SBY-Colliers Market Report 1H 2013

1h 2013 i the knowledge
research & forecast report
SURABAYA REAL ESTATE
Property Sector Overview

office sector
Total office stock in Surabaya is 278,598 sq m which represents only 4% of the total office stock
in DKI Jakarta. However, the office market in Surabaya is expected to further grow and is
anticipating additional 318,821 sq m of office space over the next four years. Meanwhile, the
average asking base rental rate in Surabaya was recorded at IDR85,233/sq m/month which was
only 40% of the average rental rate in Jakarta.
apartment sector
As of 1H2013, leased and strata-titled apartment in Surabaya totaled at 15,339 units. Again, by
comparison this number represents only 11.5% of the supply in Jakarta. From 2H2013 to the end
of 2015, the Surabaya market expects to see an additional 13,918 units.
The price of apartments in Surabaya is recorded at an average of IDR15.8 million/sq m/month
which is about 30% lower than the average price in Jakarta.
retail sector
Total retail space in Surabaya was registered at 957,088 sqm of which 61% represents
leased malls. Between the period of 2H2013 and 2016, another 261,750 sq m is
expected to come to the market. Meanwhile with 83% occupancy rate, the average
asking base rental rate for retail in Surabaya is recorded at IDR375,076/sq m/month or
80% of the rental rate in Jakarta.
HOTEL SECTOR
There are a total number of 39 star-rated hotel projects in Surabaya providing a total of 6,619
rooms. There will be a significant increase in the number of hotel room between 2013 and 2015
with 20 new star-rated hotels providing 4,251 rooms. The average occupancy rate was registered
at between 61% and 69% during the 1H 2013. The ARR for 3-star hotels was IDR342,409; for
4-star hotels, IDR395,602; and for 5-star hotels, IDR649,556.
www.colliers.com
SURABAYA | 1h 2013 | OFFICE
Office Sector
Colliers International Indonesia - Research
Supply
CUMULATIVE SUPPLY of office space
750,000
sq m
600,000
450,000
300,000
150,000
2017F
2016F
2015F
2014F
2013F
2012
2011
2010
Annual Supply
2013YTD
Existing Supply
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
The growth of the office supply in Surabaya

was sluggish particularly from 2000 to 2012.
During that 12-year period, there was only a
total of 92,424 sq m of new additional office
space, with the supply growing only 3%
annually. With no new office buildings expected
to enter the market, the cumulative supply in 1H
2013 was 278,598 sq m. For the remainder of
2013, there will be no new office buildings
beginning operations.
implemented. This situation will likely continue,

particularly driven by the demand from small
businesses. On the other hand, the opportunity
may come from medium to large business
entities which need bigger office space. Some
developers predict that demand will grow by 10
to 15% in 2013, mainly derived from mid-scale
companies needing office space below 300 sq
m. Such companies come from Jakarta or other
areas to open a branch office in the city.
The office market in Surabaya is not comparable

to that in Jakarta. The business people in
Surabaya are characteristically low profile and
tend not to opt for prestige. Local companies
may have offices in a house or use part of their
factory building for office uses because zoning
regulations for office use is not stringently
Notwithstanding the limited new office supply,

the office market in Surabaya is anticipating a
boom in supply from 2014 to 2016. With a
projection of 234,081 sq m of additional office
supply, the three years ahead will see an annual
growth of 20%.
p. 2
| Colliers International
CUMULATIVE SUPPLY of office space based on marketing scheme

750,000
sq m
600,000
450,000
300,000
150,000
2017F
2016F
2015F
2014F
2013F
2012
2011
2010
2009
For Strata-title
2013YTD
For Lease
2008
2007
2006
2005
2004
2003
2002
2001
2000
new office supply pipeline (2014 - 2017)
office building name
location
SGA
(SQ M)
developer name
marketing scheme
2014
Marvel City
Jl. Ngagel
12,000 Consortium Kencana Group, PT Dian Istana and

PT Avila Prima
For Lease
Puncak Bukit Golf Square
Jl. Bukit Darmo Boulevard
30,000 PT Surya Bumimegah Sejahtera (Puncak Group)
For Lease
Skyline Office Tower
Jl. Mayjen Sungkono
38,821 PT Menara Bumi Sejahtera
For Lease
Graha Pena II
Jl. A Yani
The Samator
Kedung Baruk
25,000 PT Samator Land
For Lease
Puncak CBD Jajar Tunggal
Jl. Jajar Tunggal
30,000 PT Surya Bumimegah Sejahtera (Puncak Group)
For Lease
One Galaxy
Jl. Dharmahusada
40,000 PT Puri Galaxy (Sinar Galaxy Group)
For Lease
Office @Jl. A Yani
Jl. A Yani
30,000 PT Trikarya Graaha Utama
For Strata-title
Pakuwon Center
Jl. Basuki Rahmat
20,260 Pakuwon Group
For Lease &

For Strata-title
Tunjungan Plaza VI
Jl. Basuki Rahmat
39,740 Pakuwon Group
For Lease &

For Strata-title
Intiland Tower Extention
Jl. Panglima Sudirman
20,000 PT Intiland Development Tbk
For Lease
CitraRaya City Center
Kota CitraRaya
25,000 PT Ciputra Surya Tbk. (CitraLand Surabaya)
For Lease
2015
8,000 PT Graha Pena Jawa Pos (Jawa Pos Group)
For Lease
2016
2017
p. 3
surabaya | 1h 2013 | OFFICE
For several periods, 84% of the total office

space in Surabaya was marketed as offices for
lease. Strata-titled office space had not been
popular in the early years of the Surabaya office
era until the introduction of Graha Pangeran in
1996. In 2010, Graha Pangeran changed
ownership and since then it has been operated
as offices for lease. In the future, we will delete
Graha Pangeran from our commercial building
database since the owner intends to use the
whole space for themselves (owner-occupied
building).
The market for offices for lease is tough in
Surabaya because office buildings have to
compete with shop-houses or even landed
houses used for office purposes. Prior to 2012,
only two office buildings had strata-titled
offices; however, the strata-titled market was
not as brisk as expected. To cope with a slack
market, strata-titled offices were converted to
offices for lease. In 2012, The Spazio was
launched with strata-titled offices. Unlike the
previous buildings, The Spazio was well
absorbed.
Prior to 1990, the first two office buildings
operated in Surabaya with a total of around
10,000 sq m. During the next decade (1990 2000) there were 15 office buildings operating
in the city, mainly concentrated in Central

