Colliers Property Market Report JKT-1Q2015
Colliers Property Market Report JKT-1Q2015
Colliers Property Market Report JKT-1Q2015
Forecast Report
4Q 2013
Jakarta
1st
Quarter
| Office
2015
Accelerating success.
OFFICE SECTOR
Office Space
Offered for Lease
By Ferry Salanto
Supply
sq m
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Existing Supply
2019F
2018F
2017F
2016F
2015F
2015YTD
2014
2013
2012
2011
2010
Annual Supply
sq m
6,000,000
3,000,000
2,000,000
1,000,000
Existing Supply
2019F
2018F
2017F
2016F
2015F
Annual Supply
2015YTD
2014
2013
2012
2011
4,000,000
2010
Colliers International
5,000,000
1,000,000
900,000
800,000
700,000
600,000
sq m
Apart from the continued influx of new office space, there will
a reduction in the total office space. Two office buildings in
Sudirman are being demolished as of 1Q 2015. Jalan Sudirman,
as the main thoroughfare in the CBD, is undergoing a mega-MRT
project to alleviate worsening traffic problems, particularly in the
commercial area. With the MRT project, DKI Jakarta Government
allow land owners along the MRT route for higher plot ratio, With
very expensive land prices in the area and given the higher plot
ratio, several old buildings are being considered for demolition
and replaced with taller office buildings. By eliminating these
two office buildings, the cumulative office supply only grew 2.9%
YoY to 4.78 million sq m as of 1Q 2015.
500,000
400,000
300,000
200,000
100,000
0
2015F
2016F
For Lease
2017F
For Sale
2018F
2019F
In Planning
sq m
After very limited additional office space last year, two office
buildings in the CBD are officially opened, namely Sahid
Sudirman and Gran Rubina which together contributed 169,938
sq m of new office space. The CBD further anticipates around
400,000 sq m of office space projected to be in operation before
the end of 2015. The projected additional office supply will be
contributed by eight office buildings that as of 1Q 2015 are in the
finishing stages of construction.
1,500,000
1,000,000
500,000
Existing Supply
2019F
2018F
2017F
2016F
2015F
Annual Supply
2015YTD
2014
2013
2012
2011
2010
1,000,000
800,000
600,000
400,000
200,000
2018F
2017F
2016F
2015F
2015YTD
Existing Supply
2012
250,000
2011
300,000
2014
2010
1,200,000
2013
sq m
In spite of the fact that the outside CBD regularly provides less
office space than the CBD, since 2010, additional office supply
in the outside CBD has been consistently above 100,000 sq m
per year. In 2015, it is expected that 334,206 sq m of additional
office space will enter the market. As of 1Q 2015, almost 43% of
the above supply has been in operation. South Jakarta will be
the most active area, contributing nine of the 12 projected office
buildings in 2015.
Annual Supply
sq m
200,000
150,000
100,000
50,000
0
2015F
For Lease
2016F
2017F
For Sale
2018F
2019F
In Planning
250,000
250,000
200,000
sq m
200,000
sq m
150,000
100,000
150,000
100,000
50,000
50,000
For Sale
In Planning
sq m
2,500,000
2,000,000
1,500,000
1,000,000
500,000
2018F
2017F
2016F
2015F
2015YTD
2014
2013
2012
2011
2010
TB Simatupang
TB Simatupang
2019F
2018F
2017F
2016F
2015F
2014
2013
2015YTD
For Lease
2017F
2012
2016F
2010
2015F
2011
LOCATION
SGA
MARKETING SCHEME
STATUS DEVELOPMENT
CBD
2015
Sinarmas MSIG
Sudirman
Under Construction
2015
Mega Kuningan
Under Construction
2015
Sudirman
Under Construction
2015
Cemindo Tower
Rasuna Said
Under Construction
2015
Gatot Subroto
Under Construction
2015
Satrio
Under Construction
2015
Mega Kuningan
Under Construction
2015
Wisma Mulia 2
Gatot Subroto
Under Construction
2016
Convergence
Rasuna Said
Under Construction
2016
Sudirman
Under Construction
2016
Menara Pertiwi
Mega Kuningan
Under Construction
2016
Gatot Subroto
Under Construction
2016
Menara Palma 2
Rasuna Said
Under Construction
2016
Centennial Tower
Gatot Subroto
2016
Satrio
Under Construction
2016
Satrio Tower
Satrio
Under Construction
2016
The Tower
Gatot Subroto
Under Construction
2016
Thamrin
Under Construction
2016
Gatot Subroto
Under Construction
2017
Mangkuluhur Tower
Gatot Subroto
Under Construction
2017
Sudirman
Under Construction
2017
Gayanti City
Gatot Subroto
In Planning
2017
Sudirman
Under Construction
2017
Sudirman
Under Construction
2017
Mega Kuningan
Under Construction
2017
Mega Kuningan
Under Construction
2018
Sudirman
2018
Rasuna Said
2018
Mangkuluhur Tower II
Gatot Subroto
2018
2018
2018
Icon Tower
2018
2018
Under Construction
In Planning
In Planning
In Planning
Sudirman
Under Construction
Sudirman
Under Construction
Sudirman
In Planning
Satrio
Under Construction
Astra Tower
Sudirman
Under Construction
2018
Thamrin Nine
Thamrin
Under Construction
2018
Chitaland
Gatot Subroto
Under Construction
2019
Rasuna Said
2019
The Hundred
2019
2019
2019
2019
In Planning
Mega Kuningan
Under Construction
Sudirman
Under Construction
Mega Kuningan
Under Construction
Sudirman
In Planning
Sudirman
In Planning
2019
Sudirman
In Planning
2019
Sudirman
In Planning
2019
Redevelopment eX
Thamrin
In Planning
continued
LOCATION
SGA
MARKETING SCHEME
STATUS DEVELOPMENT
continuation
OUTSIDE CBD EXCLUDING TB SIMATUPANG
2015
Menara Sentraya
Blok M
Under Construction
2015
Puri Indah
Under Construction
2015
The Suites
Under Construction
2015
Maxima Tower
Kelapa Gading
Under Construction
2015
Mampang
Under Construction
2016
Puri Indah
Under Construction
2016
Gallery West
Kebun Jeruk
Under Construction
2016
L'Office
Pasar Minggu
Under Construction
2016
MNC Tower II
Kebon Sirih
Under Construction
2016
Sky 18 Tower
Pasar Minggu
Under Construction
2016
Soho Capital
Slipi
Under Construction
2016
Altira
Sunter
Under Construction
2016
Sunter
Under Construction
2016
Tamansari Parama
Wahid Hasyim
Under Construction
2017
Soho Pancoran
Pancoran
Under Construction
2017
Kebon Sirih
Under Construction
2017
Cempaka Putih
In Planning
2017
One Tower
Kemayoran
In Planning
2017
Kemayoran
In Planning
2017
Kemayoran
In Planning
2017
Puri
In Planning
2017
Puri
In Planning
2017
Puri
In Planning
2018
Casablanca
In Planning
2018
Puri
In Planning
2018
Puri
In Planning
2018
Puri
In Planning
2018
Summarecon Tower
Slipi
In Planning
TB SIMATUPANG
2015
Graha MRA
Under Construction
2015
Under Construction
2015
Under Construction
2016
Under Construction
2016
Zuria
Under Construction
2016
Cibis Tower
Under Construction
2017
Under Construction
2017
The Sima
Under Construction
2017
Arkadia Tower G
In Planning
2017
In Planning
YoY
1Q 2015
96.5%
QoQ
4Q 2014
93.6%
95.7%
sq m
5,000,000
100%
4,500,000
90%
4,000,000
80%
3,500,000
70%
3,000,000
60%
2,500,000
50%
2,000,000
40%
1,500,000
30%
1,000,000
20%
500,000
10%
Vacant Space
2015YTD
2014
2013
2012
0%
2011
2010
98%
96%
Space Absorbed
100%
Occupancy
94%
92%
90%
88%
86%
84%
82%
80%
1Q 2014
Premium
Grade A
Grade B
2015YTD
Grade C
All in all, the office market still expects demand from the
finance-related industries including insurance and banking,
which still require large spaces. The growing information and
technology industries, such as telecommunications will also
help create office demand in the CBD. Moreover, the policy of
the new government to accelerate the countrys infrastructure
and energy sectors, will hopefully provide opportunities for the
office space business from tenants like consultants or suppliers
who support those industry sectors.
