Colliers Quarterly

JAKARTA | APARTMENT
Q2 2018
20 September 2018

Rent
Ferry Salanto Senior Associate Director | Rent seems to have stabilised
Jakarta throughout 2018, whilst the overall 3-4%
increase in rent per annum in 2019-2020
We expect the apartment market to remain lacklustre is quite a moderate projection amidst the
in 2018, given the persistently weak sentiment tight rental market.
highlighted by slower capital gain appreciation and a
sluggish rental market. We believe low affordability, Price
which is typical in a stagnant economic growth, We still expect room for price increases
despite the current slowdown. We
prolonged weak sentiment, as a large incoming supply
expect from now to 2020, unit prices are
continues to plague the market. Also, potential buyers expected to increase by 4.5-5.5% per
may prefer to wait and see, given the looming general annum.
election that is scheduled to be held in April 2019.
Meanwhile, the interest rate hike could be a bane
when affordability is already a major concern amongst
buyers. Strata-title
On the other hand, given the strong response for
affordable projects underpinned by the healthy Apartment…still in
demand from end-users, gives optimism for the robust
line-up of new launches coming from the middle-lower
segment in the coming quarters. Affordable rates
doldrums
combined with lower mortgages should attract
developers to partake in this market. Both local and Supply
international developers join the competition to grab
this huge potential market. We are still in a positive The slow Ramadan period, which fell in Q2 2018, was
view over the residential property market in the long traditionally quiet when it comes to project launches.
term, on the back of the large and relatively young During the quarter, there were only three projects
population, as well as a low mortgage penetration launched, totalling 1,944 units. These include Apple
ratio. Residence, Puri 8 Residence and Sakura Garden City
(Cattleya Tower). Apple Residences is a low-rise
apartment, where each of the floors is an independent
Forecast at a glance dwelling. Apple Residences offers studio to three-bedroom
Demand type of units, targeting the middle market segment.
Apartment market sentiment continues
to be weak and we project the take-up Sakura Garden City (previously Southeast Capital) is a
rate to reach 84-85% by the end of mixed-use development with local developer Trivo Group,
2018. Overall demand will likely recover collaborating with Daiwa House and Japan Overseas
to 85-87%, as the market should be Infrastructure Investment Corporation for Transport &
more confident after the general and Urban Development (JOIN), under the name PT. Sayana
presidential elections in 2019 and 2020. Integra Property. This project is scheduled to be Daiwa
House’s first residential project after actively developing
Supply
We expect an additional 16,081 units or industrial parks and rental warehouses. Located on a 12-
8.3% of the current stock coming online hectare site and consisting of 12 towers, a shopping mall
in the remainder of 2018. The and hotel, the project is planned to come in four phases.
forthcoming annual supply will likely still
be significant in number, around 20,234
units in 2019 and 14,324 units in 2020.
COMPLETED APARTMENT PROJECTS DURING Q2 2018

APARTMENT NAME LOCATION REGION DEVELOPER NAME NO. OF UNITS

Casa Domaine (Tower 1) Sudirman CBD PT Griyaceria Nusamekar 162

Regent Residences (Tower 1) Semanggi CBD PT Kencana Graha Global 100

The H Residence Kemayoran (Amethyst) Rajawali Central Jakarta PT Hutama Karya Realtindo 900
Selatan

Regatta (London Tower) Pantai Mutiara North Jakarta Intiland 186

Izzara Apartment TB Simatupang South Jakarta PT Grage Trimitra Usaha 542

Puri Mansion Apartment (Tower Amethyst) Puri West Jakarta Agung Sedayu Group 800
Kembangan

Puri Orchard (Tower Cedar Heights) Raya Adicipta West Jakarta Serenity Group 1,050

Total 3,740

Source: Colliers International Indonesia - Research

NEWLY LAUNCHED APARTMENT PROJECTS DURING Q2 2018

APARTMENT NAME LOCATION REGION EXPECTED ESTIMATED NO. OF UNITS

COMPLETION PRICE/SQ M
YEAR

Apple Residence Jatipadang South Jakarta 2020 IDR22 million 300

Puri 8 Residence (3 towers) Duri Kosambi West Jakarta 2022 IDR15.5 million 1,094

Sakura Garden City (Cattleya Tower) Bina Marga East Jakarta 2022 IDR15 million 550

