Research &

Forecast Report
Jakarta | Apartment
3Q 2015
Accelerating success.

Apartment Sector
Highlight
Despite the weight of multiple downside pressures like sluggish economic growth and lackadaisical demand, overall apartment
prices still witnessed a minor increase of 3.4% QoQ or 11.2% YoY to IDR29.87 million/sq m. This increase is the result of the price
adjustments developers often make due to take-up as their projects near completion. The average take-up rate in 3Q 2015 for under
construction and completed projects was relatively stable at 85.8%, down only moderately from the previous quarter.

Apartment for Strata-title

Supply
Newly Completed Projects during 3Q 2015
Name of development location region developer no. of units
Setiabudi Sky Garden (tower 1) Jl. Karbela Selatan CBD Jakarta Setiabudi International 426
Raffless Residence Jl. Satrio CBD Ciputra 88
The H Residence Jl. MT Haryono East Jakarta Hutama Karya Realtindo 383
Bassura City (Tower Flamboyan) Jl. Basuki Rahmat East Jakarta Synthesis Development 1,000
Senopati Penthouse Jl. Senopati Kav 45 South Jakarta Senopati Aryani Prima 63
Providence Park Jl. Kalimaya - Iskandar Muda South Jakarta PT Sinar Pamaronda 114
Satu8 Residence Jl. Pilar Komp. Delta, Kedoya West Jakarta PT Karya Cipta Sukses Selaras 168
Capitol Park (Tower Safir) Jl. Salemba Raya Central Jakarta PT. Wikaraga Sapta Utama 976
Source: Colliers International Indonesia - Research

The completion of seven projects contributing an additional operating units this quarter. The completion of Raffles Residence
3,218 units increased the inventory of strata-title apartments in will add more units in the category of luxury apartment in the
Jakarta to a total of 152,358 units; up by 2.2% QoQ or 9.4% YoY. CBD area.
The majority of the new completed projects were brand-new Despite undergoing downside pressure on sales activity,
projects, except for the Bassura City project with its new tower developers still set positive expectations on the property market,
called Flamboyan Tower (an extension of the first completed especially for residential projects, largely in view of the mature
tower, Geranium Tower). Of the 3,218 newly available units this demographic profile and rising middle-class. In addition, Jakarta
quarter, Bassura City is the project with the highest number of City is anticipating massive improvements in infrastructure
units. 79% of the 3,218 units are categorised as middle-class development including LRT (Light Rail Transit), MRT (Mass
apartment including Bassura City itself together with The H Rapid Transit) and toll roads which are expected to boost
Residence, Satu8 Residence and Capitol Park (Tower Safir). demand for residences within the catchment area, as well as the
Other than the Basura City project, there are mainly projects with value of properties in the surroundings.
limited units, suggesting the exclusivity of the development. This
Eight strata-title apartment projects, consisting of 3,308 units,
includes projects like Setiabudi Sky Garden, Senopati Penthouse
were also launched or introduced between July and September
and Providence Park which represent 19% of the total newly
2015. These projects are slated for completion from 2018 to 2020.

1 Research & Forecast Report | 3Q 2015 | Office | Colliers International

 Newly Introduced/Launched Apartment in 3Q 2015
Expected
Name of development LOCATION region completion ASKING price/sq m* No. of Units
time
The Elements Epicentrum (2 towers) Rasuna Said CBD 2018 IDR36,000,000 372
Menteng 37 Menteng Central Jakarta 2018 IDR47,000,000 99
The Linq Kemayoran Central Jakarta 2019 IDR22,600,000 922
Ratu Prabu 3 Residences TB. Simatupang South Jakarta 2018 to be announced 61
Fatmawati City Center (1st phase) Fatmawati South Jakarta 2019 IDR 35,000,000 900
Royal Park Kebayoran Cipulir South Jakarta 2019 IDR 25,000,000 630
Ammi Residence Dharmawangsa South Jakarta 2019 IDR 46,000,000 136
The Residence Gatot Subroto Gatot Subroto South Jakarta 2020 IDR 35,500,000 188
*Exclude VAT
Source: Colliers International Indonesia - Research