The huge supply projected for the next couple of years will
create a challenge for the office business. As of 1Q 2015, the
total projected supply for 2016 has yet to report pre-committed
absorption. Given this situation, we believe that the projected
occupancy will continuously decline in the CBD.
2014
100%
90%
2,500,000
2016F
80%
70%
2,000,000
sq m
60%
1,500,000
50%
40%
1,000,000
2015F
30%
20%
500,000
10%
0
100,000
200,000
300,000
400,000
500,000
2010
sq m
Space Absorbed
Vacant Space
Space Absorbed
2014
Vacant Space
Occupancy
Outside CBD
94.6%
2012
1Q 2014
0%
YoY
1Q 2015
90.9%
QoQ
4Q 2014
93.2%
2016F
2015F
30,000
60,000
90,000
120,000
150,000
sq m
Space Absorbed
Source: Colliers International Indonesia - Research
Vacant Space
TB Simatupang
1Q 2014
YoY
96.2%
1Q 2015
QoQ
84.3%
4Q 2014
92.8%
100%
90%
600,000
80%
sq m
500,000
70%
60%
400,000
50%
300,000
40%
30%
200,000
20%
100,000
10%
0%
2010
Space Absorbed
2012
Vacant Space
2014
Occupancy
CBD
All rental numbers presented in this report are asking rental
rates as published by developers. Tenants are becoming more
sensitive to the increase in the rental rates recently particularly
given the fact that vacant office space is quite abundant and
the economy is slowing down. Amidst tenants concern over
the high occupancy costs, the average rental rate in rupiah was
IDR257,543/sq m/month as of 1Q 2015 for all classes of office
buildings, posting an upward adjustment of 1.8% QoQ.
Some office buildings charging in rupiah lowered their rents
from the previous quarter. However, increasing rents at office
buildings with large vacant spaces have caused the overall asking
base rents to climb. As of 1Q 2015, at least two office buildings
holding vacant spaces of more than 15,000 sq m raised the rent
by IDR50,000 to 80,000/sq m/month.
The asking rents in US dollars showed almost similar growth of
3.6% QoQ, to USD38.18/sq m/month as of 1Q 2015.
Office buildings charging in US dollars and with higher rents
above the market average generally having large vacant spaces.
As of 1Q 2015, 58.8% of the total remaining vacant space was
found at office buildings charging USD40.00/sq m/month and
above. Nevertheless, some significant adjustment was made by
office buildings charging in US dollars by lowering their rents
between USD2.00 and 10.00 as of 1Q 2015. These adjustments
caused office rents to climb only modestly QoQ.
Similar to buildings charging in US dollars, of the total vacant
space supplied by office buildings charging rent in rupiah, 46.9%
is available at office buildings charging rent above the market
average rent. This resulted in a higher average rent in rupiah.
In the high specifications class of buildings charging in US
dollars, the asking base rent of Premium and Grade A office
buildings in the CBD continued to decrease. As of 1Q 2015, the
average asking rent was USD42.56/sq m/month, down modestly
by 0.3% QoQ. It has been three consecutive quarters since 2H
2014 that the average asking base rent of Premium and Grade A
office buildings has decreased QoQ.
The average asking rental rate for Premium office buildings only
was USD49.04/sq m/month as of 1Q 2015, down moderately
QoQ.
in Rupiah
in Rupiah
IDR 600,000
IDR 300,000
IDR 550,000
IDR 500,000
IDR 250,000
IDR 450,000
IDR 400,000
IDR 200,000
IDR 350,000
IDR 300,000
IDR 150,000
IDR 250,000
IDR 200,000
IDR 100,000
IDR 150,000
IDR 100,000
IDR 50,000
IDR 50,000
IDR 0
IDR 0
2010
2011
2012
2013
2014
Grade A
2015YTD
Grade B
Grade C
in US Dollar
in US Dollar
USD 60.00
USD 60.00
USD 50.00
USD 50.00
USD 40.00
USD 40.00
USD 30.00
USD 30.00
USD 20.00
USD 20.00
USD 10.00
USD 10.00
USD 0.00
2010
2011
2012
All Classes
Source: Colliers International Indonesia - Research
11
2013
2014
2015YTD
USD 0.00
Premium
Premium
Grade A
Grade B
Grade C
Outside CBD
The average asking rental rate in the outside CBD showed
modest growth QoQ at office buildings charging in both rupiah
and US dollars. As of 1Q 2015, the asking base rent registered an
average of IDR191,603/sq m/month, while in US dollars it was
USD21.47/sq m/month.
The most expensive office locations in the outside CBD area
remain in Central and South Jakarta. The asking base rent in
Central and South Jakarta was between IDR205,974 and 215,172/
sq m/month. In fact, West Jakarta showed significant growth in
the rental rates, at 6.2% QoQ, more than in other areas. Several
office buildings that have been operating since 2013 - 2014 have
had a significant impact on the overall asking base rent in West
Jakarta, raising it to IDR197,611/sq m/month.