Source: Colliers International Indonesia - Research

Another brand-new project, Puri 8 Residence, was Along with the government’s intense infrastructure
developed by the joint venture between local developer, programme, the TOD (Transit Oriented Development)
PT Midas Citra Utama, and Japanese real estate concept has already been widely introduced to promote
investment company, Creed Group. Targeting the middle the benefits of living with direct access to a massive
to low market segment, Puri 8 Residence is Creed Group’s transportation hub. We believe that big developers are
second residential project after collaborating with becoming more active in launching mid-low class projects
Jababeka to develop Kawana Golf Residence, a serviced and might target less favourable locations on the outskirts
apartment with a golf resort. of Jakarta, where they can set a more competitive price
compared to downtown. Furthermore, we see foreign
The mid-low products are generally well-absorbed, developers joining the competition to grab this huge
compared with other segments. Several developers have potential market.
already done some promotions selling this product, eyeing
unit price below IDR1.5 billion. Another effort involves
selling the transportation concept.

2 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

NEW PIPELINE

APARTMENT NAME LOCATION REGION DEVELOPER NO. OF DEVELOPMENT

UNITS STATUS

2018

Sudirman Suites Jl. Jend. Sudirman CBD Pikko Group 380 In Operation

Casa Domaine (Tower I) Jl. Jend. Sudirman CBD Lyman Group 162 In Operation

The Suites Satrio Jl. Prof. Dr. Satrio CBD Ciputra Group 200 Under Construction

Gayanti City (2 Towers) Jl. Gatot Subroto CBD PT Buana Pasifik 598 Under Construction
International

Anandamaya Residences (3 Jl. Jend. Sudirman CBD Hongkong Land 500 Under Construction
towers)

Lavie Jl. Denpasar Raya CBD Wilsor Group 302 Under Construction

Regent Residences (tower 1) Semanggi CBD PT Kencana Graha Global 100 In Operation

The Elements Epicentrum (2 Jl. HR Rasuna Said CBD Sinarmas Land 372 Under Construction
Towers)

T - Plaza Residence (Tower A & Jl. Penjernihan Central Jakarta PT Prima Kencana 614 Under Construction
C)

The H Residence Kemayoran Jl. Rajawali Selatan Central Jakarta Hutama Karya Realtindo 800 In Operation
(Amethyst)

Signature Park Grande Jl. MT. Haryono East Jakarta KSO Fortuna Indonesia 1,100 In Operation
(Pikko)

Bassura City (Tower Jasmine) Jl. Basuki Rahmat East Jakarta Synthesis Development 480 In Operation

Bassura City (Tower Heliconia) Jl. Basuki Rahmat East Jakarta Synthesis Development 700 In Operation

Regatta London Tower Jl. Pantai Mutiara North Jakarta Intiland Development 186 In Operation

Pluit Seaview (Tower Ibiza) Pluit North Jakarta Binakarya Propertindo Group 500 Under Construction

LA City Apartment (Tower A) Jl. Raya Lenteng South Jakarta Pancanaka Samaktha 980 Under Construction
Agung

Nine Residence Warung Buncit South Jakarta PT Lippo Karawaci 246 Under Construction

Pakubuwono Terrace Grand Kebayoran Lama South Jakarta PT Selaras Mitra Sejati 435 Under Construction
Tower

District 8 (Tower Eternity) Jl. Senopati South Jakarta Agung Sedayu 461 In Operation

District 8 (Tower Infinity) Jl. Senopati South Jakarta Agung Sedayu 440 In Operation

Izzara Apartment (South and North Jl. TB Simatupang South Jakarta Grage Group 542 In Operation
Tower)

Bellevue Place Jl. MT Haryono South Jakarta Gapura Prima 240 Under Construction

One Casablanca Residence Jl. Palbatu South Jakarta Forza Land 215 Under Construction

The Foresque Jl. Pasar Minggu South Jakarta PT Griya Karunia Sejahtera 660 Under Construction
(Binakarya Propertindo
Group)

The Langham Residences Jl. Senopati South Jakarta Agung Sedayu 57 Under Construction