Quite a few future projects (58% of the total future apartments) Total Number of Units Being Introduced or Launched
will be located in South Jakarta. In line with massive commercial During 2015YTD in Each Region
development in TB Simatupang and surrounding areas, more
new apartment projects are under construction and in planning, 6,000
including Ratu Prabu 3 Residences and Fatmawati City Centre
that cater to the middle- to upper-class segment. In the south,
a crème de la crème residential area, Dharmawangsa will see 5,000
an upscale project called Ammi Residence, complementing the
other existing upper-class projects in the neighbourhood. Other 4,000
future apartment projects being launched this quarter are Royal
Park Kebayoran, located in Cipulir, and The Residence Gatot
Subroto; both are targeted at the middle class. 3,000
units

Prime area like Menteng still continue to be a preferred location

2,000
for upper-class residences, despite having limited land to
develop. Pikko Land and PT Wijaya Wisesa will develop a
joint venture apartment project called Menteng 37, aiming at 1,000
upper-class buyers. With a similar target market, Sinar Mas
Land will build The Elements in Rasuna Epicentrum business
0
compound, comprising two towers, with 2- to 3-bedroom units.
Another newly launched project, The Linq, will be located in the CBD Central South North East West
Kemayoran area. This project is targeting the middle-class market Jakarta Jakarta Jakarta Jakarta Jakarta

segment and will be developed by KG Global Development, the Source: Colliers International Indonesia - Research
same developer that built The City Tower, TCC Batavia, Tamini
Square and the future Mangkuluhur project.
The government has recently released a stimulus package aimed
During 2015YTD, a total of 18,317 units have been introduced at luring more investment to Indonesia. One of the policies
to the market, a large proportion of which are new projects includes investment in the property sector. The government
in the South Jakarta area. By number of units and number of will push to provide housing accommodation for low-income
projects, South Jakarta has 30 and 52% of the apartment supply, households, while widening investment opportunities in the
respectively, followed by West Jakarta, with 17 and 25%. South domestic property sector, which allows foreign ownership of
and West Jakarta continue to be growing residential areas, luxury condominiums priced at a minimum of IDR10 billion
taking advantage of established and good accessibility to the (approximately USD700,000)/unit. This plan sounds like a
downtown as well as better infrastructure and facilities. These positive endorsement for developers, especially those who
include access to the toll road, airport, international schools and build upscale projects. However, we expect that the regulation
shopping centres. East Jakarta continues to be the choice of both will have little impact on the overall sales activities because the
investors and end-users in the middle-lower segment. market share of this segment only represents less than 1% of the
total 96,781 units in the market that are offered at IDR10 billion/
unit.

2 Research & Forecast Report | 3Q 2015 | Office | Colliers International

Total Number of Projects Being Introduced or Future Supply Units (2015 - 2020) Based on Class
Launched During 2015YTD in Each Region

CBD Luxury Low

Upper
West 7% 1% 5%
11%
Jakarta
17% Central
Jakarta
East
17%
Jakarta
4%

North
Jakarta
3%

Middle-Upper Middle-Lower
36% 47%
South
Jakarta
52%

Source: Colliers International Indonesia - Research Source: Colliers International Indonesia - Research

Apartment Development in the Pipeline (2015 - 2019)

Apartment name location region no. of units

2015

The Grove (Empyreal + Masterpiece) Jl. HR Rasuna Said CBD 438

Ciputra World - Luxurious Raffles Residences Jl. Prof Dr Satrio CBD 64
Setiabudi Sky Garden (tower 1) Jl. Karbela Selatan CBD 426
Setiabudi Sky Garden (tower 2) Jl. Karbela Selatan CBD 160
Elpis Residence Gunung Sahari Central Jakarta 790
Capitol Park Apartment (Tower T) Jl. Salemba Raya, Menteng Central Jakarta 727
Capitol Park Apartment (Tower U) Jl. Salemba Raya, Menteng Central Jakarta 976
The Mansion at Dukuh Golf Residence (Aurora Tower) Jl. Benyamin Sueb Kemayoran Central Jakarta 522
The Mansion at Dukuh Golf Residence (BellaVista Tower) Jl. Benyamin Sueb Kemayoran Central Jakarta 612
The Royal Springhill (Lotus Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta 192
The Royal Springhill (Bouvardia Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta 120
Casablanca East Residence (2 Twr) Jl. Pahlawan Revolusi East Jakarta 1,904
The H Residence MT Haryono East Jakarta 383
Bassura City (Tower Flamboyan) Jl. Basuki Rahmat East Jakarta 1,000
Bassura City (Tower Edelweiss) Jl. Basuki Rahmat East Jakarta 1,000
Bassura City (Tower Dahlia) Jl. Basuki Rahmat East Jakarta 1,000
Titanium Square Jalan Raya Bogor Kav. 27 Pasar Rebo East Jakarta 725
Bassura City (Tower Geranium) Jl. Basuki Rahmat East Jakarta 900
Pluit Seaview (Tower Maldives) Pluit North Jakarta 940
Northern Ancol Residence Jl. Laksamana R.E. Martadinata, No. 26 North Jakarta 800
Teluk Intan (Tower Saphire) Jl. Teluk Gong North Jakarta 1,100
Callia Apartment Jl. Perintis Kemerdekaan North Jakarta 560
The Oak Tower (2 Towers) Jl. Perintis Kemerdekaan North Jakarta 821
Green Bay Pluit (Sea View) Jl. Pluit Karang Ayu North Jakarta 2,072
The Royal Olive Residence (Tower I) Jl. Buncit Raya South Jakarta 297
Senopati Penthouse Jl. Senopati Kav 45 South Jakarta 63
continued