The least favourite office locations, i.e. North and East Jakarta
recorded the lowest asking base rents at between IDR106,736
and 108,729/sq m/month as of 1Q 2015.
Being the secondary business area after the CBD, TB Simatupang
(which is part of South Jakarta) helps maintain an asking base
rent in South Jakarta to register at the highest level. Although the
QoQ growth of asking base rents was low, four office buildings
newly operating in early 2015 have raised the asking rent to
IDR228,822/sq m/month and USD21.71/sq m/month.
IDR 200,000
IDR 150,000
IDR 100,000
IDR 50,000
IDR 0
2010
2011
2012
2013
2014
2015YTD
TB Simatupang
in US Dollar
USD 25.00
USD 20.00
USD 15.00
USD 10.00
USD 5.00
USD 0.00
2010
2011
2012
2013
12
2014
2015YTD
TB Simatupang
Service Charge
The gap between service charges in the CBD and outside CBD
tapered. Last year, the service charge in the outside CBD was
around 20% less than in the CBD. As of 1Q 2015, the service charge
(both IDR and US dollars) in the outside CBD was IDR65,498/
sq m/month, up 20.1% QoQ. Office buildings newly operating
during 2013 - 2014 had maintenance costs between IDR45,000
and 85,000/sq m/month. Currently, most of the new buildings
in the outside CBD continue to improve building service quality
and facilities. Moreover, some office buildings, primarily in TB
Simatupang, are classified as green buildings. In TB Simatupang
alone, the average service charge was IDR59,340/sq m/month,
and USD5.93/sq m/month.
Service charges in the CBD climbed 8.5% QoQ and were
IDR76,356/sq m/month as of 1Q 2015. Compared to the outside
CBD, currently it is 14% higher than in the outside CBD. Based
on building grade, service charges at Premium and Grade A
office buildings in the CBD were IDR86,562/sq m/month, up
21.5% QoQ. Seven Premium and Grade A office buildings in the
CBD had service charges of IDR90,000/sq m/month and above
during the reviewed quarter.
IDR 80,000
IDR 60,000
IDR 40,000
IDR 20,000
IDR 0
CBD
Source: Colliers International Indonesia - Research
2011
CBD
2012
2013
2014
2015YTD
Outside CBD
13
Outside CBD
Strata-title Office
200,000
180,000
160,000
IDR 60,000,000
sq m
140,000
IDR 50,000,000
120,000
100,000
80,000
IDR 40,000,000
60,000
40,000
IDR 30,000,000
20,000
IDR 20,000,000
2010
2011
2012
2013
2014
2015YTD
TB Simatupang
The CBD will see a large amount of additional office space for sale
in 2015 - 2018, starting with the operation of Gran Rubina and
Sahid Sudirman, which brought the cumulative supply of stratatitle offices in the CBD to 986,767 sq m as of 1Q 2015. At least
another 14 strata-title office buildings will provide 849,564 sq m
in the CBD up to 2018. The majority of office buildings are under
construction and are expected be completed as scheduled.
The high commitment of office transactions has kept the average
take-up rate at 97.6% as of 1Q 2015. Despite dropping QoQ,
the take-up rate will bounce back due to the fact that there
will be no new additional supply of strata-title office space for
sale in the remainder of 2015. During this quarter, some future
strata-title office buildings projected to be in operation in 2016
and 2017 have been fully absorbed, which helped bring the
pre-commitment sales to 38 and 61%, respectively. These precommitment levels are expected to keep the projected take-up
rate at a high level in the future.
2015YTD
2014
2013
2012
2011
Annual Supply
IDR 0
CBD
2010
IDR 10,000,000
2009
2008
Annual Take-up
2017F
2016F
2015F
100,000
200,000
300,000
400,000
sq m
Space Absorbed
Space Unabsorbed
14
Concluding Thoughts
250,000
200,000
sq m
150,000
100,000
50,000
Cumulative Supply
2015YTD
2014
2013
2012
2011
2010
2009
2008
Cumulative Take-up
2017F
2016F
2015F
50,000
100,000
150,000
Space Absorbed
200,000
Space Unabsorbed
250,000
sq m
15
Apartment Sector
LOCATION
REGION
DEVELOPER
NO. OF UNITS
West Jakarta
Gapura Prima
350
Central Jakarta
192
Titanium Square
East Jakarta
PT Titanium Property
725
Ancol
North Jakarta
Jaya Ancol
800
South Jakarta
341
Botanica Apartment
South Jakarta
Pikko Group
626
South Jakarta
221
LOCATION
REGION
EXPECTED
COMPLETION
TIME
ESTIMATED PRICE/
SQ M*
NO. OF
UNITS
REMARKS
South Hill
CBD
2018
IDR37 - 39 million
611
Pre-sales
Jl. Pramuka
Central Jakarta
2017
IDR16.7 million
1,000
Launched
Podomoro Park
East Jakarta
2018
IDR18.5 million
3,000
The Hamilton
South Jakarta
2017
IDR49.5 million
112
Pakubuwono Spring
South Jakarta
2018
IDR51 million
545
Launched
La Terrasse
South Jakarta
2018
IDR37 million
111
Launched
Jl. TB Simatupang
South Jakarta
2018
IDR28 million
381
Introduced
South Jakarta
2018
IDR29.5 million
1,100
19 Avenue (Tower B)
West Jakarta
2017
IDR10.5 million
416
Launched
Notes:
*Price excludes 10% VAT
**NUP (Indonesian term for Nomor Urut Pemesanan) or also known as priority pass is a new marketing strategy commonly applied by reputable developers to gauge the interest
of potential buyer in the initial offering
Source: Colliers International Indonesia - Research
16
25,000
Units
20,000
15,000
10,000
5,000
0
2015F
2016F
2017F
2018F
CBD
Central Jakarta
South Jakarta
North Jakarta
East Jakarta
West Jakarta
LOCATION
REGION
NO. OF UNITS
2015
The Grove (Empyreal + Masterpiece)
CBD
438
CBD
64
CBD
426
CBD
160
Elpis Residence
Gunung Sahari
Central Jakarta
790
Central Jakarta
727
Central Jakarta
976
Central Jakarta
522
Central Jakarta
612
Central Jakarta
800
Central Jakarta
192
Central Jakarta
120
East Jakarta
1,904
East Jakarta
725
The H Residence
MT Haryono
East Jakarta
383
East Jakarta
1,000
East Jakarta
1,000
East Jakarta
1,000
East Jakarta
600
East Jakarta
900
North Jakarta
1,100
Pluit
North Jakarta