The Aspen Peak at Admiralty Jl. Fatmawati South Jakarta PT Harmas Jalasveva 322 Under Construction
(Tower D)

Casa Grande Residence 2 (Tower Jl. Casablanca South Jakarta Pakuwon Group 350 Under Construction
Angelo)

continued

3 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

 APARTMENT NAME LOCATION REGION DEVELOPER NO. OF DEVELOPMENT
UNITS STATUS

continuation

Casa Grande Residence 2 (Tower Jl. Casablanca South Jakarta Pakuwon Group 350 Under Construction
Bella)

Casa Grande Residence 2 (Tower Jl. Casablanca South Jakarta Pakuwon Group 350 Under Construction
Chianti)

Pondok Indah Residences (3 Pondok Indah South Jakarta Metro Pondok Indah 880 In Operation
Towers)

Pakubuwono Spring (2 towers) Jl. Teuku Nyak Arief South Jakarta PT Simprug Mahkota Indah 545 Under Construction
(Agung Podomoro Group)

Branz Simatupang (2 towers) Jl. TB Simatupang South Jakarta Tokyuland 381 Under Construction

Synthesis Residence Kemang (3 Jl. Ampera Raya South Jakarta Synthesis Development 1,100 Under Construction
towers)

Gianetti Apartment Jl. Kebon Jeruk Raya West Jakarta Bangun Investa Graha 500 Under Construction

Gallery West Jl. Panjang West Jakarta AKR 280 In Operation

Puri Mansion Apartment (Tower Jl. Lingkar Luar Barat West Jakarta Agung Sedayu Group 900 In Operation
Amethyst)

Puri Orchard (Cedar Heights Jl. Raya Adicipta West Jakarta PT Adicipta Graha Kencana 1,050 In Operation
tower) (Serenity Group)

Vittoria Residence (3 tower) Jl. Daan Mogot West Jakarta PT Duta Indah Kencana 400 Under Construction

Taman Anggrek Residence (6 Jl. Tanjung Duren West Jakarta Agung Sedayu 3,000 Under Construction
towers)

Ciputra International Puri Indah Jl. Lingkar Luar Barat West Jakarta Ciputra Group 412 In Operation
(Tower Amsterdam)

Grand Madison Park Jl. Tanjung Duren West Jakarta Agung Podomoro Group 300 Under Construction

Citra Lake Suites (Tower Jl. Raya Kresek West Jakarta Ciputra Group 116 In Operation
Rosewood)

Citra Lake Suites (Tower Jl. Raya Kresek West Jakarta Ciputra Group 140 In Operation
Greenwood)

Ciputra International Puri Indah Jl. Lingkar Luar Barat West Jakarta Ciputra Group 335 Under Construction
(Tower San Fransisco)

Puri Mansion Apartment (Tower Jl. Lingkar Luar Barat West Jakarta Agung Sedayu Group 700 Under Construction
Crystal)

West Vista (2 towers) Jl. Lingkar Luar Barat West Jakarta PT Harapan Global Niaga 2,840 Under Construction

2019

South Hill Jl. Denpasar Raya CBD Tan Kian 611 Under Construction

The Residences at The St. Regis Jl. HR Rasuna Said CBD Rajawali Property Group 164 Under Construction
Jakarta

Arandra Residence (was Sentosa Jl. Cempaka Putih Central Jakarta Gamaland 687 Under Construction
Residence) Raya

Sudirman Hill Residence Jl. Karet Pasar Baru Central Jakarta PT Muliaguna Propertindo 299 Under Construction
Barat

Menara Jakarta (Tower Equinox) Kemayoran Central Jakarta Agung Sedayu 396 Under Construction

Menara Jakarta (Tower Azure) Kemayoran Central Jakarta Agung Sedayu 860 Under Construction

The Linq Kemayoran (2 towers) Kemayoran Central Jakarta KG Global 1,020 Under Construction

Menteng 37 Jl. Menteng 37 Central Jakarta Pikko Group & Wijaya 99 Under Construction
Wisesa

continued

4 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

 APARTMENT NAME LOCATION REGION DEVELOPER NO. OF DEVELOPMENT
UNITS STATUS

continuation

Sentra Timur Residence (Tower Pulogebang East Jakarta Bakrieland Development 605 Under Construction
Safir)