Surabaya, bringing a total of 183,974 sq m of
office space. From 2000 to 2010, less office
buildings were built compared to the previous
decade, bringing around 65,624 sq m of office
space into the market. From 2011 onward, only
two office buildings were built, i.e. Trillium and
The Spazio office buildings.
From 2011 to 2013, only two office buildings
with a total of only around 26,800 sq m were
operated. Even this year, there are no new
office buildings being completed. Since the
early period of office building history in
Surabaya, the size of buildings has been no
larger than 25,000 sq m, which is considered a
small to medium size building in Jakarta.
However, in the next one to three years, we
expect to see larger buildings of around 40,000
sq m.
After Graha Pangeran was introduced in 1996,
it was not until 2003 that the second stratatitled office building was introduced. In 2007,
another strata-titled office building was
operated, followed by a fourth in 2012. The
total strata-titled office space in Surabaya is
23,200 sq m, representing 16% of the total
office stock. In the Jakarta market, strata-titled
offices comprise 19% of the total office stock.
office building distribution by region in surabaya (BASED ON NUMBER OF PROPERTY)

East
Surabaya
8%
West
Surabaya
8%
South
Surabaya
19%
Central
Surabaya
65%
Regarding location, 65% of the office space is

in Central Surabaya, which includes Jalan
Embong Malang, Jalan Basuki Rahmat, Jalan
Jenderal Sudirman, Jalan Urip Sumoharjo and
part of Jalan Darmo. South Surabaya is the
second commercial area, particularly in Jalan
MayJend Sungkono and Jalan Jend. A. Yani
Colliers International |
p. 4
contributes 19% of the total office stock in

Surabaya. In West Surabaya, the office building
concentration is mainly along Jalan HR
Muhammad, while the Gubeng area is the main
office location in East Surabaya. The only area
with no office buildings is North Surabaya.
surabaya | 1H 2013 | OFFICE
future office building distribution by region in surabaya

(BASED ON NUMBER OF PROPERTY)
West
Surabaya
17%
Central
Surabaya
25%
East
Surabaya
25%
South
Surabaya
33%
The pattern of future office distribution is

completely different from currently, as
mentioned above. South Surabaya, particularly
in Jalan Mayjend Sungkono and Jalan Jend A.
Yani, will see more office space in the future,

followed by East Surabaya. Up to 2017, there
will be 12 new office buildings.
Occupancy
HISTORICAL OCCUPANCY RATES BASED ON REGION
100%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
2008
Central Surabaya
2009
2010
South Surabaya
2011
East Surabaya
2012
2013YTD
West Surabaya
average
occupancy rates based on area in 1h 2013

100%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
Central Surabaya
South Surabaya
West Surabaya
East Surabaya
p. 5
surabaya | 1h 2013 | OFFICE
The level of office space absorption is good in

Surabaya, recorded at 87.7% as of June 2013.
Compared to the ending occupancy rate in
2012, this figure is 3.6% higher, largely driven
by the good performance of office buildings
located in Central Surabaya. Some buildings in
Central Surabaya experience good performance.
After major refurbishments over the last two
years, buildings like Gedung Bumi Mandiri 2
captured significant numbers of tenants, while
Wisma BII had both tenant expansion and new
tenants coming in.
Office tenants in Surabaya are predominately
national-scale companies, with only a few local
companies, which normally opt for occupying
shop-houses or rukan. Most multinational
companies taking Surabaya office space are
branch offices from Jakarta or come from
eastern Indonesia, such as Makassar, Balikpapan
and Papua. Overall, the characteristics of

companies having offices in Surabaya are
somewhat different from Jakarta where office
spaces being occupied are relatively small.
Local companies and companies from outside
Surabaya are projected to dominate this small
occupiers market.
According to our records, around 20.000 sq m
of office space was occupied from 2010 to
2012. This is a negligible amount compared to
the annual office space absorption in Jakarta.
Fortunately, the amount of office space being
absorbed is somewhat balanced with the
availability. Such a balance will likely continue
and will maintain occupancy at a healthy level.
Based on business lines, insurance and financial
institutions became the main demand
generator.
Base Rental Rates and Service Charge

average asking BASE rental rates based on area
East Surabaya
West Surabaya
South Surabaya
Central Surabaya
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
IDR /sq m/month

The average base rental rate for offices in

Surabaya has been relatively stable for some
time, at IDR85,233/sq m/ month, only a minor
change from the end of 2012. Based on area,
Central Surabaya achieved the highest rental
rates ranging from IDR55,000 to IDR120,000/
sq m/month, followed by West Surabaya at
IDR75,000 to IDR100,000/sq m/month. With a
p. 6
relatively sluggish market, rent tends to be flat

as well.
The service charge cost is the main reason for
landlords to adjust the total occupancy tariff. As
of 1H 2013, the average service charge was an
average of IDR47,466/sq m/month.
surabaya | 1h 2013 | apartment
Apartment
Sector
Supply
Surabaya, as a metropolis and the secondlargest city in Indonesia after Jakarta, will see
continued growth in the property market, given
the citys rapid development. Like Jakarta, the
property cycle in Surabaya was affected during
the Asian financial crisis in 1997 and global
financial crisis in 2008, but since then, the
property market has sustained an upbeat trend.
The momentum of the booming apartment
market in Surabaya started in 2009 and
continues to grow. Surabaya has only 14,748
strata-title apartment units, which constitutes
only 12.0 per cent of Jakartas apartment

market. These strata-title apartments are
scattered across East, South, West and Central
Surabaya. Despite having a small relative
population and number of apartments, Surabaya
is an interesting market for selling strata-title
apartments. Because it is a growing economy
and the centre of trading, education and
industrial activities in Indonesia, Surabaya is an
attractive location for affluent people and
investors from other cities, and in particular
from eastern Indonesia.
cumulative supply of apartments for strata-title in surabaya

40,000
30,000
20,000
10,000
Existing Supply
2015P
2014P
2013P
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1997
1998
0
1996
U nits
Apartments
For Strata-title
Sale
Annual Supply
p. 7
Strata-title apartments emerged in Surabaya in

1996, with a combined total of 525 units
becoming operational at Regency Apartment,
Puncak Marina and Taman Beverly located at
Jalan Embong Malang, Jalan Margorejo Indah
and Jalan HR Mohammad respectively. Between
1996 and 2008, the supply of apartments
stagnated. In 2008 Metropolis Apartment came
on-line and from then until 2012, an average of
2,725 apartment units entered the market in
Surabaya annually. A further annual influx of
4,639 units is anticipated over the next three
years. Although most of the projects scheduled
to enter the market in 2013/2014 are currently
under construction, and the 2015 projects are
largely still in the planning phase, they have all
already been pre-sold.
West and East Surabaya are the two preferred
locations for apartment developments with
54.0 and 32 per cent of the total supply
respectively. Meanwhile, South and Central
Surabaya compete for the remaining significantly
smaller portion of apartment stock with 10 and
4.3 per cent respectively. The development of
apartments was initially focussed in West
Surabaya with East Surabaya not far behind.
Developers are flocking to West Surabaya to
build luxury apartments, which is attracting
expatriates and business people. Despite the
fact that its apartment market developed later