940
Pluit
North Jakarta
300
Callia Apartment
North Jakarta
560
North Jakarta
821
continued
17
APARTMENT NAME
LOCATION
REGION
NO. OF UNITS
continued
Ancol
North Jakarta
800
North Jakarta
2,072
South Jakarta
341
South Jakarta
225
Senopati Penthouse
South Jakarta
63
Senopati Suites 2
Jl. Senopati
South Jakarta
81
South Jakarta
980
Barito
South Jakarta
80
South Jakarta
626
South Jakarta
221
South Jakarta
279
Nine Residence
Warung Buncit
South Jakarta
246
Providence Park
South Jakarta
114
Kencana Residence
South Jakarta
173
TB. Simatupang
South Jakarta
542
Jl. Fatmawati
South Jakarta
644
South Jakarta
288
South Jakarta
Kebon Jeruk
West Jakarta
1,451
West Jakarta
159
Satu8 Residence
West Jakarta
174
West Jakarta
350
West Jakarta
1,100
Jl. Kosambi
West Jakarta
1,000
Daan Mogot
West Jakarta
338
CBD
CBD
349
Sudirman Suites
Jl. Sudirman
CBD
380
CBD
318
Central Jakarta
307
Sentosa Residence
Cempaka Putih
Central Jakarta
687
Central Jakarta
255
Central Jakarta
1,000
Central Jakarta
1,000
Central Jakarta
1,000
Capitol Suites
Central Jakarta
327
Central Jakarta
192
Cempaka Putih
Central Jakarta
230
East Jakarta
1,100
East Jakarta
600
East Jakarta
550
Pulo Gebang
East Jakarta
133
Pluit
North Jakarta
500
Pluit
North Jakarta
650
South Jakarta
253
Jl. P Antasari
South Jakarta
150
44
2016
119
continued
18
APARTMENT NAME
LOCATION
REGION
NO. OF UNITS
continuation
Senopati Suites 3
Jl. Senopati
South Jakarta
54
Kebayoran Lama
South Jakarta
435
Jl. Senopati
South Jakarta
400
Jl. Senopati
South Jakarta
280
Lexington Rersidence
Pondok Pinang
South Jakarta
275
South Jakarta
560
Four Winds
South Jakarta
122
Bellevue Place
MT Haryono, Tebet
South Jakarta
240
Kebayoran Icon
South Jakarta
256
Sapphire Residence
Lebak Bulus
South Jakarta
West Jakarta
West Jakarta
164
Gianetti Apartment
West Jakarta
500
Gallery West
Jl. Panjang No 5
West Jakarta
280
West Jakarta
193
Puri Mansion
West Jakarta
900
Madison Park
Tanjung Duren
West Jakarta
1,200
Veranda
West Jakarta
174
Domaine
CBD
186
CBD
182
CBD
500
Central 88 (2 Towers)
Central Jakarta
612
Menteng Park
Central Jakarta
756
Holland Village
Cempaka Putih
Central Jakarta
400
Royal Suites
Kemayoran
Central Jakarta
450
Central Jakarta
1,000
East Jakarta
800
Podomoro Park
East Jakarta
3,000
East Jakarta
2,000
East Jakarta
700
La Terrasse
South Jakarta
111
The Foresque
South Jakarta
660
Senopati
South Jakarta
57
South Jakarta
200
La Foret Vivante
South Jakarta
253
Kebayoran Lama
South Jakarta
336
The Hamilton
South Jakarta
Jl Raya Adicipta
West Jakarta
3,000
Maqna Residence
West Jakarta
312
West Jakarta
1,100
Wang Residence
Jl. Panjang No 18
West Jakarta
250
Tanjung Duren
West Jakarta
3,000
Daan Mogot
West Jakarta
416
North Jakarta
186
37
200
2017
112
continued
19
APARTMENT NAME
LOCATION
REGION
NO. OF UNITS
continuation
2018
Verde Two (Tower West)
CBD
152
Lavie
CBD
320
South Hill
CBD
611
Le' Parc
Jl. Thamrin
CBD
100
Semanggi
CBD
100
Basuki Rahmat
East Jakarta
400
Basuki Rahmat
East Jakarta
400
Pulo Gebang
East Jakarta
282
Ciracas
East Jakarta
476
North Jakarta
568
Pantai Mutiara
North Jakarta
186
North Jakarta
912
Kelapa Gading
North Jakarta
790
Pademangan, Ancol
North Jakarta
524
Jl. Casablanca
South Jakarta
350
Jl. Casablanca
South Jakarta
350
Jl. Casablanca
South Jakarta
350
Pondok Indah
South Jakarta
880
South Jakarta
344
South Jakarta
160
45 Antasari (2 Tower)
Antasari
South Jakarta
1,924
Arzuria Apartment
Jl. Tendean
South Jakarta
210
South Jakarta
545
TB. Simatupang
South Jakarta
381
South Jakarta
1,100
Puri Indah
West Jakarta
412
Grand Madison
Tanjung Duren
West Jakarta
300
West Jakarta
104
West Jakarta
126
West Jakarta
117
West Jakarta
122
West Jakarta
550
20
Demand
Following a downturn trend in the previous quarter, the sales
of strata-title apartments, particularly in the primary market,
continued to record slow absorption. This slow market situation
was highlighted by low GDP growth and a rupiah depreciation
against the US dollar, which affected the overall economy of
Indonesia, particularly by lowering the purchasing power of the
middle class. The weakening local currency against the US dollar
has made construction costs more expensive, particularly for
upper- to luxury-class apartments, as 30 to 40% of the material
components are imported goods. Furthermore, the abundance
of supply puts the overall market in a tough situation since there
are about 80,000 units (during 2015 - 2018) being marketed. In
view of this, we expect to see a further softening in the strata-title
apartment market throughout 2015.
4Q 2014
1Q 2015
QoQ
Existing Projects
95.6%
95.7%
0.10%
72.1%
68.4%
-3.70%
87.00%
85.50%
-1.50%
Average
Source: Colliers International Indonesia - Research
4Q 2014
99.3%
1Q 2015
QoQ
99.3%
0.0%
South Jakarta
97.9%
97.6%
-0.3%
Non-Prime area
93.7%
94.0%
0.3%
4Q 2014
1Q 2015
QoQ
CBD
88.3%
83.9%
-4.4%
South Jakarta
78.0%
68.6%
-9.4%
Non-Prime area
69.4%
67.1%
-2.3%
Asking Price
Despite the lowering sales performance during the quarter,
average asking prices for strata-title apartments continued to
demonstrate an upward trend. As of 1Q 2015, the average asking
price of apartments in Jakarta rose by 3.7% QoQ to IDR28.7
million/sq m. Based on location, the new apartments in nonprime locations posted the highest price increase, followed by
South Jakarta and the CBD area. Benefiting from a relatively
lower price compared to South Jakarta and the CBD area, some
projects in non-prime areas are enjoying a good take-up rate and
that has helped the average price to improve. On the other hand,
the market perceives that the current prices of apartments in the
CBD have reached a peak.
