M A R K E T B E AT

JAKARTA
Rental Apartment Q1 2021

YoY 12-Mo. SUPPLY: No New Serviced Apartment Supply

Chg Forecast
No new Purpose-Built Rental Apartment and Serviced Apartment projects were identified during Q1 2021. Several under construction Serviced Apartment projects
have been delayed due to the continuing COVID-19 pandemic. About 5 identified Serviced Apartment projects (Somerset Kencana, Somerset Sudirman, Citadines
-6.6% Gatot Subroto, Citadines Sudirman, and Ascott Menteng) with total supply of 832 units are expected to enter the market by end of 2021.
Average Rental Growth

DEMAND: Short-Stay Demand Remained Stable

47.8% Despite remains relatively limited due mainly to the continuing inbound travel restrictions to Indonesia, s ome new dem and in the Purpose-Built Rental Apartment
Vacancy Rate sub-sector were identified during the review quarter. Some contract-based expatriates, who initially planned to stay only for few months, extended their contracts
into longer term as their c ompanies started to continue operation in Indonesia. Renewal of the expired lease contracts were also identified during the quarter with
157,984 units occupancy was recorded at 59.8%, a 0.4% increment compared to the last quarter’s figure.
YTD Total Completions
In Servic ed Apartment sub-sector, demand inquiries remained stable during Q1 2021. Occupancy rate was recorded at 47.5%, a slight 0.1% increase compared to
Source: Cushman & Wakefield Indonesia Research that in the last quarter. If the gradual openings of the economy and businesses in Jakarta continue, demand from short-stay guests (mostly locals) for weekend
“staycations” is expected to lead to better occupancy of this sub-sector in the coming quarters.

INDONESIA ECONOMIC INDICATORS On the other s ide, the Condom inium-for-lease sub-sector experienced occupancy decline of 1.9% QoQ, to 52.2%, due to the addition units from the newly
Q1 2021 completed condominium projects during the review quarter. This figure reflected a 4.6% occupancy decrease compared to in the same period of 2020.

YoY 12-Mo. PRICING: Rents Remained Under Pressure

Chg Forecast
Despite the fluctuation of the Rupiah against US Dollar during the review quarter, average rental rate of Purpose-built Rental Apartments remained relatively
-1.0% unchanged at Rp. 241,550 per sqm per month.
GDP Growth
Rental rate discounts, were offered by Serviced Apartment projects to attract new demand (especially from the short-stay guests). Average rental rate of Serviced
Apartment sub-sector was recorded at Rp 356,576, a 3.7% decrease from the last quarter’s figure.

1.4% The decline in Condominium-for-lease occupancy however, caused the average rental rate of the overall rental apartment market to drop by 1.9% QoQ to Rp.
Inflation Rate 148,025 per sqm per month, as individual unit owners were prepared to accept much lower rates in the fac e of the ongoing pandemic. Overall, the average rental
rate for rental apartment sector is projected to remain relatively stable in 2021.

3.5%
Central Bank Rate CUMULATIVE SUPPLY / OCCUPANCY NET ABSORPTION / RENTAL
2,00,000 100.00% 8000 Rp4,00,000

Rp Rental Rate
80.00% 6000 Rp3,00,000
Source: Central Bank and Census Bureau 1,50,000
4000 Rp2,00,000

Units
60.00% Occupancy
1,00,000 2000 Rp1,00,000
40.00%
Units

0 Rp0
50,000 20.00%
-2000 -Rp1,00,000
0 0.00% 2017 2018 2019 2020 Q121
2016 2017 2018 2019 2020 2021p
Total Absorpsion (units)
PB Rental Apt & Serv. Apt Supply Condo-for-Lease Supply Rental Rate PB Rent + Serv. Apt (Rp psm pm)
PB Rental Apt & Serv. Apt Occ Condo-for-Lease Occ Rental Rate Condo-for-Lease (Rp psm pm)
M A R K E T B E AT

JAKARTA
Rental Apartment Q1 2021

OVERALL VACANCY RATE MARKET STATISTICS

80.0% AVERAGE RENT
CUMULATIVE
VACANCY
SU B M AR K ET SUPPLY
RATE RP/SM/MO US$/SM/MO EUR/SM/MO
60.0% (UNITS)

Purpose-Built Rental Apartments (Jakarta) 2,731 40.2% Rp. 241,550 US$16.62 €14.15
40.0%
Serviced Apartments (Jakarta) 5,583 52.5% Rp. 356,576 US$24.53 €20.89
Historical Average = 43.7%
20.0% Condominiums-for-Lease (Greater Jakarta) 149,670 47.8% Rp. 148,025 US$10.18 €8.67

TOTAL 157,984 47.8% Rp. 248,717 US$17.11 €14.57

0.0%
Rental rates reflect gross rents
Overall Vacancy US$/Rp = 14,536; €/Rp = 17,071

SIGNIFICANT UNDER CONSTRUCTION PROJECTS Q1 2021 ARIEF RAHARDJO

COMPLETION Director, Strategic Consulting
PROPERTY DISTRICT SEGMENT APPROX UNITS
SCHEDULE +62 21 2550 9500 / Arief.rahardjo@cushwake.com
Somerset Kencana Pondok Indah Upper-Middle 150 2021
Somerset Sudirman Sudirman Upper-Middle 176 2021 HANDY CAHYADI
Citadines Sudirman Sudirman Upper-Middle 253 2021 Senior Manager, Strategic Consulting
+62 21 2550 9500 / Handy.cahyadi@cushwake.com
Citadines Gatot Subroto Gatot Subroto Upper-Middle 102 2021
Ascott Menteng Menteng Upper 151 2021
TOTAL 832

cushmanwakefield.com

NEWLY COMPLETED PROJECTS Q1 2021 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION

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contained within this report is gathered from multiple sources b elieved
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