APPD Market Report Article

Jakarta

December 1, 2021

-2.4%

IDR 3,069,025

Rents
Falling

Demand slowdown continues

  • High-rise residential market remained at a standstill; the uncertain economic situation has led to a weaker buyer response. A similar situation was seen in terms of net absorption compared to last quarter. Investor-buyers, as the majority source of demand, remained extremely cautious.
  • Weak demand and increased vacancy rates continued due to travel restrictions for foreign tourists and expatriates. Serviced apartment operators are focusing on the local tenant market for family or staycation programmes.

No new project launches

  • The high-rise residential market experienced limited new launches due to weak demand. Developers have adopted a cautious approach and are waiting until the market improves before launching new projects.
  • No new serviced apartments were completed in the quarter.

Rents still declining but at a slower rate

  • The overall high-rise residential prices remained flat in 3Q21, as the demand remained weak. Developers have been maintaining prices and offering attractive programmes to entice buyers for quite some time.
  • Market rents for serviced apartments continued to drop by 0.3% q-o-q, a slightly lower rate compared to the previous quarter.

Outlook: Demand is likely to remain subdued

  • Limited upper-grade high-rise residential launches are expected in the remainder of 2021 due to weakened demand. Prices are expected to remain flat.
  • Serviced apartment trends are likely to remain unchanged until the situation improves and the restrictions on international arrivals are lifted.

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

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