Pluit Seaview (Tower Bahama) Pluit North Jakarta Binakarya Propertindo Group 650 Under Construction

Regatta Apartment (Tower New Pantai Mutiara North Jakarta Intiland Development 186 Under Construction
York)

Sedayu City (Tower Melbourne) Jl. Pegangsaan Dua North Jakarta Agung Sedayu 912 Under Construction
Raya

Jaya Ancol Seafront - Oceana Ancol North Jakarta Jaya Ancol 524 In Planning
Tower

Orient Residence Jl. Yos Sudarso North Jakarta PT Tri Raton Mega 225 Under Construction

Gold Coast Apartment (Bahama Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under Construction
Tower)

Gold Coast Apartment (Carribean Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under Construction
Tower)

Gold Coast Apartment (Honolulu Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under Construction
Tower)

La Foret Vivante Permata Hijau South Jakarta PT Mahkota Properti Indo 253 In Planning
Permata

45 Antasari (2 Towers) Jl. P. Antasari South Jakarta Cowell Development 1,924 Under Construction

Arzuria Apartment Jl. Tendean South Jakarta Tolaram Group 210 Under Construction

Fatmawati City Center - Corona Jl. Fatmawati South Jakarta Agung Sedayu 620 Under Construction
Park Suite Tower

Ratu Prabu 3 Residences Jl. TB Simatupang South Jakarta PT Ratu Prabu Tiga 61 Under Construction

Samara Suites Jl. Gatot Subroto South Jakarta Synthesis Development 300 Under Construction

Lavish Kemang Residence Jl. Kemang Raya South Jakarta PT Kemang Karya Utama 474 Under Construction

Permata Hijau Suites Jl. Raya Kebayoran South Jakarta PT Palmerindo Properti 649 Under Construction
Lama

TBS Tower Apartment TB Simatupang South Jakarta PT Mahkota Asia Graha 162 Under Construction

Kasamara Residence Jl. Kesehatan Raya South Jakarta PT MGM Propertindo 151 In Planning

19 Avenue Apartment (Tower B) Daan Mogot West Jakarta Margahayu Land 416 Under Construction

continued

5 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

 APARTMENT NAME LOCATION REGION DEVELOPER NO. OF DEVELOPMENT
UNITS STATUS

continuation

Green Sedayu Apartment (Tower Jl. Kamal Raya West Jakarta Agung Sedayu 644 Under Construction
Pasadena)

Daan Mogot City (3 towers) Jl. Daan Mogot West Jakarta PT China Harbour Jakarta 700 Under Construction
Real Estate Development

Verde Two (Tower West) HR Rasuna Said CBD Farpoint Realty 152 Under Construction

Royal Suites Kemayoran Central Jakarta Springhill Golf Group 450 Under Construction

Gold Coast Apartment (Atlantic Pantai Indah Kapuk North Jakarta Agung Sedayu 568 Under Construction
Tower)

The Kensington Royal Suites (4 Kelapa Gading North Jakarta Summarecon 790 Under Construction
Tower)

Selatan 8 (Tower Prabu) Jl. Raya Ulujami South Jakarta Karya Cipta Group 344 Under Construction

St Moritz (The New Ambassador Puri Indah Kembangan West Jakarta Lippo Karawaci 200 Under Construction
Suite Tower)

Puri Orchard (Magnolia Spring Jl. Raya Adicipta West Jakarta PT Adicipta Graha Kencana 544 Under Construction
tower) (Serenity Group)

Citra Living Apartment (Somerset Jl. Citra 7 West Jakarta Citra Mitra Graha KSO 312 Under Construction
Tower)

Citra Living Apartment (Orchard Jl. Citra 7 West Jakarta Citra Mitra Graha KSO 312 Under Construction
Tower)

2020

Verde Two (Tower East) Jl. HR Rasuna Said CBD Farpoint Realty 182 Under Construction

Le' Parc Jl. MH Thamrin CBD PT Putragaya Wahana 100 Under Construction

The Newton at Ciputra World 2 Jl. Karet Sawah CBD Ciputra Group 450 Under Construction

Holland Village (Phase II) Cempaka Putih Central Jakarta PT Lippo Karawaci 230 Under Construction

