F&B tenants continue to drive demand

• Sustained demand from the F&B sector remained. International chains expanded their presence in this period. Another recent trend emerged in upscale shopping centres, with spaces allocated for local fashion and dining brands.
• Entertainment tenants, especially those catering to younger audiences, showed less activity in Q3 2024. The only openings were seen at Neo Soho from Boulder Planet and Zycle.

No new mall openings in Q3 2024

• During the third quarter of 2024, the absence of new prime mall openings persisted, continuing a pattern observed since early 2023.
• Despite the current trend, new retail space is expected to become available in Q4 with the opening of the Puri expansion. This development extends to Puri Indah Mall 2, which is planned to open in November 2024.

Persistently low vacancy rates continue to drive rents upward

• Jakarta’s prime shopping mall rents saw a smaller increase of 0.64% in the quarter. However, the trend is still upward, mainly due to limited space and continued demand for prime retail locations in the city.
• There was no investment activity in prime shopping malls. However, the retail sector still attracts investor interest, as evidenced by shopping mall transactions occurring in regions beyond Jakarta.

Outlook: Steady demand and growth in prime shopping malls with constrained supply

• Prime shopping malls are likely to continue attracting visitors. Several international brands are expected to expand in the near future.
• Given the limited addition of only one new mall in the upcoming year, coupled with consistently low vacancy rates in Jakarta’s prime shopping centres, rents are expected to maintain their upward trajectory.