APPD Market Report Article

Jakarta

May 26, 2024

Yunus Karim, Head of Research, Indonesia

4.8%

IDR 3,214,555

Rents
Rising

Condominium demand remains sluggish

  • Condominium sales have been very limited for the past three years. In the quarter, buyer sentiment was influenced by the presidential election, which has been a contributing factor to the limited sales. It is anticipated that the market will not experience a significant recovery until the second half of the year.
  • Due to a new supply of serviced apartments, vacancy rates saw a slight increase of 1.4% compared to the previous quarter. Meanwhile, the majority of absorption was driven by a newly-completed project that offered attractive package prices. Developers were still actively focused on boosting sales through discounts and promotions.

Le Parc Terrace and PARKROYAL Serviced Suites Jakarta complete

  • No new prime condominiums were launched; however, the luxury condominium, Le Parc Terrace, was completed. Located in the Thamrin Nine complex, it has a total of 48 units.
  • One new serviced apartment, namely PARKROYAL Serviced Suites Jakarta, a part of the Pan Pacific Hotels Group, was delivered in 1Q24. It is also located in the Thamrin Nine Complex in Central Jakarta and comprises 180 units.

High-end condominium prices increase slightly

  • While the majority of condominium prices have remained stagnant, there has been a slight increase in prices for high-end condominiums. Some developers have gained enough confidence to raise prices due to the successful sale of condominium units.
  • Serviced apartment rents remained relatively stable, increasing 0.5% in 1Q24. However, most landlords preferred to maintain healthy occupancy by keeping the prices steady for lease renewals.

Outlook: New projects are likely to launch

  • Developers have plans to launch new projects this year. However, due to the political environment in Indonesia, their decisions may be subject to change. The condominium market might remain soft until after both the presidential election and the upcoming regional election.
  • Two notable serviced apartment projects with over 400 new units are expected in 2025. The completion of the LRT and MRT Phase 2 might trigger investor interest in undeveloped land and existing residential buildings along transit-oriented developments (TOD) routes.

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

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