1Q 2015
CBD
ASKING PRICE/SQ M
43,472,842
44,135,684
1.5%
South Jakarta
32,033,471
32,713,013
2.1%
Non-Prime area
20,764,022
21,212,815
2.2%
21
QoQ
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
2011
2012
2013
2014
2015YTD
Non-prime
21%
CBD
44%
Payment Method
Apartment
Composition
Hard Cash
16%
in
Purchasing
Mortgage
26%
South Jakarta
35%
Cash
Installment
58%
Source: Colliers International Indonesia - Research
22
YEAR OF
OPERATION
OPERATOR
LOCATION
TYPE
1995
Ascott Limited
Kebon Kacang
Serviced Apartment
1996
Ascott Limited
Satrio
Serviced Apartment
Countrywoods Residence
1996
Ascott Limited
WR Supratman, Ciputat
Serviced Apartment
Somerset Berlian
2006
Ascott Limited
Permata Hijau
Serviced Apartment
2011
Frasers Hospitality
Setiabudi
Serviced Apartment
2013
Ascott Limited
Rasuna Said
Condotel
2014
Frasers Hospitality
Menteng
Serviced Apartment
2014
Ascott Limited
Satrio
Serviced Apartment
2015
Frasers Hospitality
Karbela Selatan
Serviced Apartment
2015
Ascott Limited
Condotel
2016
Frasers Hospitality
Satrio
Serviced Apartment
2018
Frasers Hospitality
Kebon Melati
Serviced Apartment
Capri by Fraser
2018
Frasers Hospitality
TB Simatupang
Condotel
Source: Colliers International Indonesia - Research and Fraser Cachet (Issue 18)
Occupancy
The apartment for lease market experienced a minor occupancy
decrease of 0.4% QoQ to 75.3%. Leasing activity during the
initial period of 2015 was relatively stagnant highlighted with
come and go tenants and the absence of new enquiries from
expatriates. This figure also marked a 0.9% decrease compared
to the same quarter in 2014. Moreover, it should be noted that
a large number of new middle-upper to upper class strata-title
apartments is likely to put downward pressure on occupancy
levels of apartments for lease. Generally, individually owned
apartment units are offered furnished, which meets expatriate
standards and taste.
4Q 2015
84.5%
South Jakarta
Non-Prime area
1Q 2015
0.1%
77.1%
76.7%
-0.4%
74.9%
74.8%
-0.1%
1Q 2015
QoQ change
CBD
78.7%
76.1%
-2.6%
South Jakarta
74.6%
75.5%
0.9%
Non-Prime area
51.8%
53.4%
1.6%
QoQ change
84.6%
AREA
Rental Rates
The average monthly rent of apartments for lease in Jakarta
persisted in its decline, falling 2% QoQ to USD21.8/sq m/
month. The overall downward trend in the rental rate was
triggered by sluggish demand in the previous year, which caused
management adjust rents to maintain the occupancy level.
Several apartments for lease are offered in local currency,
however with the weakening rupiah against the US dollar and
that the overall rental rates presented here are in US dollars, the
overall figure dropped somewhat. During the tenants market
in the coming period, rents are expected to soften during 2015
and this will characterise the whole leasing market.
Concluding Thought
USD 30.00
USD 27.00
USD 24.00
USD 21.00
USD 18.00
USD 15.00
USD 12.00
USD 9.00
USD 6.00
USD 3.00
CBD
2015YTD
2014
2013
2012
2011
2010
2009
USD 0.00
4Q 2014
1Q 2015
QoQ change
CBD
USD28.58
USD27.81
-2.7%
USD15.94
USD15.83
-0.7%
24
RETAIL SECTOR
Supply
East Jakarta
Jakarta
North Jakarta
South Jakarta
5,500,000
Central Jakarta
5,000,000
4,500,000
CBD
4,000,000
2,500,000
Existing Supply up to 2014
2,000,000
1,500,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
For Sale
For Lease
25
2018F
2017F
2016F
5,500,000
5,000,000
2015F
2015YTD
For the last five years, the growth of retail space in Jakarta has
been slack and this will likely continue in 2015 - 2016 when there
will be less than 100,000 sq m of additional supply contributed by
three shopping centres. With no new shopping centres operating
as of 1Q 2015, the cumulative supply of retail space in shopping
centres in Jakarta remained as it was in 2014 at 4.43 million sq m.