than in West Surabaya, East Surabaya offers a
captivate market from the eastern Indonesia,
particularly the growing number of middle to
upper class families. As well as professionals,
East Surabaya appeals to students from other
parts of Indonesia because of its role as an
education centre with universities like Airlangga
University, Sepuluh Nopember Institute of
Technology (ITS), and Petra University.
Based on our survey, we anticipate a further
growth in supply in Surabaya between now and
2015, with an additional 13,918 units anticipated.
The table below lists projects that are under
construction. East and West Surabaya continue
to dominate the market with the majority of
projects over the next two years. In West
Surabaya, there are an additional six projects
totalling seven towers, including three apartment
projects located within the Pakuwon Indah
complex, one apartment project in Ciputra
World Surabayas mixed-use compound, and
one tower extension from Puncak Permai
apartment, located in Raya Darmo. On the other
hand, East Surabaya will receive 11 new towers
from five projects, most of which are largescale developments targeting to mid-low range
pricing segment.
LIST OF APARTMENTS IN SURABAYA
apartment name
location
Developer
#unit
1996
Puncak Marina
Jl. Margorejo Indah
PT Tridjaya Kartika
214
Taman Beverly
Jl. HR Muhammad
PT Surabaya Land
200
Regency Apartment
Jl. Embong Malang
Pakuwon Group
111
Taman Sejahtera
Jl. Gayung Kebonsari
PT Taman Sejahtera
198
Kondominium Graha Family
Jl Graha Family
PT Intiland Development Tbk.
260
Jl. HR Muhammad
PT Prasidha Inti Jaya
139
Jl Raya Trenggilis
PT Aktifitas Putra Mandiri
1997
1998
Puri Matahari
2008
Metropolis
813
continued
p. 8
apartment name
location
Developer
#unit
continuation
2009
Waterplace
Jl. Pakuwon Indah
Pakuwon Group
1,600
747
Grande Waterplace
Jl. Pakuwon Indah
Pakuwon Group
Twin Tower (Tower B)
Jl. Kalisari
PT Mapan Sejahtera
96
The Cosmopolis Residence
Jl. Arief Rahman Hakim
PT Aktifitas Putra Mandiri
180
De Residence
Jl. Pakuwon Indah
Pakuwon Group
114
Jl. Kalisari
PT Mapan Sejahtera
2010
Twin Tower/Aston Place (Tower A)
96
East Coast Apartment
Pakuwon City
Pakuwon Group
792
Adhiwangsa Golfview Residence
PT Bukit Darmo Property Tbk.
170
Aryaduta Residences
Jl. A Yani
PT Lippo Karawaci Tbk.
238
UC Apartment (Berkeley Tower)
CitraLand Surabaya
Ciputra Group
504
High Point Apartment
Jl. Siwalankerto
PT Sambadha Wahana Development
352
The Square
Jl. Siwalankerto
PT Petra Town Square
440
Puncak Permai (Tower A)
Jl. Raya Darmo III
PT Surya Bumimegah Sejahtera (Puncak Group)
1,254
Puncak Permai (Tower B)
Jl. Raya Darmo III
1,254
2011
Trilium Residence
Jl. Pemuda
PT Pemuda Central Investindo
330
The Via and The Vue
Jl. Mayjen Sungkono 87
Ciputra Group
464
DR Apartment
Jl. Keputih
PT Diparanu Rucitra
640
Puncak Permai (Tower C)
Jl. Raya Darmo III
Gunawangsa (Tower A)
Jl. Raya Menur Pumpungan
PT Gunawangsa Investindo
640
Gunawangsa (Tower B)
Jl. Raya Menur Pumpungan
PT Gunawangsa Investindo
640
Puncak Kertajaya (Tower A)
Jl Raya Kertajaya Indah

Regency
2012
1,254
1,008
apartment distribution by region in surabaya

Central
Surabaya
4%
South
Surabaya
10%
West
Surabaya
54%
East
Surabaya
32%
p. 9
most active developers in surabaya by number of units
PT Petra Town Square

3%
Others
16%
Puncak Group
32%
PT Diparanu Nucitra
4%
Ciputra Group
6%
PT Aktifitas Putra
Mandiri
PT Gunawangsa
7%
Investindo
9%
Pakuwon Group
23%
There are several developers with existing

apartment developments under way in
Surabaya. Both Pakuwon Group and Puncak
Group each have a project in West and East
Surabaya. Pakuwon Group is developing
Waterplace Apartment at Pakuwon Indah
superblock in West Surabaya, and East Coast
Residence at Pakuwon City superblock in East
Surabaya. Puncak Group has a number of
massive projects including Puncak Permai
Apartment in West Surabaya and Puncak

Kertajaya Apartment in East Surabaya. PT.
Guna Wangsa Investindo and PT. Aktifitas Putra
Mandiri have projects in East Surabaya, namely
Gunawangsa Apartment and Metropolis and
Cosmopolis Residence respectively. Ciputra
has The Via and The Vue Apartment and UC
Apartment at JI. Mayjend Sungkono and
Citraland complex in West Surabaya
respectively.
NEW SUPPLY PIPELINE
apartment name
location
Developer
#unit
2H 2013
Puncak Kertajaya (Tower B)
Jl. Raya Kertajaya Indah Regency
Puncak Group
1,008
Puncak Permai (Tower D)
Jl. Raya Darmo III
Puncak Group
1,254
The Peak Residence
Jl. Basuki Rahmat
Pakuwon Group
190
Orchard Mansion
Pakuwon Indah
Pakuwon Group
940
De Papillio Tamansari
Jl. Ahmad Yani
Wika Realty
446
Tanglin Mansion
Pakuwon Indah
Pakuwon Group
940
Bale Hinggil Apartment
Jl. Ir. Soekarno
PT Tlatah Gema Anugrah
2,014
Puncak Dharmahusada
Jl. Ir. Soekarno
Puncak Group
1,250
Puncak Bukit Golf
Jl. Raya Bukit Darmo Boulevard I
Puncak Group
1,250
Voila Apartment
Jl. Mayjen Sungkono
Ciputra Group
216
Ritz Mansion
Pakuwon Indah
Pakuwon Group
450
Linden Tower
Jl. Ngagel 123
Consortium Kencana Group, PT Dian Istana and PT Avila Prima
360
Educity Apartment
Jl. Kejawan Putih Mutiara No. 17
Pakuwon Group
2014
2015
3,600
p. 10
most active developers in surabaya by number units of planned apartments