3 Research & Forecast Report | 3Q 2015 | Apartment | Colliers International

 Apartment name location region no. of units
continuation
Senopati Suites 2 Jl. Senopati South Jakarta 81
LA City Apartment (Tower A) Jl. Raya Lenteng Agung, Jagakarsa South Jakarta 980
La Maison Barito (Tower 1) Barito South Jakarta 80
Nine Residence Warung Buncit South Jakarta 246
Providence Park Jl. Kalimaya - Iskandar Muda South Jakarta 114
Kencana Residence Jl. Sultan Iskandar Muda South Jakarta 173
Niffaro Apartment (Ebony Tower) Jl. Kalibata Raya South Jakarta 288
La Venue - South Tower Jl. Pasar Minggu South Jakarta 341
Botanica Apartment (3 Towers) Simprug, Kebayoran Baru South Jakarta 626
Woodland Park (Trambesi tower) Jl. Kalibata Raya South Jakarta 221
Belmont Residence (Tower Montblanc) Jl. Meruya Ilir West Jakarta 350
Green Palm Residence @ Puri Jl. Kosambi West Jakarta 1,000
Metro Park Residence Kebon Jeruk West Jakarta 1,451
St. Moritz (New Presidential Tower) Jl. Puri Indah West Jakarta 159
Satu8 Residence Jl. Pilar Komp. Delta, Kedoya West Jakarta 174
The Nest Apartment Jl. Raden Saleh Raya, Meruya Utara West Jakarta 1,100
19 Avenue Apartment 9 (Tower A) Daan Mogot West Jakarta 338

2016

The Residence (CWJ 2) Jl. Prov Dr Satrio Kav 6, Kuningan CBD 119
The Orchad Satrio (CWJ 2) Jl. Prov Dr Satrio Kav 6, Kuningan CBD 349
Gayanti City (2 Towers) Jl. Gatot Subroto CBD 318
T - Plaza Residence (Tower A) Jl. Penjernihan I Kav.1 Pejompongan Central Jakarta 307
Sentosa Residence Cempaka Putih Central Jakarta 687
Sudirman Hill Residence Jl. Karet Pasar Baru Central Jakarta 255
The Green Pramuka (Tower Orchid) Jl. Jenderal Ahmad Yani Central Jakarta 1,000
The Green Pramuka (Tower Penelope) Jl. Jenderal Ahmad Yani Central Jakarta 1,000
The Green Pramuka (Tower Scarlet) Jl. Jenderal Ahmad Yani Central Jakarta 1,000
Capitol Suites Jl. Prapatan Raya Central Jakarta 327
The H Residence Kemayoran (Amethyst) Jl. Rajawali Selatan Central Jakarta 800
The Royal Springhill (Bulgari Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta 192
Holland Village (Phase II) Cempaka Putih Central Jakarta 230
Signature Park Grande Jl. MT. Haryono East Jakarta 1,100
Bassura City (Tower Cattleya) Jl. Basuki Rahmat East Jakarta 600
East Park Apartment (Tower C) Jl. KRT Radjiman East Jakarta 550
Bassura City (Tower Alamanda) Jl. Basuki Rahmat East Jakarta 600
Sentra Timur Residence (Tower Tosca) Pulo Gebang East Jakarta 133
Pluit Seaview (Tower Belize) Pluit North Jakarta 300
Pluit Seaview (Tower Ibiza) Pluit North Jakarta 500
Pluit Seaview (Tower Bahama) Pluit North Jakarta 650
Marina The Coastal Ancol North Jakarta 1,500
La Venue - North Tower Jl. Pasar Minggu South Jakarta 253
Kemang Village (The Bloomington) Jl. P Antasari South Jakarta 150
Senopati Suites 3 Jl. Senopati South Jakarta 54
1 Park Avenue (3 Towers) Jl. KHM Syafi'I Hadzami (terusan gandaria) South Jakarta 279
Pakubuwono Terrace Grand Tower Kebayoran Lama South Jakarta 435
District 8 (Tower Eternity) Jl. Senopati South Jakarta 400
District 8 (Tower Infinity) Jl. Senopati South Jakarta 280
continued