2014
2013
2018F
2017F
2016F
2015F
2015YTD
2014
Annual Supply
2012
Existing Supply
2013
2012
2011
2010
2010
500,000
sq m
1,000,000
2011
sq m
3,500,000
3,000,000
Bekasi
3,000,000
Tangerang
2,500,000
sq m
2,000,000
Depok
1,500,000
Bogor
1,000,000
500,000
300,000
600,000
2018F
2017F
2016F
2015F
2015YTD
2014
Annual Supply
1,200,000
sq m
sq m
Existing Supply
2013
2012
2011
2010
900,000
1,500,000
1,000,000
500,000
For Sale
For Lease
26
2018F
2017F
2016F
2015F
2015YTD
2014
2013
2012
2011
2010
DEVELOPER
LOCATION
REGION
NLA (SQ M)
STATUS
Jakarta
2015
Pantai Indah Kapuk Mall
Agung Sedayu
North Jakarta
Agung Podomoro
Pancoran
South Jakarta
Agung Podomoro
Slipi
West Jakarta
Puri Indah
West Jakarta
50,000 In Planning
Grand Cipulir
Priamanaya
Cipulir
South Jakarta
30,000 In Planning
Lippo Group
Cempaka Putih
Central Jakarta
40,000 In Planning
Agung Podomoro
Glodok
West Jakarta
Pramuka
North Jakarta
30,000 In Planning
Pondok Indah
South Jakarta
60,000 In Planning
Mas Mansyur
Central Jakarta
65,000 In Planning
Agung Podomoro
Buaran
East Jakarta
40,000 In Planning
Cakung
East Jakarta
90,000 In Planning
AEON
Serpong
Tangerang
Gapura Prima
Bulak Kapal
Bekasi
Metropolitan Land
Cileungsi
Bogor
Megapolitan
Cibinong
Bogor
30,000 In Planning
Megapolitan
Cibinong
Bogor
13,000 In Planning
Kawan Lama
Jababeka
Bekasi
18,000 In Planning
Plaza Indonesia
Jababeka
Bekasi
20,000 In Planning
Hollywood Central
Cikarang
Bekasi
25,000 In Planning
Embarcadero
Lippo Group
Bintaro
Tangerang
40,000 In Planning
Bekasi
Bekasi
2016
Neo SOHO Mall (Podomoro City)
2017
2018
BoDeTaBek
2015
AEON Mall BSD
2016
2017
continued
SHOPPING CENTERS
DEVELOPER
LOCATION
REGION
NLA (SQ M)
STATUS
2018
AEON Mall Deltamas
AEON
Deltamas
Bekasi
90,000 In Planning
AEON
Cibinong
Bogor
20,000 In Planning
AEON
Sentul
Bogor
15,000 In Planning
Pesona Square
Menara Depok
Depok
Depok
30,000 In Planning
Bekasi
Bekasi
51,000 In Planning
Lippo Group
Karawaci
Tangerang
120,000 In Planning
100%
90%
3,000,000
80%
sq m
2,500,000
70%
60%
2,000,000
50%
1,500,000
40%
30%
1,000,000
20%
500,000
10%
0%
2010
Space Absorbed
2012
Vacant Space
2014
Occupancy
28
The performance of newly operating shopping centres in 2013 2014 also helped move occupancy upwards in North, East and
West Jakarta. As of 1Q 2015, the occupancy in North and East
Jakarta were 83.7 and 87.4%, respectively. West Jakarta recorded
List of New Tenants (of more than 1,000 sq m) during 2015 in Jakarta
NAME OF TENANT
TYPE OF RETAILER
OPEN AT
OPENING TIME
Jysk
Home Furnishing
Kuningan City
March
Jysk
Home Furnishing
Pejaten Village
March
XXI
Entertainment
March
H&M
Fashion
Emporium
April
Matahari
Dept. Store
Pasaraya
June
H&M
Fashion
June
Uniqlo
Fashion
PIK Mall
July
Lotte Mart
Supermarket
PIK Mall
July
Informa
Home Furnishing
PIK Mall
July
Ranch Market
Supermarket
PIK Mall
July
Golds Gym
Entertainment
Dharmawangsa Square
July
Debenhams
Dept. Store
July
Ace Hardware
Home Furnishing
PIK Mall
October
Ace Hardware
Home Furnishing
Mall of Indonesia
November
200,000
2,000,000
100%
160,000
90%
70%
1,200,000
80,000
60%
50%
800,000
40,000
40%
30%
20%
400,000
Annual Supply
10%
2015YTD
2014
2013
2012
2011
2010
0%
2010
Annual Demand
29
80%
sq m
sq m
1,600,000
120,000
Space Absorbed
2012
Vacant Space
2014
Occupancy
200,000
90%
160,000
80%
70%
sq m
60%
50%
120,000
80,000
40%
30%
40,000
20%
10%
Depok
Tangerang
2015YTD
Bekasi
Annual Supply
2014
2014
2013
2013
2015YTD
Bogor
2012
2012
2011
2010
2010
2011
0%
Annual Demand
PROJECTED COMPLETION
LOCATION
RETAILERS
Jysk
Home Furnishing
Margo City
February
Ace Hardware
Home Furnishing
Bintaro XChange
May
XXI
Entertainment
Aeon Mall
June
H&M
Fashion
Aeon Mall
June
Uniqlo
Fashion
Aeon Mall
June
Informa
Home Furnishing
Bintaro XChange
May
Ace Hardware
Home Furnishing
2016
Informa
Home Furnishing
2016
List of New Tenant of More Than 1,000 sq m During 2015 and 2016 in Jakarta and BoDeTaBek
PROJECTED
COMPLETION
LOCATION
PIK Mall
2015
Blitz Megaplex, Muji, Gold Gym, Lotte Mart, Ace Hardware, Fun World, Ranch Market
2016
Aeon Mall
2015
2016
2016
Cileungsi, Bekasi
SHOPPING CENTERS
RETAILERS
Jakarta
BoDeTaBek
30
in Jakarta
2018F
2018F
2017F
2017F
2016F
2016F
2015F
2015F
2014
2014
60,000
120,000
Absorbed
180,000
240,000
sq m
Vacant Space
80,000
160,000
Absorbed
240,000
Vacant Space
320,000
sq m
Based on committed demand, future shopping centres in 2015 2016 both in Jakarta and the greater Jakarta area have been 50%
absorbed as of 1Q 2015. Some committed tenants are ready to
open at shopping centres that are projected to begin operating
in 2015 - 2016.
IDR 900,000
IDR 800,000
IDR 700,000
IDR 600,000
IDR 500,000
Middle middle low class malls have begun to see high growth of
rents. In the previous year, the growth of the average rent of this
mall grade was 2.2%. In 2015, by climbing 2.9% YoY, the average
base rent was IDR343,991/sq m/month as of 1Q 2015. However,
the projected growth of rents will be modest as increasing rents
still have a strong impact on middle class retailers.