Puncak group
34%
PT Tlatah Gema
Anugrah
14%
Wika Realty
3%
Consortium Kencana
Group, PT Dian Istana
Ciputra
and PT Avila Indah
2%
3%
Pakuwon Group
44%
Demand
The trend of living in high-rise apartment
buildings in Surabaya commenced in 2007, and
in 2008, the market was flush with new
apartments marking the era of apartment-living
in the city of Surabaya. Over the last three years
the influx of new apartment units has always
been followed by good absorption rates. The
apartment market has remained optimistic in
line with the growing national economy and
healthy business environment in Surabaya. Up
to the end first half of 2013, the take-up rates of
existing apartments in Surabaya reached 96.3
per cent, leaving only 543 units unsold.
close to the central business district, which is

nearby. West Surabaya also provides facilities
like golf courses which attract both the western
and Japanese market, as well as embassies
and international schools. In the interim, the
profile of apartment buyers in East Surabaya is
people from eastern Indonesia, such as
Kalimantan, Makassar and Papua, whose buying
motive is generally to provide accommodation
for their children who study in Surabaya.
Furthermore, they are considering establishing
a second home-base for vacations or doing
business in Surabaya.
Significant demand was generated by new

couples, students and investors looking for
good returns and capital gain from the
secondary market. Location wise, buyers have
different perspectives when buying in East
Surabaya verses West Surabaya. Investors
favour apartments in the West as the leasing
market is strong, particularly with the option of
targeting expatriates who like to live and work
Apart from the two most preferred areas, South

and Central Surabaya registered similarly high
take-up rates of 97.0 and 91.7 per cent for
completed projects. With a lack of new
developments since The Square Apartment
(completed in 2011), South Surabaya registered
the highest take-up rate, while Central Surabaya
still has about 9.0 per cent of its units available
at Trillium Residence.
average take-up rates for completed apartments in ih 2013

rEGION
Take-up
Central Surabaya
91.7%
South Surabaya
97.0%
East Surabaya
96.2%
West Surabaya
96.6%
p. 11
For apartments under construction, the overall

pre-sale rate registered at 57.6 per cent. West
Surabaya recorded the highest pre-sale rate
with 62.5 per cent. Some on-going projects
located in West Surabaya have performed well,
i.e. between 50.0 and 90.0 per cent. Ciputra
World Surabaya is pursuing the construction of
The Voila Apartment, while the Pakuwon Indah
Superblock projects will develop The Ritz
Mansion, The Orchid Mansion and Tanglin
Mansion. Overall, apartments under construction
in East Surabaya registered a pre-sale rate of

56.6 per cent. Some large-scale projects that
are still under construction include Gunawangsa
MERR (2 towers), Educity Apartment (4
towers), and Puncak Kertajaya (Tower B). Most
of these developments have recorded a presale rate of at least 50.0 per cent. South and
North Surabaya are the two areas with no new
apartment projects forecast for the next 2-3
years.
average take-up rates of Apartment under construction

rEGION
Take-up
Central Surabaya
45.9%
East Surabaya
56.6%
West Surabaya
62.5%
Asking Price
During the first half of 2013, the asking price for
strata-title apartments in Surabaya ranged
between IDR6.7 million and IDR35 million per
sq m, while the average asking price across all
apartment classes in Surabaya is IDR13.6
million per sq m. It should be noted that these
figures are based on available units in the
market.
By area, Central Surabaya, which is the
downtown area of Surabaya, captured the
highest price. The average apartment price in
Central Surabaya was recorded at IDR25 million
per square metre, while the highest apartment
price was IDR35 million per sq m. High land
prices, which were triggered by the scarcity of
land stock in the downtown area, bolstered the
increase in apartment prices. As of June 2013,
the only available and ready-to-occupy units
were at Trillium Residences. The remaining ongoing projects like The Peak Residence and
One Icon Residences, developed by Pakuwon
Group, and Praxis, by Intiland, are still under
construction.
East and West Surabaya are experiencing a

range of developments from apartments in the
mid-low range pricing segment to luxury
apartment. A significant number of apartments
in the mid-range to luxury segments being
developed by reputable large developers, while
projects in the mid-low range pricing segment
are generally developed by smaller developers.
In East Surabaya, the price per square metre
ranges between IDR6.7 million to IDR22 million
per sq m. On average, apartment prices in East
Surabaya are registered at IDR13.2 million per
sq m. Similarly, West Surabaya registered a
range of between IDR7.4 million and IDR25.4
million per sq m, with the overall average price
recorded at IDR13.2 million per sq m.
In South Surabaya, price disparity among
developments is virtually non-existent because
apartment projects are aiming at similar
segments. There are only six apartment projects
in South Surabaya, with De Papillio Tamansari
still under construction during the reviewed
period. Asking prices range from IDR11.0 million
to IDR16.6 million per sq m.
p. 12
apartment price-range by location in surabaya

IDR 40,000,000
IDR 35,000,000
P r ice/sq m
IDR 30,000,000
IDR 25,000,000
IDR 20,000,000
IDR 15,000,000
IDR 10,000,000
IDR 5,000,000
IDR 0
Central Surabaya
South Surabaya
East Surabaya
West Surabaya
p. 13
Apartment For
Lease
(Serviced and
Non-serviced)
Supply
Until the end of June 2013, the supply of
apartment units for lease in Surabaya, including
serviced apartments and non-serviced
apartments, was limited comprising only 3.8
per cent of the total apartment units available.
There are eight apartment projects for lease in
Surabaya with the majority being service
apartments. The serviced apartments in
Surabaya were largely attached to hotel
developments, such as Novotel Suites, Sheraton
Residence, Paragon Apartment, Somerset
Residence, and JW Marriott Guesthouses.
There is only one project in South Surabaya,
Puncak Marina located in Jl. Margorejo Indah.
This apartment has 30 non-serviced apartment
units. Overall, the total supply of apartment for
lease up to the first half of 2013 in Surabaya
was 591 units.
Based on area, there are four service apartment
projects in West Surabaya including Graha
Residen, Java Paragon Apartment, Somerset
Residence and Puri Darmo. Graha Residen is
the oldest development, established in 1989,
and the only low-rise apartment in Surabaya.
Paragon Apartment is part of the Java Paragon

