable growth of 1.23%, surpassing the figures from the previous month. The Prime mall market in Jakarta has seen a consistent trend of moderate rent growth over the past 12 months.
• Prime malls, being the go-to destinations for all ages, continue to draw the attention of brands aiming to establish their presence. Thus, the limited availability of Prime mall space suggests that rents will likely continue to rise.

Outlook: Continued demand despite supply constraints

• The completion of one new Prime mall in the CBD over the next six months is expected to drive more store openings in Jakarta, as malls continue to be popular destinations for visitors.
• Continued rent growth is expected at Prime shopping malls in Jakarta over the next 12 months. This trend can be attributed to the healthy demand and scarcity of new malls being developed, leading to a limited supply in the market.