IDR 400,000
IDR 300,000
IDR 200,000
IDR 100,000
IDR 0
2010
Upper Class
2011
2012
Middle Low
2013
2014
2015YTD
Average
IDR 1,000,000
IDR 900,000
IDR 800,000
IDR 700,000
IDR 600,000
IDR 500,000
IDR 400,000
IDR 200,000
IDR 300,000
IDR 200,000
IDR 160,000
IDR 100,000
IDR 0
2010
2011
2013
2012
CBD
2014
2015YTD
IDR 120,000
Outside CBD
IDR 80,000
IDR 40,000
IDR 0
2010
2011
2012
2013
CBD
2014
2015YTD
Outside CBD
BoDeTaBek
Average Base Rent in BoDeTaBek
IDR 400,000
IDR 160,000
IDR 360,000
IDR 320,000
IDR 120,000
IDR 280,000
IDR 240,000
IDR 80,000
IDR 200,000
IDR 160,000
IDR 40,000
IDR 120,000
IDR 80,000
IDR 0
2010
Upper Class
2011
2012
2013
Middle Low
2014
2015YTD
Average
IDR 40,000
IDR 0
2010
Bogor
2011
Depok
2012
2013
Tangerang
32
2014
2015YTD
Bekasi
Concluding Thoughts
IDR 120,000
IDR 100,000
IDR 80,000
IDR 60,000
IDR 40,000
IDR 20,000
IDR 0
2010
Bogor
2011
Depok
2013
2012
Tangerang
2014
2015YTD
Bekasi
Hotel Sector
Star-Rated Hotel
12,000
8,000
6,000
4,000
2,000
60
50
40
30
20
10
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
5-star
34
5-star
2015
2014
2013
2012
2011
2010
2009
4-star
70
4-star
2008
3-star
3-star
2007
2006
10,000
2005
STAR
RATED
STR GLOBAL
EQUIVALENT
RATE
LOCATION
NO. OF
ROOMS
REGION
PROJECTED
COMPLETION
TIME
Midscale Class
Hayam Wuruk
Central Jakarta
265 2015
Midscale Class
Gunung Sahari
Central Jakarta
200 2015
Midscale Class
Cilandak
South Jakarta
130 2015
Aston Neo
Midscale Class
TB Simatupang
South Jakarta
170 Q3 2015
Ibis Style
Midscale Class
North Jakarta
200 Q4 2015
Prima Hotel
Midscale Class
Wahid Hasyim
Central Jakarta
150 Q4 2015
Santika
Midscale Class
TB Simatupang
South Jakarta
151 Q2 2016
Santika
Midscale Class
Yos Sudarso
North Jakarta
150 Q2 2016
Ibis Style
Midscale Class
Bangka Raya
South Jakarta
200 Q3 2016
The Acacia
Midscale Class
Kramat Raya
Central Jakarta
150 Q3 2016
Hotel @Fachrudin
Midscale Class
Tanah Abang
Central Jakarta
225 Q4 2016
Citizen M Hotel
Midscale Class
Mega Kuningan
South Jakarta
200 Q4 2018
Upscale Class
Central Jakarta
200 2015
Novotel
Upscale Class
North Jakarta
220 Q4 2015
Upscale Class
North Jakarta
300 Q3 2016
Aloft
Upscale Class
Wahid Hasyim
Central Jakarta
170 Q4 2017
Upscale Class
Mega Kuningan
South Jakarta
Sheraton
Luxury
Gandaria
South Jakarta
300 Q3 2015
InterContinental
Luxury
Pondok Indah
South Jakarta
300 Q4 2015
St Regis
Luxury
Gatot Subroto
South Jakarta
124 2016
The Langham
Luxury
SCBD
South Jakarta
200 2017
Regent
Luxury
Gatot Subroto
South Jakarta
126 2018
Sofitel
Luxury
Mega Kuningan
South Jakarta
212 2018
112 2018
Budget Hotel
For the last couple of years, the budget hotel market has shown
exponential supply growth. As of 2015, there will be 1,164
additional hotel rooms. Since 2006, the Amaris brand (Santika
Group) has been the major budget hotel operators with ten hotels
under its management. Other active budget hotel operators
include Aston Group with Fave and NEO, Accor Group with
Ibis budget brand, and Tauzia Management with POP! and the
new brand called Yello. By the end of 2015, Tauzia Management
will dominate hotel development especially for budget hotels
around Indonesia.
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
STR GLOBAL
EQUIVALENT RATE
LOCATION
REGION
NO. OF
ROOMS
PROJECTED
COMPLETION
TIME
Economy
Pasar Baru
Central Jakarta
112
2015
Economy
Wahid Hasyim
Whiz - Cipete
Economy
Cipete
Central Jakarta
90
2015
South Jakarta
180
2015
@HOM - Cawang
Economy
Cawang
Economy
Gajah Mada
East Jakarta
80
2015
Central Jakarta
90
Economy
Hayam Wuruk
Central Jakarta
200 2015
2015
Economy
Hayam Wuruk
Central Jakarta
372 2015
Amaris TB Simatupang
Economy
TB Simatupang
South Jakarta
151 2015
1,600
1,400
1,200
1,000
Santika
Tauzia
800
Year to Date
600
400
200
0
Santika
Year to Date
Tauzia
Intiland
Intiland
2,000,000
1,500,000
1,000,000
500,000
2014
2013
2012
2011
2010
2009
Performance
80%
60%
40%
20%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Domestic
Foreign
37
2008
2007
For some time, hotel guests have been largely domestic. Most
foreign guests choose to stay in 5-star hotels, with some staying in
4-star hotels mainly for business trips. The majority of domestic
guests prefer to stay in 3-star hotels. In the last four years, the
average length of stay of foreign guests in 5-star hotels has been
slightly higher than that of domestic guests.
2,500,000
2006
2005
Demand Driver
80%
80%
60%
60%
40%
40%
20%
20%
0%
Feb 2014
Jakarta
Feb 2015
CBD
0%
Feb 2014
Outside CBD
Feb 2015
Upscale Class
100%
80%
60%
USD 140.00
40%
USD 120.00
20%
USD 100.00
USD 80.00
0%
Feb 2014
Feb 2015
Luxury Class
Upscale Class
USD 60.00
USD 40.00
USD 20.00
USD 0.00
Feb 2014
Jakarta
Source: STR Global
Feb 2015
CBD
Outside CBD
Feb 2015
Outside CBD
Luxury Class
Upscale Class
USD 80.00
USD 60.00
USD 40.00
USD 20.00
USD 0.00
Feb 2014
Feb 2015
Upscale Class
39
Industrial Estate
Sector
Supply
Commencing in 2015, around 50 ha of new industrial land were
introduced by Bekasi Fajar Industrial Estate. This new industrial
land stock is ready for sale. Sizeable industrial land remains
limited and thus far, many plans for expansion have yet to be
concluded.
In 2015, the industrial market will receive quite sizeable
new industrial land from the expansion of several industrial
estates. Apart from the 50 ha available above, around 5.4 ha is
also available from Suryacipta. Another expansion of 25 ha of
commercial area will also be contributed by Bekasi Fajar, This
parcel will be offered at a different price from the industrial lots.
Thus far, only around 80 ha were recognised as this quarters
supply.
One industrial estate located in Bekasi is accelerating the
conclusion of land acquisition and permitting as part of the
expansion plans for around 600 ha. This industrial estate has yet
to confirm that the 600 ha extension plan on which they are now
working will be ready at a specified time. Likewise, two industrial
estates in Serang are also working on expanding the industrial
land with a total area of more than 400 ha.
Apart from operating industrial estates that are actively
expanding their zone are several upcoming industrial estates
located mainly in Karawang that are part of a big consortium
called Trans Hexa Karawang.
Several industrial estates will focus on delivering industrial
land that they have sold to industrial tenants. At the same time,
expansion is still needed for developers to maintain sales. Land
acquisition is one issue that takes most of the time even when the
land has been part of the whole master plan.
While some expansion projects are still underway, the transaction
activity continues. However, we only recognise new supply when
land is ready for occupation with ready infrastructure.