Hotel and Residences project, and is
conveniently located near the international
school and golf courses at Jl. Mayjen Sungkono.
Somerset Surabaya Serviced Residence is
located near toll road which have an easy
access to industrial districts of Margomulyo,
Gresik, and Pasuruan, while Puri Darmo
Serviced Residence is located in Jl. Raya
Kupang Baru and its bright colours dominate
the roof-line in the area.
South and Central Surabaya have, respectively,
one and two apartments for lease. Puri Marina
Apartment in South Surabaya is operating as
non-service apartments. Meanwhile, two
service apartments in Central Surabaya are
both located at Jl. Embong Malang, comprising
Sheraton Residence and JW Marriott
Guesthouses.
Only one serviced apartment project is located
in East Surabaya. Novotel Suites is located in
Jl. Ngagel, catering for both business guests
and leisure travellers.
LIST OF completed APARTMENTs for lease
apartment name
Graha Residen
location
Jl. Darmo Harapan
region
West Surabaya
#units
151
Java Paragon Residences
Jl. Mayjen Sungkono
West Surabaya
64
Puri Darmo Service Residences
Jl. Raya Kupang Baru
West Surabaya
92
Somerset Service Residence
Jl. Raya Kupang Indah
South Surabaya
104
Puncak Marina
Jl. Margorejo Indah
South Surabaya
30
Sheraton Residence
Jl. Embong Malang
Central Surabaya
53
JW Marriott Guesthouses
Jl. Embong Malang
Central Surabaya
27
Novotel Suites
Jl. Ngagel
East Surabaya
70
Demand
Because the majority of apartments for lease
are serviced apartments, they are given more
emphasis. Demand for serviced apartments
was largely driven by long-term corporate
tenants, particularly expatriates who work in
Central Surabaya and beyond Surabaya itself.
Corporate tenants from the banking and other
service industries are mainly located in Central
Surabaya, while corporate tenants in
manufacturing industries opt for apartments
close to the toll road because their work places
are located in cities outside Surabaya, like

Gresik and Sidoarjo. Korean, Japanese and
Chinese tenants are the predominant expatriates
in the area, followed by Americans and
Australians. Overall, the occupancy rate of
serviced apartments in Surabaya registered at
71.0 per cent. Apart from this, short term
occupiers also help to maintain the current level
of occupancy, particularly during the period
reviewed.
p. 14
By area, the occupancy rate of service

apartments in East Surabaya is recorded at
80.0 per cent, followed by Central Surabaya
with 75.0 per cent, during the first half of 2013.
Meanwhile, West Surabaya posted a 67.0 per
cent occupancy rate. Going forward, the
occupancy rates of serviced apartments will
potentially experience increasing competition

from the newly-built strata-title apartments.
The majority of serviced apartment constitute
older developments, which could potentially
lead to open leasing in the newly-built stratatitle market, since expatriates prefer newer
units.
Rental Rates
Leased apartments in Surabaya generally uses
rupiah denominations for leasing transactions.
Based on our survey, the average rental rate
ranges from IDR85,469 to IDR248,929/sq m/
month (or US$8.75 to US$25.48/sq m/month).
For luxury serviced apartments managed by
five star international hotel brands, rental rates
were recorded at between IDR138,350 and
IDR272,222/sq m/month (or US$14.16 and

US$27.87/sq m/month. Meanwhile, the rental
rate for serviced apartments which are locally
operated, including Puri Darmo Service
Apartment and Graha Residen, ranges between
IDR89,362 and IDR135,556/sq m/month (or
US$9.15 to US$13.88/sq m/month.
average rental rates for serviced apartments in surabaya

IDR 300,000
IDR /sq m
IDR 250,000
IDR 200,000
IDR 150,000
IDR 100,000
IDR 50,000
IDR 0
Based on type, the monthly rental rate for onebedroom and two-bedroom serviced apartments
in Surabaya registered at IDR17.38 million to
IDR18.38 million (or US$1,780 to US$1,882) per
p. 15
unit. A three-bedroom serviced apartment is

considerably higher at an average of IDR23.56
million (US$2,412) per unit.
surabaya | 1h 2013 | retail
Retail Sector
Supply
existing
Retail space in Surabaya grew at a fast pace in
early 2000. The number of retail spaces grew
significantly from 2002 to 2011 when an
additional 667,387 sq m of retail space entered
the Surabaya market. The highest influx
occurred in 2006 and 2008. In 2006, the retail
market in Surabaya saw 141,600 sq m of new
retail space while in 2008, the market witnessed
the greater amount of 191,846 sq m (the highest

annual supply in Surabaya retail history). Since
then, retail space in Surabaya only grew by
50,000 sq m until 2011. During 2012 and up to
the middle of 2013, there was no new retail
space in Surabaya and this will likely continue
up to 2014.
retail cumulative supply

1,400,000
1,200,000
sq m
1,000,000
800,000
600,000
400,000
200,000
2016F
2015F
2014F
2013F
2012
2011
2010
2009
Annual Supply
2013YTD
Existing Supply
2008
2007
2006
2005
2004
2003
2002
2001
2000
p. 16
Besides Tunjungan Plaza, Grand City and ITC

Mega Grosir Surabaya are also located in
Central Surabaya, making the total retail supply
in Central Surabaya higher than in other areas.
South Surabaya is the second highest area with
retail space. In 2011, the mall at Ciputra World
was the latest retail center to open in South
Surabaya.
Retail projects are mainly located in downtown

Surabaya and this is reflected in the chart
below. Central Surabaya leads with 33 % of
the total 957,088 sq m of total cumulative
supply up to 1H 2013. Of the overall supply in
Central Surabaya, Tunjungan Plaza is the main
contributor of retail space. Since opening in
1986, Tunjungan Plaza has been expanding.
distribution of retail space based on area

West
Surabaya
13%
East
Surabaya
13%
Central
Surabaya
33%
North
Surabaya
14%
South
Surabaya
27%
retail space which is contributed by 14 retail

centers. The highest annual supply historically
was recorded in 2008 when there was 90,000
sq m of new strata-titled retail space in
operation. One of the biggest strata-titled
centers was CITO (City of Tomorrow),
contributing more than 70,000 sq m; it is the
biggest strata-titled center in Surabaya.
The supply of retail space in Surabaya is still

dominated by retail for lease (about 588,521 sq
m or 61% of the total supply). This is contributed
by 22 retail centers that have been operating in
Surabaya since 1986.
On the strata-title front, since the opening of
Pasar Atom from 1976 to 1H 2013, there are
only a total of 368,567 sq m of strata-titled
retail cumulative supply based on marketing scheme

1,400,000
1,200,000
sq m
1,000,000
800,000
600,000
400,000
200,000
p. 17
2016F
2015F
2014F
2013F
2012
2011
2010
2009
For Strata-Title
2013YTD
For Lease
2008
2007
2006
2005
2004
2003
2002
2001
2000
LIST OF operating shopping centres in surabaya
shopping centres name