4 Research & Forecast Report | 3Q 2015 | Apartment | Colliers International

 Apartment name location region no. of units
continuation

Izzara Apartment (South and North Tower) TB. Simatupang South Jakarta 542
Lexington Rersidence Pondok Pinang South Jakarta 275
Apartment Pejaten Park Residence Jl. Warung Buncit Raya No.21 South Jakarta 560
The Aspen Peak at Admiralty (Tower C) Jl. Fatmawati South Jakarta 322
Four Winds Jl. Permata Hijau Raya No.1 South Jakarta 122
Bellevue Place MT Haryono, Tebet South Jakarta 240
Kebayoran Icon Jl. Ciledug Raya South Jakarta 256
One Casablanca Residence Jl. Pal Batu South Jakarta 215
Grand Dhika Mansion Pejaten (Sector 1) Jl. Siaga Raya South Jakarta 44
Sapphire Residence Lebak Bulus South Jakarta 37
Woodland Park (Mahogany Tower) Jl. Pahlawan Kalibata South Jakarta 218
St Moritz (The New Ambassador Suite Tower) Jl. Puri Indah Kembangan West Jakarta 200
The Windsor (Tower II) Jl. Puri Indah West Jakarta 164
Gianetti Apartment Jl. Kebon Jeruk Raya, Kemanggisan West Jakarta 500
Gallery West Jl. Panjang No 5 West Jakarta 280
Green Park View (Tower G) Jl. Daan Mogot West Jakarta 1,200
Belmont Residence (TowerAthena) Jl. Meruya Ilir West Jakarta 193
Puri Mansion Apartment (Tower Amethyst) Jl. Lingkar Luar Barat, Puri Kembangan West Jakarta 900
Madison Park Tanjung Duren West Jakarta 1,200
Veranda Jl. Pesanggrahan Raya, Kembangan West Jakarta 174

2017

Sudirman Suites Jl. Sudirman CBD 380

Domaine Jl. Jend. Sudirman Kav 1 CBD 186
Verde Two (Tower East) Jl. Rasuna Said CBD 182
Anandamaya Residences (3 towers) Jl. Jend Sudirman CBD 500
Central 88 (2 Towers) Jl. Trembesi, Kemayoran Central Jakarta 612
Menteng Park Jl. Cikini Raya No.79 Central Jakarta 756
Holland Village Cempaka Putih Central Jakarta 400
Royal Suites Kemayoran Central Jakarta 450
The Green Pramuka (Tower Nerine) Jl. Jenderal Ahmad Yani Central Jakarta 1,000
Green Signature Apartment Jl. MT. Haryono East Jakarta 800
Podomoro Park Jl. I Gusti Ngurah Rai, Klender East Jakarta 3,000
Sentra Timur Residence (Tower Brown) Pulo Gebang East Jakarta 605
Bassura City (Tower Jasmine) 2 tower Jl. Basuki Rahmat East Jakarta 2,000
Bassura City (Tower Heliconia) Jl. Basuki Rahmat East Jakarta 700
La Terrasse Jl. Deplu Raya No.12 South Jakarta 111
The Foresque Pasar Minggu, Ragunan South Jakarta 660
The Langham Residences Senopati South Jakarta 57
Antasari Heights Jl. Pangeran Antasari No.8 South Jakarta 360
The Batik @ Pejaten Jl. Siaga Raya South Jakarta 137
La Foret Vivante Jl. Limo, Permata Hijau South Jakarta 253
Selatan 8 (Tower Sultan) Kebayoran Lama South Jakarta 336
The Hamilton Jl. KHM Syafi'I Hadzami South Jakarta 112
Puri Orchad (3 Tower) Jl Raya Adicipta West Jakarta 3,000
Maqna Residence Jl. Meruya Ilir No. 88 West Jakarta 312
Vittoria Residence (3 tower) Jl. Daan Mogot West Jakarta 1,100
continued

