APPD Market Report Article

Jakarta

May 31, 2022

-1.1%

IDR 3,060,850

Rents
Falling

New launches drive sales

  • Condominium sales in 1Q22 increased slightly compared to 4Q21, due to two new launches in CBD.
  • Leasing enquiries for serviced apartments in Jakarta has slowly improved, as easing of regulations for arrivals has increased visitation from overseas. Limited housing rental budgets for business executives and professionals continue to suppress leasing demand due to the pandemic.

Developers start to launch new projects

  • No upper-grade projects were launched in 2021. However, developers started launching new projects in the quarter, starting with two new upper-grade projects: The Okura Residence, a residential/condotel project by Mitsubishi Estate, and Savyavasa by Swire Properties. Both are joint-venture projects with local companies.
  • No new completed serviced apartments were recorded in 1Q22. The Oakwood Apartment in SCBD was initially targeted to be completed in the first quarter this year, however, completion was delayed.

Overall rents remain flat

  • Some projects have slightly increased their price per sqm. Big year-end promotions have been unleashed and the new year is being used by developers to adjust prices, however, rents still depend on the project’s sales rate and construction progress.
  • Serviced apartment rents were relatively stable as the holiday seasons have ended. While the peak season has passed, the first quarter of the year is when tenants traditionally renew their contracts. Most landlords prefer to maintain a healthy occupancy by maintaining the price for renewals.

Outlook: Leasing enquiries expected to increase as borders reopen

  • Most developers will likely continue to focus on selling their unsold stock and offer buyers attractive promotions, especially for underperforming projects.
  • Enquiries from expatriate tenants are expected to gradually increase amid the easing of border regulations, which would revive economy activity.

Note: Jakarta Residential refers to Jakarta's luxury condominium and serviced apartment markets.

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