Pasar Atum
location
Jl. Bunguran
Region
North
marketing
developer name
scheme
PT Senopati Perkasa
Strata-title
Tunjungan Plaza I
Jl. Basuki Rahmat
Central
PT Pakuwon Jati
For Lease
Surabaya Plaza
Jl. Pemuda
Central
PT Bayu Waringin Lestari
For Lease
Tunjungan Center
Jl. Tunjungan
Central
PT Lamicitra Nusantara Tbk
For Lease
Surabaya Mal (Hi Tech Mall)
Jl. Kusuma Bangsa
North
PT Sasana Boga
For Lease
Tunjungan Plaza II
Jl. Basuki Rahmat
Central
PT Pakuwon Jati
For Lease
Jembatan Merah Plaza 1
Jl. Kasuari
North
Strata-title
Galaxy Mal
Jl. Dharmahusada Indah Timur
East
PT Alam Galaxy (Sinar Galaxy Group)
For Lease
Tunjungan Plaza III
Jl. Basuki Rahmat
Central
PT Pakuwon Jati
For Lease
Tunjungan Plaza IV
Jl. Basukit Rahmat
Central
PT Pakuwon Jati
For Lease
Plaza Marina
Jl. Margorejo Indah Raya
South
PT Tridjaja Kartika
For Lease
Pakuwon Supermal Indah
Jl. Bukit Darmo
West
PT Pakuwon Jati
For Lease
Pakuwon Trade Center
Jl. Bukit Darmo
West
PT Pakuwon Jati
Strata-title
Maspion Square
Jl. A. Yani
South
PT Maspion Tbk
For Lease
Golden City Mall
Jl. Abdul Wahab Siamin
South
PT Pakis Mega Indah
For Lease
Darmo Trade Centre
Jl. RA Kartini
South
PT Arwinto Intan Wijaya
Strata-title
Galaxy Mal II (extention)
East
PT Alam Galaxy (Sinar Galaxy Group)
For Lease
BG (Bubutan Golden Junction)
Jl. Bubutan
Central
PT Sentral Supel Perkasa
Strata-title
ITC Mega Grosir Surabaya
Jl. Gembong
Central
PT Citraagung Tirta Jati
Strata-title
Royal Plaza
Jl. A. Yani
South
PT Dwijaya Manunggal
For Lease
Pusat Grosir Wonokromo
Jl. Raya Wonokromo
South
PT Duta Pertiwi
Strata-title
Pasar Atum Mall
Jl. Bunguran
North
PT Senopati Perkasa
For Lease
Jembatan Merah Plaza 2
Jl. Kasuari
North
Strata-title
Pusat Grosir Surabaya
Jl. Dupak
Central
Strata-title
Tunjungan Electronic Centre
Jl. Tunjungan
Central
Strata-title
Kapas Krampung Plaza
Jl. Kapas Krampung
East
PT Gitanusa Sarana Niaga
Strata-title
Surabaya Town Square (Sutos)
Jl. Pepaya
West
PT Graha Megaria Raya
For Lease
Kapas Krampung Trade Center
Jl. Kapas Krampung
East
PT Gitanusa Sarana Niaga
Strata-title
City of Tomorrow
Jl. A. Yani
South
PT Surya Mitra Jaya (Lippo)
Strata-title
Central Point Shopping Mall
Jl. Ratna, Ngagel
South
PT Waringin Group
For Lease
Buthan Trade Mall
Jl. Bubutan (ex Mardi Santoso
Central
PT Bubutan Indah Megah
Strata-title
LenMarc Shopping Paradise
West
PT Adhibaladika Agung
For Lease
Grand City Mall
Jl. Gubeng Pojok
Central
PT Hardaya Widya Graha
For Lease
East Cost Center
Jl. Kejawan Putih Mutiara,
East
PT Pakuwon Jati
For Lease
South
PT Ciputra Surya Tbk
For Lease
Hospital)
Pakuwon City
Ciputra World Mall
Jl. Mayjen Sungkono
p. 18
future
Looking at the composition of retail distribution
in the future, Central Surabaya remains the
prime retail location. South Surabaya will also
continue to be a preferred retail location. It is
interesting to note that East Surabaya will have
the largest retail space from the planned Galaxy
Mall extension.
Ciputra World Surabaya was the latest mall and

opened in 2011; since then and until 2014, there
will be no new retail space. Only in 2015 and
2016 will a new supply of retail space appear,
including both new retail centers and the
expansion of existing projects. Over the next
three years, Surabaya will see additional new
retail space of 261,750 sq m.
distribution of future retail space based on region

West
Surabaya
11%
Central
Surabaya
22%
East
Surabaya
29%
South
Surabaya
23%
North
Surabaya
15%
new pipeline of shopping centres in surabaya
shopping centres name
location
Region
NLA
marketing
development
(sq m)
scheme
status
2015
Mall @Praxis Superblock
Jl. Embong Sonokembang
Central
22,750 For Lease
In Planning
Marvell City
Jl. Raya Ngagel
East
15,000 For Lease
In Planning
Mall @A. Yani
Jl. A. Yani
South
30,000 For Lease
In Planning
Ciputra World 2
Jl. Mayjen Sungkono
Central
34,000 For Lease
In Planning
Pasar Atum Mall 2
Jl. Bunguran
North
40,000 For Lease
In Planning
Maspion Square 2
Jl. A. Yani
South
30,000 For Lease
In Planning
One Galaxy Mall
East
60,000 For Lease
In Planning
Puncak CBD Jajar
Jl. Jajar Tunggal
West
30,000 For Lease
In Planning
2016
p. 19
Shopping Center Performance

The overall occupancy rate for all retail centers
in Surabaya was 81% in 1H 2013. This level is
1.7% higher than the figure last year. Shopping
centers for lease (malls) experienced a good
occupancy level of 83% while the occupancy
for strata-titled shopping centers was 74%. All
regions in Surabaya enjoyed the average
performance of around 80% in 1H 2013 with
some prominent shopping centers enjoying full
occupancy. Only some shopping centers located
in West Surabaya had occupancy levels below
70% due to the low performance of one retail
center (some pre-committed tenants have not
opened stores yet) that operated since 2011,
located on Bukit Darmo Boulevard.
In general, as the second biggest city in
Indonesia, Surabaya is a rosy market for retail
business given the population and being the
center of economy for the eastern part of the
country. Certain malls have shown impressive

performance due to the location, appropriate
concept and always being updated on retail
trends. In fact, there are some operating malls
with lackluster performance. They may have
committed tenants who are not open, or in
some cases, many tenants open but there is
low shopper traffic.
Not only in Jakarta, Mitra Adi Perkasa (MAP) Indonesia-based retail companies engaged in
the trading of clothing, shoes, accessories, bags
and sports equipment have been quite dominant
in Surabaya. One of the brands, Zara, will
occupy around 2,500 sq m in Galaxy Mall. One
upcoming extended mall in the west has
secured Debenhams as their anchor. Other
retail companies like Kawan Lama are also
actively expanding into the Surabaya retail
market as well as ACE Hardware and Informa.
occupancy rates based on region

100%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
Central Surabaya
South Surabaya
North Surabaya
East Surabaya
West Surabaya
number of operating department stores in surabaya
Grand Palace
Department Store
Cahaya
Ramayana
Metro
Centro
SOGO
Matahari
0
p. 20
number of operating hypermarket in surabaya
Hy permarket
Lotte Mart
Giant
Carrefour
Hypermart
Asking Rental Rates and Service Charge