The Stature Jakarta Jl. Kebon Sirih Central Jakarta Capitaland and Credo Group 87 Under Construction

The Sahid Asena Apartment and Ciracas East Jakarta Sahid Group 476 In Planning
Garden

Prajawangsa City (8 towers) Jl. Raya Bogor East Jakarta Synthesis Development 4,000 In Planning

East 8 (2 towers) Cibubur East Jakarta Karya Cipta Group 1,172 Under Construction

Sedayu City (Tower Darwin) Jl. Pegangsaan Dua North Jakarta Agung Sedayu 936 In Planning
Raya

Regatta (Tokyo, Acapulco, Sydney Jl. Pantai Mutiara North Jakarta Intiland Development 276 In Planning
Towers)

Kemang Penthouse Jl. P. Antasari South Jakarta PT Senopati Aryani Prima & 114 In Planning
PT Mahardika Gagas
Sejahtera

Antasari Heights (One Otium Jl. P. Antasari South Jakarta PT Radinka Quatro Land 360 Under Construction
Residence)

Selatan 8 (Tower Sultan) Kebayoran Lama South Jakarta Karya Cipta Group 336 Under Construction

Fatmawati City Center(5 towers) Fatmawati South Jakarta Agung Sedayu 2,080 Under Construction

Aerium Taman Permata Buana Taman Permata Buana West Jakarta PT Itomas Kembangan 366 Under Construction
(South Tower) Perdana (Sinarmas Land &
ITOCHU)

continued

6 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

 APARTMENT NAME LOCATION REGION DEVELOPER NO. OF DEVELOPMENT
UNITS STATUS

Green Sedayu Apartment (Tower Jl. Kamal Raya West Jakarta Agung Sedayu 920 In Planning
New York)

Tomang Park Apartment (2 towers) Jl. Tawakal Ujung West Jakarta PT Phoenix Property 2,000 In Planning
Raya

Citra Lake Suites (Tower Oakwood) Jl. Raya Kresek West Jakarta Ciputra Group 117 Under Construction

Citra Lake Suites (Tower Sherwood) Jl. Raya Kresek West Jakarta Ciputra Group 122 Under Construction

2021

The Hundred Residence Mega Kuningan CBD PT Farpoint Realty 100 Under Construction
Indonesia

57 Promenade Jl. Kebon Melati CBD Intiland 496 Under Construction

The Pakubuwono Menteng Jl. Sabang Central Jakarta Pakubuwono Development 340 Under Construction

Southeast Capital (Cattleya Tower) Jl. Bina Marga East Jakarta PT Sayana Integra Properti 823 Under Construction
(Trivo Group)

West Point Apartment Jl. Macan West Jakarta PT Andaland Property 272 Under Construction

Cluny Residence (2 towers) Jl. Arjuna Selatan West Jakarta PT Alam Makmur Property 454 In Planning

Source: Colliers International Indonesia - Research

Take-up Rate Changes in Different Locations in

Demand Jakarta

Overall, the Jakarta apartment market saw a quiet period Q2 Q1 Q2 QOQ YOY
2017 2018 2018
in Q2 2018 with the average take-up rate stabilising at
85.6% since the previous quarter, marking a decline of CBD 91.3% 90.5% 90.7% 0.2% -0.6%
0.1% QOQ, but an increase of 0.7% YOY. In our view, the South
sluggish market condition in the review period was related Jakarta 86.2% 88.3% 87.6% -0.7% 1.4%
to the shifts of people increasing their spending due to the Non-
Ramadan festivities and the new school year. prime
Area 83.4% 84.0% 84.1% 0.1% 0.7%
Despite a limited number of newly launched projects, the
Source: Colliers International Indonesia - Research
take-up rate performance has yet to pick up. We think that
consumers still have their purchasing power, as evidenced Despite registering the highest apartment prices in
by the increasing trend of investment funds. However, Jakarta, the CBD area is still one of the most attractive
people are still hesitant to spend money to invest in places to live and work in the capital. The limited land
property. Slower capital appreciation, the generally slow remaining for development continues to be the main
rental market and increasing competition have held buyers challenge in the CBD, as this impacts overall pricing.
from purchasing an apartment. Nonetheless, Bank Albeit minor, South Jakarta has recorded a declining take-
Indonesia’s measure to increase interest rate two times in up rate along with the continued influx of new apartment
a month, to 4.75%, will likely restrain apartment demand projects.
as mortgages become costly. Also, potential buyers may
refrain from buying, and maintain a wait-and-see attitude,
given the looming general election to be held in April 2019.