5 Research & Forecast Report | 3Q 2015 | Apartment | Colliers International

 Apartment name location region no. of units
continuation
Wang Residence Jl. Panjang No 18 West Jakarta 250
Taman Anggrek Residence (6 towers) Tanjung Duren West Jakarta 3,000
19 Avenue Apartment (Tower B) Daan Mogot West Jakarta 416
Sycamore Suites Puri Botanical West Jakarta 125
Regatta London Tower Jl. Pantai Mutiara North Jakarta 186

2018

Verde Two (Tower West) Jl. Rasuna Said CBD 152

Lavie Jl. Denpasar Raya CBD 302
South Hill Jl. Denpasar Raya CBD 611
Le' Parc Jl. Thamrin CBD 100
Regent Residences (tower 1) Semanggi CBD 100
The Hundred Residence Mega Kuningan CBD 100
The Elements (2 towers) Rasuna Said CBD 372
Core Sky Residence Pulo Gebang East Jakarta 282
Sahid Garden Residence Ciracas East Jakarta 476
Menteng 37 Menteng Central Jakarta 99
Regatta Apartment (Tower New York) Pantai Mutiara North Jakarta 186
Sedayu City (Tower Berlin) Jl. Pegangsaan Dua Raya North Jakarta 912
The Kensington Royal Suites (4 Tower) Kelapa Gading North Jakarta 790
Jaya Ancol Seafront - Oceana Tower Pademangan, Ancol North Jakarta 524
Gold Coast Apartment (Bahama Tower) Pantai Indah Kapuk North Jakarta 600
Gold Coast Apartment (Carribean Tower) Pantai Indah Kapuk North Jakarta 600
Gold Coast Apartment (Honolulu Tower) Pantai Indah Kapuk North Jakarta 600
Grand Marina Ancol Ancol North Jakarta 672
Gold Coast Apartment (Atlantic Tower) Pantai Indah Kapuk North Jakarta 568
The Aspen Peak at Admiralty (Tower D) Jl. Fatmawati South Jakarta 322
Casa Grande Residence 2 (Tower Angelo) Jl. Casablanca South Jakarta 350
Casa Grande Residence 2 (Tower Bella) Jl. Casablanca South Jakarta 350
Casa Grande Residence 2 (Tower Chianti) Jl. Casablanca South Jakarta 350
Pondok Indah Residences (3 Towers) Pondok Indah South Jakarta 880
Selatan 8 (Tower Prabu) Jl. Raya Ulujami South Jakarta 344
45 Antasari (2 Tower) Antasari South Jakarta 1,924
Arzuria Apartment Jl. Tendean South Jakarta 210
Pakubuwono Spring (2 towers) Jl. Teuku Nyak Arief No.9 South Jakarta 545
Branz Simatupang (2 tower) TB. Simatupang South Jakarta 381
Synthesis Residence Kemang Jl. Ampera Raya South Jakarta 1,100
The Ease Brawijaya Jl. Taman Brawijaya III Kebayoran Baru South Jakarta 54
Royal Olive Residence (Tower 2) Jl. Buncit Raya South Jakarta 231
Kemang Penthouse Kemang South Jakarta 262
Ratu Prabu Residence 3 TB. Simatupang South Jakarta 61
Ciputra International Puri Indah (Tower Amsterdam) Jl. Lingkar Luar Barat West Jakarta 412
Grand Madison Park Tanjung Duren West Jakarta 300
Citra Lake Suites (Tower Rosewood) Jl. Raya Kresek West Jakarta 104
Citra Lake Suites (Tower Greenwood) Jl. Raya Kresek West Jakarta 126
Citra Lake Suites (Tower Oakwood) Jl. Raya Kresek West Jakarta 117
Citra Lake Suites (Tower Sherwood) Jl. Raya Kresek West Jakarta 122
Aerium Taman Permata Buana Taman Permata Buana West Jakarta 550
continued

6 Research & Forecast Report | 3Q 2015 | Apartment | Colliers International

 Apartment name location region no. of units
continuation
Ciputra International Puri Indah (Tower Barcelona) Jl. Lingkar Luar Barat West Jakarta 335
Puri Mansion Apartment (Tower Crystal) Jl. Lingkar Luar Barat, Puri Kembangan West Jakarta 700
West Vista (2 towers) Jl. Lingkar Luar Barat No.8, Duri Kosambi West Jakarta 2,840
Citra Living Apartment (Somerset Tower) Jl. Citra 7, Kalideres West Jakarta 312