Overall, the average asking rental rates for retail
centers in Surabaya was IDR375,076/sq m/
month in 1H 2013. Four prime shopping centers
have contributed to an overall increase of 10.2%
in the asking rental rates compared to 2012.
During the first six months of 2013, these
shopping centers adjusted the pegged rate (a
fixed exchange rate of IDR against US$) as well
as introducing new asking rental rates as a
result of the good mall performance.
As a business district, retail centers in Central
Surabaya captured the highest rental rates at
an average of IDR506,749/sq m/month. The

high rents in Central are at two retail centers,
namely Tunjungan Plaza and Grand City.
Meanwhile, the lowest asking rental rate of
IDR269,983/sq m/month are found in East
Surabaya at two new relatively new shopping
centers located further east of the city.
However, the latest figures do not reflect the
overall market in the east because one
prominent and established shopping center,
Galaxy Mall, achieved a high rent by targeting
the medium to upscale segment.
asking rental rates based on region

IDR 600,000
IDR 500,000
IDR 400,000
IDR 300,000
IDR 200,000
IDR 100,000
IDR 0
Central Surabaya North Surabaya
East Surabaya
West Surabaya
South Surabaya
p. 21
historical asking rental rates and service charge

80,000
IDR 600,000
70,000
60,000
IDR 400,000
50,000
IDR 300,000
40,000
30,000
IDR 200,000
20,000
IDR 100,000
S ervice Charge
A s king Rental R ates
IDR 500,000
10,000
IDR 0
0
2008
2009
2010
Rental Rates
2011
2012
2013YTD
Service Charges
The service charges of shopping centers in

Surabaya have been relatively flat. Currently,
the average service charge is IDR66,556/sq m/
month. Despite increasing basic electricity
tariffs in early 2013, there has been no

significant impact on the overall operational
costs and only brought a minor increase of
1.8% over those at the end of 2012.
p. 22
surabaya | 1h 2013 | hotel
Hotel Sector
The characteristics of business hotels in

Surabaya are similar to those in Jakarta. The
hotel market is very much underpinned by local
guests, particularly those who come as

corporate guests from either private
corporations or the government.
Supply
As of 1H 2013 there are 39 star-rated hotels
providing a total of 6,619 rooms. The 3-star
hotel category dominates in terms of the

number of hotels and number of rooms.
composition of star-rated hotels

by number of hotels
by number of rooms
5-star
16%
4-star
29%
5-star
28%
3-star
55%
3-star
38%
4-star
34%
For the first six months in 2013, two hotels had

soft openings. PT Sahid International Hotel
Management and PT Karya Gunawangsa
operate the new 3-star Hotel Sahid Gunawangsa,
p. 23
which has 170 rooms and is located at Jalan

Menur Pumpungan 62, Manyar. Another hotel
operates during that period was the 4-star
Grand Darmo Suite, providing 200 rooms.
hotel growth in surabaya based on number of rooms

5,000
r ooms
4,000
3,000
2,000
1,000
3-star
4-star
2015P
2014P
2013P
2013YTD
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
5-star
Until 2007, the growth in the number of hotel

rooms in Surabaya had been sluggish and only
in 2008 did the market begin to see the number
of additional rooms grow modestly until 2011.
From 2012 to 2015, the number of hotel rooms

will increase substantially. From 2013 to 2015,
there will be 20 star-rated hotels providing
4,251 rooms.
new hotel supply pipeline
hotel name
location
grade
No. of
status
rooms
2013
Alana
Ketintang
3-star
162 Under Construction
Quest
Ronggolawe
3-star
Swiss-Belinn Manyar
Manyar
3-star
Santika Premier
Gubeng
4-star
Swiss-Belhotel
Darmo
4-star
Wahana
Basuki Rahmat
4-star
2014
Harris
Mayjen Sungkono
3-star
Ibis
Basuki Rahmat
3-star
Citadines
Ngagel
3-star
Toma
Jaksa Agung Suprapto
3-star
Casarita
Margorejo
4-star
Swiss-Belhotel
Mayjen Sungkono
4-star
Rich Palace
HR Muhammad
4-star
Aryaduta
Jend. A Yani
5-star
Double Tree
Basuki Rahmat
5-star
2015
Grandhika
Ngagel
3-star
150 In Planning
Solaris
Bagong Ginayan
3-star
180 In Planning
Swiss-Belinn
Tunjungan
3-star
187 In Planning
Grand Clarion
Raya Juanda
4-star
555 In Planning
p. 24
The number of hotels in Surabaya over the next

three years will be high and quite a few hoteliers
feel that the number of new hotels should be
controlled. Apart from the above list of new
hotels, there are some new hotel operators in
the stage of applying for a development permit.
Most likely, in one or two years, the number of
hotel permits in Surabaya will be limited to
maintain healthy competition among hotels and
to help promote the development of the cities
surrounding Surabaya in order to lessen the
urbanisation of Surabaya.
Hotel development continues to be an attractive
property investment in Surabaya for several
reasons. The invention of new energy sources
in several places in East Java has drawn
investors and created demand for hotels. In
addition, Surabaya is relatively safe with less
upheaval from students or other demonstration
activities.
composition of star-rated hotels based on region

existing
future
South
Surabaya
29%
North
Surabaya
5%
South
Surabaya
20%
Central
Surabaya
45%
East
Surabaya
18%
West
Surabaya
3%
East
Surabaya
30%
Central
Surabaya
45%
West
Surabaya
5%
Demand
Since 2007, the number of foreign visitors to
Surabaya through Juanda Airport has increased
by 7% annually. This year, the government of
Surabaya City set a target of a 10% increase or

218,000 people who will come to Surabaya
through Juanda Airport.
number of foreign visitors through juanda airport

250,000
200,000
150,000
100,000
50,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 target
2013
Tourism and Creative Economy Department
p. 25
Domestic visitors, which are the main driver for

hotel occupancy in Surabaya, increased in
number every year. The period from 2007 to
2008 was a slow period for incoming domestic
tourists; however, with the beginning of
operations of Juanda Airport as an international
airport in 2009, the number of domestic visitors

to Surabaya jumped, by 140%. This continued
until 2012 with an annual growth rate of around
8%. This year, the head of the Surabaya Tourism
Agency set a target of 10 million domestic
visitors coming to the city.
number of domestic visitors coming to surabaya

12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2007
2008
2009
2010
2011
2012
target 2013
Statistics Indonesia
The domination of domestic guests is also

reflected in the guest profile. From 2007 to
2012, the ratio of domestic versus foreign
guests was 85 : 15.
In terms of regions, Central Surabaya is
preferred the location compared to West
Surabaya because of its proximity to commercial
and entertainment spots. Even private

corporations would consider hotel locations
within the catchment of shopping facilities.
Meanwhile, South Surabaya is also a potential
location for hotels because of its proximity to
the airport.
the ratio between foreign and domestic visitors coming to surabaya

