APPD Market Report Article

Jakarta

August 26, 2022

Yunus Karim, Head of Research, Jakarta

-0.6%

IDR 3,060,850

Rents
Falling

Fewer unit sales as a result of no new project launches

  • Condominium sales in 2Q22 dropped slightly due to the absence of newly launched projects. Despite the lack of new projects in the market, face-to-face marketing activities have become more common due to loosened social restriction policies, resulting in more exhibitions that can be held.
  • The serviced apartment market is slightly improved as more expatriates return to the city due to the easing of border restrictions.

One new serviced apartment building completes within the quarter

  • Although the current social restriction policy is at its lowest level, most developers have remained largely cautious to enter the market and have continued to observe the market response closely. Furthermore, no new projects have been physically completed.
  • One new serviced apartment, Citadines Sudirman, was completed and added 253 units to total stock. Citadines Sudirman is a part of The Newton 1 complex located in the busy CBD area in Satrio, South Jakarta.

Rents remain stable despite higher expatriate inflow

  • Driven by the continuation of low transaction volumes and uncertain market situation, condominium developers continued to hold prices flat.
  • Despite the relaxation of border controls and higher expatriate activity, serviced apartment rentals remained flat. Relatively lower budget allowances for expatriates and landlord discounts continued to suppress rental growth.

Outlook: Developers to continue to cautiously launch new projects

  • The condominium market will likely continue to experience a limited number of new projects due to market uncertainty. Demand is expected to recover when the market sentiment becomes positive and the situation stabilises.
  • With more business activity returning to normality, enquiries for viewing will likely increase gradually. Although it may not directly translate into transactions, it will likely indicate growing demand in the market.

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

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