2019

Menara Jakarta (Tower Equinox) Kemayoran Central Jakarta 396

Menara Jakarta (Tower Azure) Kemayoran Central Jakarta 860
Orient Residence Jl. Yos Sudarso, No 76 North Jakarta 225
Green Sedayu Apartment (Tower Pasadena) Jl. Kamal Raya, Cengkareng West Jakarta 896
Fatmawati City Center (1st phase) Fatmawati South Jakarta 900
Royal Park Kebayoran Cipulir South Jakarta 620
The Linq Kemayoran Central Jakarta 922
Ammi Residence Dharmawangsa South Jakarta 136
The Residence Gatot Subroto Gatot Subroto South Jakarta 188
Source: Colliers International Indonesia - Research

Demand Bank Indonesia’s relaxed policy through the new LTV regulation
has yet to have a direct positive impact on the pre-sales activity
The first semester of 2015 was a hardship period for the and mortgage demand, in our opinion mainly because the
apartment market. In general, the apartment market during 3Q interest rate is still high. As a result, developers / companies
2015 remained challenging. The continuing rupiah depreciation continue to offer longer in-house financing (cash instalments)
against the US dollar and slower economic growth (which has and balloon payment to the buyers. In our view, despite the fact
been below 5%) has been the main cause of the slowdown in that Bank Indonesia has raised the loan-to-value ratios (from
sales. Potential buyers, particularly investors, are now becoming 30% : 70% to 20% : 80%), the prevailing regulation that bans
more cautious and prudent in spending their money. on indent mortgage contributed to the slowdown in demand,
especially for the under-construction projects.
Overall, the average take-up rates in 3Q 2015 remained at 85.8%,
down moderately from the previous quarter. The table below For some time, the CBD has remained the preferred location
shows that the existing apartment market recorded a positive and with limited land to be developed, this area continues to
sales trend, albeit moderate, while the pre-sales of under- record the highest average take-up rate of 96.8% compared to
construction apartments slipped by less than 1% compared to the other areas. This figure suggests a modest increase of 2.1%
the previous quarter. Additionally, the softening demand in pre- from the previous quarter or 1.5% YoY as a result of continued
sales activity is also due to the wait-and-see attitude of investors absorption of both existing and under-construction apartment
waiting for further conducive measures from the government units, besides the fact that there is only a limited number of
regarding a number of proposed regulatory changes, including projects being offered in CBD. Similarly, the apartment market
land and building tax, foreign ownership and luxury tax in the non-prime area also recorded an upward trend, albeit a
(PPnBM). moderate one, during the reviewed quarter. As part of investment
instruments, the property sector, in particular apartments,
remains attractive for domestic investors. With relatively
Take-up Rate Performance of Existing and Under- reasonable prices, apartment projects in the non-prime areas
construction Projects have appealed to individual investors who hope to protect their
wealth in the midst of a dismal economy.
2Q 2015 3q 2015 QoQ
Existing Projects 95.8% 96.0% 0.2% In the other favourite home location, South Jakarta, sales
Pre-Sales Rates (of under construction 69.0% 68.6% -0.4% performance has weakened since the beginning of 2015,
projects) largely affected by the influx of abundant new projects (52% of
Average (existing and under construction 85.9% 85.8% -0.1% the total newly introduced/launched projects) which was not
projects) counterbalanced by the same absorption rate.
Source: Colliers International Indonesia - Research

7 Research & Forecast Report | 3Q 2015 | Apartment | Colliers International

Average Take-up Rate Performance in Three Major Asking Price
Areas
Under the weight of multiple downside pressures like sluggish
100% economic growth and lackadaisical demand, the overall
90%
apartment price still witnessed a minor increase this quarter. The
average price increased by 3.4% QoQ or 11.2% YoY to IDR29.87
80% million/sq m (based on hard-cash payment scheme excluding
70% VAT). However, the figures below show that the pace of increase
in prices continued to slow, evidenced by the current annual
60%
growth that is lower than the average growth in the last four years.
50%

40% Annual Apartment Asking Price During 2011 – 2015

30% 35,000,000

20%
30,000,000
10% R
CAG
0% + 15%

Average P rice/s q m (IDR )

25,000,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015
20,000,000
CBD Non-prime South Jakarta

Source: Colliers International Indonesia - Research 15,000,000

Take-up Rates of Under-construction Projects in Three 10,000,000

Major Areas
2Q 2015 3q 2015 QoQ 5,000,000

CBD 85.5% 87.6% 2.1%

Non-prime Area 68.1% 68.9% 0.8% 0

South Jakarta 66.9% 63.6% -3.3% 3Q 2011 3Q 2012 3Q 2013 3Q 2014 3Q 2015

Source: Colliers International Indonesia - Research Source: Colliers International Indonesia - Research