100%
80%
60%
40%
20%
0%
2007
2008
2009
2010
2011
2012
2013 YTD
Statistics Indonesia
p. 26
Performance
average occupancy rates (aor)
The occupancy level of all starred hotels in
Surabaya reached 66% in 2012, which is a
decline of 4% compared to the figure for 2011.
The drop in occupancy level was mainly due to
the influx of new hotels during the period.
During the first half of 2013, a number of MICE
events were held in Surabaya, among them

Second Senior Officials Meeting (SOM 2) for
APEC members, meetings facilitated by private
corporations and the government with offices
in Surabaya or other cities outside of Surabaya.
This helps maintain the occupancy levels for 3-,
4- and 5-star hotels at 61 to 69%.
occupancy rate of star rated hotels in surabaya

100%
80%
60%
40%
20%
0%
2007
2008
3 star
2009
4 star
2010
2011
5 star
2012
2013 YTD
average
Indonesia Hotel and Restaurant Association - Surabaya
From 2007 to 2012, the average length of stay

of foreign guests was 2.48 days, while that of
domestic guests was 1.66 days.
length of stay of foreign and domestic guests in surabaya

3.5
3.0
da ys
2.5
2.0
1.5
1.0
0.5
0.0
2007
2008
2009
foreign
2010
2011
2012
2013 YTD
domestic
Statitstics Indonesia
average DAILY rates (aDr)

The room rates of hotel in Surabaya were
mainly driven by MICE activities. Overall, from
2010 to 2012, the Average Room Rate grew by
5.7% annually. The highest growth in the ARR
was experienced by 4-star hotels (7.3%
p. 27
annually) while the 3- and 5-star hotels

recorded lower growth of 2.8 and 6.4%,
respectively. The ARR for 3-star hotels was
IDR342,409; for 4-star hotels, IDR395,602; and
for 5-star hotels, IDR649,556.
average daily rates of star rated hotels in surabaya
482 offices in
62 countries on
6 continents
IDR 800,000
IDR 700,000
IDR 600,000
IDR 500,000
United States
Canada
Latin America
Asia Pacific
EMEA
IDR 400,000
IDR 300,000
IDR 200,000
IDR 100,000
$2.0
IDR 0
2007
2008
3 star
2009
2010
4 star
2011
5 star
2012
2013 YTD
average
1.1
: 140
: 40
: 20
: 195
: 85
billion in annual revenue
billion square feet under management
Over
13,500 professionals
COLLIERS INTERNATIONAL INDONESIA:
REVENUE PER AVAILABLE ROOM (revpar)

With the increasing average room rate, the
revenue per available room also increased by
3.8% annually. RevPAR for 3-, 4- and 5-star
hotels was IDR220,278; IDR273,370 and
IDR399,744.
As hotels in Surabaya characterised as business
hotels, corporations and government account
for 80% of the occupancy of business hotels in

Surabaya. The good things of hotel in Surabaya
are interesting hotel rates. According to a
hotelier in Surabaya, the room rates there are
relatively low compared to Bali and even
Yogyakarta, and hotels in Surabaya are generally
good and have favourable MICE facilities.
World Trade Centre 10th & 14th floors

Jalan Jenderal Sudirman Kav. 29 - 31
Jakarta 12920
Indonesia
tel 62 21 521 1400
FAX 62 21 521 1411
Michael Broomell
Managing Director
Jakarta 12920
Indonesia
tel 62 21 521 1400 ext 131
FAX 62 21 521 1411
revenue per available room of star rated hotels in surabaya

IDR 450,000
IDR 400,000
Ferry Salanto
Associate Director, Research
IDR 350,000
IDR 300,000
IDR 150,000

Jakarta 12920
Indonesia
IDR 100,000
tel 62 21 521 1400 ext 134
IDR 250,000
IDR 200,000
FAX 62 21 521 1411
IDR 50,000
Email: Ferry.Salanto@colliers.com
IDR 0
2007
2008
3 star
2009
4 star
2010
2011
5 star
2012
average
2013 YTD
Copyright 2012 Colliers International

The information contained herein has been obtained
from sources deemed reliable. While every reasonable
effort has bee 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.
Accelerating success.
www.colliers.co,

SBY-Colliers Market Report 1H 2013

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1h 2013 i the knowledge

research & forecast report

SURABAYA REAL ESTATE

Property Sector Overview

SURABAYA | 1h 2013 | OFFICE

Colliers International Indonesia - Research

Colliers International Indonesia - Research

The growth of the office supply in Surabaya

implemented. This situation will likely continue,

The office market in Surabaya is not comparable

Notwithstanding the limited new office supply,

CUMULATIVE SUPPLY of office space based on marketing scheme

Colliers International Indonesia - Research

new office supply pipeline (2014 - 2017)

office building name

12,000 Consortium Kencana Group, PT Dian Istana and

Puncak Bukit Golf Square

Jl. Bukit Darmo Boulevard

30,000 PT Surya Bumimegah Sejahtera (Puncak Group)

Skyline Office Tower

Jl. Mayjen Sungkono

38,821 PT Menara Bumi Sejahtera

25,000 PT Samator Land

Puncak CBD Jajar Tunggal

Jl. Jajar Tunggal

30,000 PT Surya Bumimegah Sejahtera (Puncak Group)

40,000 PT Puri Galaxy (Sinar Galaxy Group)

Office @Jl. A Yani

30,000 PT Trikarya Graaha Utama

Jl. Basuki Rahmat

20,260 Pakuwon Group

For Lease &

Jl. Basuki Rahmat

39,740 Pakuwon Group

For Lease &

Intiland Tower Extention

Jl. Panglima Sudirman

20,000 PT Intiland Development Tbk

CitraRaya City Center

25,000 PT Ciputra Surya Tbk. (CitraLand Surabaya)

Colliers International Indonesia - Research

surabaya | 1h 2013 | OFFICE

For several periods, 84% of the total office

in the city, mainly concentrated in Central

office building distribution by region in surabaya (BASED ON NUMBER OF PROPERTY)

Colliers International Indonesia - Research

Regarding location, 65% of the office space is

contributes 19% of the total office stock in

surabaya | 1H 2013 | OFFICE

future office building distribution by region in surabaya

The pattern of future office distribution is

Yani, will see more office space in the future,

Colliers International Indonesia - Research

occupancy rates based on area in 1h 2013

Colliers International Indonesia - Research

surabaya | 1h 2013 | OFFICE

The level of office space absorption is good in

and Papua. Overall, the characteristics of

Base Rental Rates and Service Charge

IDR /sq m/month

The average base rental rate for offices in

relatively sluggish market, rent tends to be flat

surabaya | 1h 2013 | apartment

Colliers International Indonesia - Research