7 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

Take-up Rate of Existing Projects and Those Developers' Perception over Property Market in
Under Construction (2013 - 2018YTD) 2018

100% Much Cannot

Worse worse predict
90% than last 2% 4%
year Better than
80%
5% last year
70% 34%
60%
50%
40%

2018YTD
2013

2014

2015

2016

2017

Existing projects Under construction projects Similar to

last year
55%
Source: Colliers International Indonesia - Research

Source: Real Estate Indonesia - DKI Jakarta, 2018

Bank Indonesia indicates that they will likely soon
announce a relaxation on the loan-to-value ratio in trying
Impact of Government Policy to the Growth of
to boost property sales through a mortgage programme.
Real Estate
The plan is related to the decline in down payment ratio,
mortgage indent regulation and credit payment term,
although we believe that this relaxation should have Credit LTV
limited effect on the market. Our thinking is generally in Land & procedure 2%
building 7%
line with the recent survey conducted by Real Estate Tax
Indonesia-DKI Jakarta, revealing that the government’s tax reduction
reduction 29%
interventions (reducing property tax, easing permit 8%
requisition and lowering interest rate) are vital to the
recovery of the property market. It also said that most
developers (55%) are pragmatic over the current market
condition, saying that the market could stagnate this year,
whilst only 34% of respondents are optimistic about the
market condition throughout the year. Interest
rate
Trend of Third Party Fund 26% Ease of
getting
6,000,000 permit
28%
Third Party Fund (in Bn IDR)

5,000,000
Source: Real Estate Indonesia - DKI Jakarta,, 2018

4,000,000
Asking Price
3,000,000
Amid the relatively stagnant market condition, the average
asking prices of apartments have continued to trend
2,000,000
upward. Average asking prices of apartments in Jakarta
edged up slightly by 1.1% QOQ and 2.5% YOY to IDR33.2
1,000,000
million/sq m. The largest increases were seen outside the
0
CBD and South Jakarta areas. During this challenging
March March March March March March period, prices are relatively stagnant. The adjustment was
2013 2014 2015 2016 2017 2018 largely due to the inclusion of new projects with good
specifications and location coming on stream, and
properties that are offered at better building specifications,
Source: Indonesia Financial System Authorities (OJK)

8 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

particularly in the non-prime areas, impacting the overall Apartment prices have not dropped despite the stagnant
calculation. sales condition. However, we expect apartment price
appreciation will likley be capped, given the stiff
Apartment Price Changes in Jakarta Based on competition and large number of newly completed units,
Area (IDR mio/sq m) coupled with the expected large number of affordable
newly launched projects in the near term. The market will
Q2 Q1 Q2 QOQ YOY
2017 2018 2018 probably take some time to absorb the new supply, and
this gives potential buyers an option to bargain,
CBD 50.08 50.62 50.75 0.3% 1.4% notwithstanding the aggressive promotions and many
South direct prizes introduced by developers to clear off their
Jakarta 37.71 37.75 38.18 1.1% 1.3% inventory.
Non-
prime
Area
Average
24.36
32.41
24.79
32.83
25.21
33.20
1.7%
1.1%
3.5%
2.5%
Apartment for
Lease
Source: Colliers International Indonesia - Research

Average Asking Prices of Apartment in Three

Regions

IDR60
Supply
Asking price/sq m (IDR mio)

None of the upcoming projects is ready for operation in Q2

IDR50
2018, thus the total stock of Jakarta’s apartment-for-lease
IDR40 market remained at 8,860 units. Going forward, we expect
the market to receive at least 847 new serviced apartment
IDR30 units in the next four years. The upcoming new projects
IDR20 are planned to be operated mainly by international
serviced apartment operators such as Oakwood
IDR10 Worldwide, Frasers Hospitality and The Ascott Limited.
The only local operator is Lavish Kemang Residence
IDR0
Serviced Apartment.
2011

2012

2013

2014

2015

2016

2017

2018YTD

The nature of serviced apartments is to cater to middle-

upper class occupiers, and therefore such projects are
mainly located in or around business areas such as the
CBD South Jakarta Non-prime area
CBD and South Jakarta. Serviced apartment projects are
generally characterised by high-standard building
Source: Colliers International Indonesia - Research
maintenance, higher rental rates and global operator
management.