In the middle of September, the Ministry of Finance indicated Price adjustments during the quarter are mainly triggered
that the luxury tax (PPnBM) of 20% is only imposed on property by continuing construction progress that maintains market
transactions for houses and apartments worth more than IDR10 confidence. Projects approaching the hand-over stage seem to
billion (approximately USD700,000). The threshold for the super- have limited available units, which also led to the adjustment in
luxury tax (PPH 22) was revised during 2Q 2015 from IDR10 to prices. Another factor that stimulates price adjustments is that
5 billion. At this stage, we are still waiting for a comprehensive some apartment projects offer semi-furnished units, equipped
regulation so that the luxury tax and super-luxury tax will not with stove, kitchen cabinets, water heater and air-conditioner,
overlap. In general, such an incentive would stimulate the which force prices higher.
residential property market to further move forward.
Although there might be a sizeable pool of potential investors
Another hot issue but remains uncertain is to allow foreign or buyers waiting on the side-lines, these buyers are now
ownership of Indonesian property in a bid to boost tax revenue more selective and will only commit if desired projects have
as well as the domestic property industry. This will enable a competitive price. Furthermore, in the middle of slowing
foreigners (expatriates) to buy, own, inherit and trade luxury economic conditions, psychologically, buyers or investors might
apartments that have a minimum value of IDR10 billion on a be reluctant to make a purchase now.
“right to use” or “hak pakai” title. The IDR10 billion minimum
value of the luxury apartments has not yet formally decided.
Nevertheless, in our opinion such a regulation would not
Average Asking Price (in IDR) in Three Different
significantly accelerate sales activity because there are only a few Regions
apartment projects with units valued above IDR10 billion (circa 3Q 2014 2Q 2015 3Q 2015 QoQ YoY
1% from the total of under-construction units). CBD 41,759,,611 45,279,368 46,322,208 2.3% 10.9%
Non-prime area 20,320,645 21,646,375 22,429,188 3.6% 10.4%
South Jakarta 31,241,685 33,469,503 34,699,316 3.7% 11.1%
Source: Colliers International Indonesia - Research

8 Research & Forecast Report | 3Q 2015 | Apartment | Colliers International

Apartment For Lease Supply Distribution of Apartments for Lease
West
For the last two consecutive quarters, Jakarta has not seen any North Jakarta
new projects of apartments for lease, after Ascott Kuningan Jakarta 6%
began operation in the last quarter of 2014. During the reviewed 5%
quarter, one serviced apartment building started operations,
namely Ra Residence, developed by Lembonghouse, which
is renowned for its service in providing houses for expatriates. CBD
Located in a growing business district in South Jakarta, TB 44%
Simatupang, Ra Residence consists of 110 units, ranging from
studios to 3-bedroom apartments. South
Jakarta
With the completion of Ra Residence, the cumulative supply of 35%
apartments for lease increased by 1.3% QoQ to 8,629 units. Of
these, 59% are serviced apartments. There was no significant
change from last quarter in terms of location, where apartments
for lease in Jakarta are mainly scattered around the CBD and
South Jakarta areas, at 44 and 35%, respectively. There are
currently three serviced apartment projects in the pipeline Central
which are expected to be completed in 2015 - 2016. Jakarta
10%
Source: Colliers International Indonesia - Research
Detail Unit in Ra Residence
Type Size (sq m) No. of UNIT
30 11
Studio
32 48
40 13
1BR 64 32
2BR 96 4
3BR 128 2
Source: Colliers International Indonesia - Research

Serviced Apartment in the Pipeline

Name of Development Location Year of Operation Operator no. of units
Fraser Place at Setiabudi Sky Garden Jl. Karbela Selatan 2015 Frasers Hospitality 150
Fraser Suites at Ciputra World Jakarta 2 Jl. Prof Dr Satrio 2016 Frasers Hospitality 200
Oakwood at District 8 Senopati Jl. Senopati 2016 Oakwood 180
Source: Colliers International Indonesia - Research

Occupancy Rate QoQ Occupancy Performance Based on Region (%)