40
The general issue in the industrial market remains the same, i.e.
the limited ready-to-build industrial land. Continued inquiries
for industrial land versus the limited stock of land on offer will
still characterise the overall industrial market although the
expectation of future industrial land is high. Since 2011, land
scarcity has been a major problem for most industrial estates,
and the substantial surge in land demand is at the crux of this
problem. In certain industrial estate locations like in Bekasi,
quite a few potential buyers seeking industrial land come to the
estate frequently there was less transaction recorded because
the land is limited. When the landlords have more bargaining
power, some of them that are located in highly demanded areas
like Bekasi or Karawang continue to sell raw land at the price of
ready-to-use land. Buyers are taking the position of acquiring
raw land at the current price to anticipate a further increase
when land is offered in a ready-to-use condition. Buying raw
land (at the ready-to-use price) is something common.
Demand
Total sales during 1Q 2015 was much underpinned by the sales
in the Serang area. In general, sales activity during the quarter
was quiet compared to the previous quarter. In Tangerang,
Millennium was the only active industrial estate.
Overall, sales of industrial land were sluggish in this early period
of the year. Sales activity within operating industrial estates was
relatively low. The good thing is that the total sales during 1Q
2015 was much underpinned by the sales at two industrial estates
in Serang involving around 42 ha of land. Land absorption is
definitely weakening compared to the same quarter last year.
However, we still see that the industrial market is strong with
potential buyers continuing to ask for industrial land, although
the inquiries are still sporadic.
Total sales in Serang during 1Q 2015 jumped quite substantially
compared to last quarter due to sales at two major industrial
estates in this area, from 17.15 ha to 42.05 ha this quarter.
KIEC reported about 9 ha of land sales (from the total planned
transaction of 18 ha). This piece of land was sold to coal
storage company, which is related to the cement industry.
Modern Cikande, on the other hand, consistently records sales
transactions and has been always be the main driver of the
overall transactions in the greater Jakarta area. Thus far, 33 ha
of land transactions in Modern Cikande were concluded by
five companies from the chemical, probiotic, lubrication, baby
diapers and F&B industries. All of these transactions were by
new companies.
KIIC
0
1,200
1,000
800
600
400
Tangerang
Karawang
2015YTD
2014
2013
2012
2011
2010
2009
2007
2006
2008
Bekasi
Serang
41
15
20
25
30
35
Bogor
10
hectares
200
Jakarta
For the last year, automotive and related industries have not
been the main driver for industrial land absorption. Last year,
the automotive industry only ranked number three after the F&B
and logistics / warehouse industries. This quarter, the automotive
industry plunged to seventh position after consumer goods,
warehouse, F&B, building materials, chemicals, and heavy
equipment industries. However, this condition cannot be used
to predict the overall picture of new tenant composition for the
full year of 2015, as the market will be very dynamic. One thing
that we can opine is that the warehouse and logistics companies
together with consumer goods will be the most active tenants for
this year.
1,400
Hectares
CCIE
USD 200
Medical
1.25%
USD 150
Bogor
Source: Colliers International Indonesia - Research
Land Price
One industrial estate in Bekasi introduced a new land price of
USD230/sq m, following the last quarters adjustment made by
the industrial estate adjacent to it. One industrial estate in this
location with the biggest land bank kept adjusting the land price
and monitored the price dynamics, particularly in Bekasi and
Karawang. To date, they adjusted the price from USD185 to 195/
sq m this quarter. Other than these two industrial estates, prices
have been stable. The average land price for available industrial
plots in Bekasi was registered at USD222.47, about the same as
the price last year.
Another industrial estate in Serang was also quite confident
with the new price of IDR1.9 million/sq m, representing a 8.5%
increase over last quarter. This brought the average industrial
land price in Serang to USD132.77/sq m (after converting from
local currency to US dollars).
Other than these two regions, industrial land prices are stable in
Bogor, Tangerang and Karawang. There might be a slight price
adjustment during 2015, depending on the economy and sales
performance for the full year of 2015.
42
Bekasi
Tangerang
Karawang
2015YTD
2014
2013
USD 0
2012
Food &
Beverage
13.60%
USD 50
2011
Consumer
Goods
27.99%
Automotive
5.48%
USD 100
2010
Plastics
1.22%
2009
Others
1.28%
2008
Chemicals
7.95%
Building
Material
10.95%
2007
Heavy
Equipment
Machinery
7.30%
1.34%
2006
Logistics/
Warehousing
21.64%
Serang
HIGHEST
MAINTENANCE COSTS
(PER SQ M PER MONTH)
AVERAGE
LOWEST
HIGHEST
AVERAGE
USD 0.06
Bogor
USD 120.0
USD 218.7
USD 169.3
USD 0.06
USD 0.06
Bekasi
USD 195.0
USD 250.0
USD 222.5
USD 0.06
USD 0.08
USD 0.07
Tangerang
USD 148.4
USD 156.2
USD 152.3
USD 0.03
USD 0.08
USD 0.06
Karawang
USD 170.0
USD 200.0
USD 185.0
USD 0.05
USD 0.10
USD 0.06
Serang
USD 117.2
USD 148.4
USD 132.8
USD 0.03
USD 0.05
USD 0.04
*1USD = Rp 12,804
Source: Colliers International Indonesia - Research
Maintenance Cost
In general, maintenance costs stood at the same level as last
quarter. Only in Serang did two operating industrial estates
announce adjustments in service charges during the quarter
under review. The average service charge in Serang was IDR449/
sq m/month last quarter and in 1Q 2015 it rose to IDR592/sq m/
month.
US$/sq m/month
$0.08
$0.06
$0.04
$0.02
Bogor
Bekasi
Tangerang
Karawang
2015YTD
2014
2013
2012
2011
2010
2009
2008
2007
2006
$0.00
Serang
Concluding Thought
The industrial market initiated the year with relatively good
performance with total sales for 1Q 2015 about a quarter of sales
in the full year of 2014. Albeit lower than last quarter, at least the
industrial market has signalled for further recovery as buyers
have been actively looking for industrial land during the quarter.
Land availability should not become a crucial issue, although
some prominent estates have find it difficulties in providing
big parcel land in prime location. Nevertheless several underconstruction industrial estates largely located in Karawang and
some other estates in Serang, Tangerang and Bekasi are working
on construction of industrial which would become significant
land bank in the future.
The cancellation of mega project Cilamaya port would broaden
the opportunity for industrial location to move further east to
Subang and Purwakarta. The government has indicated that
Cilamaya project would be shifted to other areas that would
not interfere with the very important Pertamina facilities for
distributing gas when the Cilamaya project is executed.
43
502 offices in
67 countries on
6 continents
Primary Authors:
Ferry Salanto
Associate Director | Jakarta
62 21 521 1400 ext 134
[email protected]
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billion in
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