LIST OF FUTURE SUPPLY SERVICED APARTMENT IN JAKARTA

APARTMENT NAME LOCATION REGION EXPECTED NO. OF UNITS

COMPLETION YEAR

Ascott Sudirman Jakarta Jl. Prof Dr Satrio CBD 2018 192

Oakwood Premier at District 8 SCBD CBD 2018 180

Senopati

Somerset Kencana Jakarta Pondok Indah South Jakarta 2018 148

Somerset Sudirman Jakarta Jl. Karet Pasar Baru Central Jakarta 2019 176

Ascott Menteng Jakarta Menteng CBD 2021 151

Fraser Suites Kebon Melati Kebon Melati CBD 2022 TBA

Source: Colliers International Indonesia - Research

9 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

Distribution of Apartment for Lease (Serviced and Occupancy of Apartment for Lease Based on
Non-serviced) Area
West Q2 Q1 Q2 QOQ YOY
North Jakarta 2017 2018 2018
Jakarta 5%
4% CBD 72.5% 75.1% 74.8% -0.3% 2.3%
South 68.4% 68.0% 66.9% -1.1% -1.5%
CBD Jakarta
46%
Non- 69.3% 69.3% 69.6% 0.3% 0.3%
South prime
Jakarta Area
34%
Source: Colliers International Indonesia - Research

Looking forward, the majority of serviced apartments

should see an initial uptick post-Ramadan. For a fact,
serviced apartments will likely be facing increased
Central
Jakarta competition with individually owned apartment units that
11% are offered at smaller lump sum rentals, amid the on-going
diminishing enquiries. Also, in conjunction with the supply
Source: Colliers International Indonesia - Research pipeline, the vacancy rate is projected to climb as the
market needs some time to absorb the incoming supply.
Occupancy
During Ramadan (May-June), average occupancy rate of
Rental Rates
apartments-for-lease was generally flat at 70.7%, Rental tariffs for serviced and non-serviced apartments in
reflecting a minor change compared to the previous Jakarta were relatively stable. A minor adjustment that
quarter of 71.0%. A slight decrease in the overall QOQ occurred in the quarter was mainly due to the correction of
occupancy performance is a result of an intermediate the rupiah’s value against the US dollar. In Q2 2018, the
period of occupation between old and new corporate average asking rental rate in the CBD was registered at
tenants, and also because of expiring contract work IDR367,947/sq m/month, as South Jakarta (including the
permits. non-prime area) showed a relatively stable rate at
IDR224,736/sq m/month.
Occupancy Rate of Based on Type of Apartment
All in all, average asking rental rates, particularly for
Q2 Q1 Q2 QOQ YOY
2017 2018 2018
serviced apartments, will probably experience a marginal
increase throughout the year due to the operation of three
Non- 74.6% 73.9% 73.6% -0.4% -1.0% new projects in the CBD and South Jakarta, namely Ascott
serviced Sudirman Jakarta, Oakwood Premiere at District 8 and
Serviced 62.2% 65.6% 65.5% -0.1% 3.3% Somerset Kencana Jakarta. These upscale serviced
Source: Colliers International Indonesia - Research apartment projects will likely offer higher rental rates
compared with the older projects. Furthermore, with tight
competition from new upcoming projects and individually
owned apartments, the overall rental growth continues to
be moderate in the forthcoming years, around 3-4% per
annum.

10 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International

For more information: Contributors:
Ferry Salanto Hern Rizal Gobi
Senior Associate Director | Research Manager | Research
+62 21 3043 6888
[email protected]

Copyright © 2018 Colliers International.

The information contained herein has been obtained from
sources deemed reliable. While every reasonable effort has
been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to
acting on any of the material contained in this report.

11 Colliers Quarterly | 20 September 2018 | Jakarta | Apartment | Colliers International