As of 3Q 2015, the overall occupancy rate of apartments for Area 2Q 2015 3Q 2015 QoQ
lease in Jakarta experienced a slight decrease compared to the CBD 79.4% 79.5% 0.1%
previous quarter. In terms of location, the CBD area recorded Non-prime Area 70.0% 70.0% 0.0%
a modest increase of 0.1% over the previous quarter to 79.5%. South Jakarta 76.4% 73.1% -3.3%
The increase was mainly due to short-term leases for serviced
Source: Colliers International Indonesia - Research
apartments, which constituted about 20 - 30% of the total
occupied units. There was no change in the overall occupancy
rate in nonprime areas. On the other hand, the new operating Ra The main cause of the decreasing occupancy rate is the
Residence is the main reason for the sluggish occupancy rate of expiration of employment contracts, as reported by most
serviced apartments, particularly in the South Jakarta area. apartment buildings. Another issue that likely affects the overall
occupancy rate is tenants’ relocation from Jakarta to industrial
areas, particularly apartment building that have a large number
of Japanese tenants.

9 Research & Forecast Report | 3Q 2015 | Apartment | Colliers International

Occupancy Rate of Serviced Apartments and Non- Overall Rental Rate Based on Area
serviced Apartments
Area Rental rate (/sq m/month)
100% CBD IDR 362,471

90% South Jakarta (incl. Non-prime) IDR 211,067

Source: Colliers International Indonesia - Research
80%

70%
Rental Rate for Serviced Apartments
60%
Area Rental rate (/sq m/month)
50% CBD IDR 434,488
40% South Jakarta (incl. Non-prime) IDR 337,351
Source: Colliers International Indonesia - Research
30%

20%
Rental Rate for Non-serviced Apartments
10%
Area Rental rate (/sq m/month)
0%
CBD IDR 227,439
2007 2009 2011 2013 2015YTD South Jakarta (incl. Non-prime) IDR 175,636
Non-serviced Apartment Serviced Apartment Source: Colliers International Indonesia - Research

Source: Colliers International Indonesia - Research

Average Rental Rates (IDR/sq m/month) for Different

Rental Rates Types of Apartments for Lease
South Jakarta
According to the Bank Indonesia regulation on the mandatory CBD (incl. non-prime
use of the rupiah (IDR) in every transaction within Indonesia, areas)
apartments for lease (both serviced and non-serviced) have Average Rent for all Leased IDR 362,471 IDR 211,067
started to charge rents in IDR since June of this year. So far, Apartment
the response from expatriates has been quite positive. They Serviced Apartment IDR 434,488 IDR 337,351
welcome the regulation and so far there is no confusion among Non-serviced Apartment IDR 227,439 IDR 175,636
the companies from which the tenants originate. Source: Colliers International Indonesia - Research

We found a case where apartments for lease, both serviced

and non-serviced, are still using US dollars as the basis for Concluding Thought
rents because the majority of their tenants are expatriates who
find it easy to conceptualise the number in US dollars. Despite In order to boost a sagging economy, the government has
quoting in US dollars, at payment time, it should be in rupiah recently initiated some economic stimulus packages. Stimulus
and therefore there are some possible mechanisms to decide measures that are related to the property sector are foreign
the basis for the conversion. This includes using a floating rate, a ownership of Indonesian property and a revision of the luxury
bookkeeping rate or a fixed rate. The widely applied system is the tax regulations that will likely change the threshold to IDR10
floating rate, which always refers to the prevailing exchange rate billion for apartments to incur a 20% tax. These regulations are
on the date of transaction. In our view, this floating rate system focused on attracting overseas capital to boost domestic growth
is similar to paying in US dollars because the amount of rupiah and to spur new business.
that the lessee has to pay is similar to the value of US dollars on
the date of transaction. The other system is the booking rate, However, the proposal is not yet final, leaving uncertainty in the
which is fairly similar to the floating rate, except that the rate is apartment market and likely leading to a further slow-down in
valid for one month ahead regardless of the daily fluctuation in sales in the upcoming quarter. Moreover, if there is no revision
the exchange rate. The latest system is the fixed rate where the of the Super Luxury Tax there will be a conflict with the newly
value of conversion is contractual in advance for at least one year proposed luxury tax, since the price threshold for super-luxury
despite the volatility in the exchange rate. (IDR5 billion) is lower than for luxury properties (IDR10 billion).
All in all, the government needs to clarify the ruling to remove
the uncertainties among investors and developers in the market.

10 Research & Forecast Report | 3Q 2015 | Apartment | Colliers International

502 offices in Primary Authors:
Ferry Salanto

67 countries on Associate Director | Jakarta

62 21 521 1400 ext 134
[email protected]

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