bbgreaterjktlandedresidentialh22011

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H2 2011

APRIL 2012 1

Cushman & Wakefield, IndonesiaIndonesia Stock Exchange Building 2, 15/FJl. Jend. Sudirman Kav. 52-53, Jakarta, 12190

www.cushmanwakefield.com

BUSINESS BRIEFINGLANDED RESIDENTIAL MARKET

GREATER JAKARTA/INDONESIA

A Cushman & Wakefield Research Publication

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2011 MARKED AN OUTSTANDING PERFORMANCE

Declining mortgage rate and economic stability continued in H2 2011

Having accomplished a remarkable sales performance in

the 1sthalf of 2011, the good story continued until endof the year. The euro-zone crisis in 2011, which wasanticipated to spread the effect to Indonesias overall

property market, didnt cause any negative influencesto landed residential market in Greater Jakarta area. Incontrast, national economic stability had triggered bothdevelopers and consumers to be more passionate inperforming sales activities. From low to upper segmentresidential estates were actively hunted by end-usersand investors.

Sales activities in Ramadhan month in H2 2011, during

June July 2011, experienced slower growth in terms ofsupply and demand. People held their buying decisiontemporarily and developers preferred to launch their newhousing units after Ramadhan. Meanwhile, developersvigorously offered attractive year-end promotions thatfruitfully attracted prospective buyers. Thus, despite theslower sales activities during Ramadhan, overall salesperformance in Greater Jakarta landed residential marketin the 2ndhalf of 2011 was better than that in the 1 sthalf of2011.


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INTRODUCTION

Cushman & Wakefields landed residential market analysis is focused on actively

marketed estates located within Greater Jakarta. Furthermore, those selected estates

are considered as major developments.Estates specializing in Healthy Simple Housing(Rumah Sederhana Sehat/ RSH) are excluded from the analysis.

Our market area coverage includes (1) North Jakarta; (2) Central Jakarta; (3) EastJakarta; (4) West Jakarta; (5) South Jakarta; (6) Bekasi Municipality; (7) Bekasi Regency;(8) Tangerang Municipality; (9) South Tangerang Municipality; (10) Tangerang Regency;(11) Depok Municipality; (12) Bogor Municipality; and (13) Bogor Regency.

PICTURE 1: MARKET AREA COVERAGE

Classification of housing segment was based on sales price per unit as follows:

TABLE 1: HOUSING MARKET SEGMENTATION

HOUSE SEGMENT

UNIT PRICE PER UNIT

(RP.)

Lower (LO) 100 million to 250 million

Lower Middle (LM) 251 million to 450 million

Middle (MI) 451 million to 750 million

Upper Middle (UM) 751 million to 1 billion

Upper (UP) > 1 billion

1

3

4

5

6

7

8

LEGEND

(1) North Jakarta;(2) Central Jakarta;(3) East Jakarta;(4) West Jakarta;(5) South Jakarta;(6) Bekasi Municipality;(7) Bekasi Regency;

(8) Tangerang Municipality;(9) South Tangerang Municipality;(10) Tangerang Regency;(11) Depok Municipality;(12) Bogor Municipality; and(13) Bogor Regency.

2

9

10

11

12

13

Source: Cushman & Wakefield Indonesia Research, 2012



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GREATER JAKARTALANDED RESIDENTIAL

H2 2011

DEMAND AND OCCUPANCY

As population keeps growing over time and housing is a primary need, demand forlanded residential continues to increase. National economic stability and decreasingmortgage rate were the supporting factors during H2 2011 which had successfullyimproved the purchasing motivation of the prospective consumers.

Positive growths in sales rate on both semester and yearly basis were observed in allareas by end of H2 2011. This indicated that demand growth of landed residential washigher than supply growth during review semester. There were several cases where acluster launched and sold out shortly on the launch day, in some prominent residentialestates proving that trusted developers, easy access to location of activity and

comprehensive infrastructures and facilities were main considerations in the buyingdecision.

The average monthly take-up unit per estate in each area in the Greater Jakarta areawas recorded at Rp. 150.3 billion as of the 2 ndhalf of 2011, a 24.8% HoH growth and45.3% YoY growth. This significant growth was due to sales price appreciation in H22011.

Residential estates in Bekasi had the highest sales value growth in H2 2011 of 86.7%which was triggered by the active development of infrastructures and launching of newproducts.

A slight increase in average monthly take-up unit was observed during H2 2011 in theoverall Greater Jakarta landed residential market at 0.3 units. Conversely, a drop of 5.1units was recorded on YoY basis. Jakarta and Tangerang contributed to the negativeHoH and YoY growths.

Occupancy rate dropped slightly by 1.0% from in the previous semester to 82.6% byend of H2 2011. By area, residential estates in Bekasi had the highest occupancy rate of86.7%, followed by Tangerang at 85.2%. In contrast, the average occupancy rate inBogor-Depok area was still below 80%, at approximately 68.1%.

TABLE 2: SALES PERFORMANCE AND OCCUPANCY RATE

JAKARTA TANGERANG BOGOR-DEPOK BEKASIGREATER

JAKARTA

AVERAGE MONTHLY TAKE UP (UNIT NO.)

2H 2010 8.8 53.2 56.9 66.7 185.6

1H 2011 8.6 56.8 52.5 62.3 180.2

2H 2011 8.3 52.4 55.6 64.2 180.5

HoH Change -0.3 -4.4 3.1 1.9 0.3

YoY Change -0.5 -0.8 -1.2 -2.5 -5.1

AVERAGE MONTHLY TAKE UP (VALUE IN RP. BILLION)

2H 2010 9.8 42.6 17.4 33.7 103.4

1H 2011 8.5 58.9 19.6 33.4 120.4

2H 2011 8.4 59.1 23.0 62.3 152.9

HoH Change 0.0 0.2 3.4 29.0 32.5

YoY Change -1.3 16.5 5.6 28.6 49.4

Average Sales Rate in

Greater Jakarta

88.3% 90.1%

2010 2011


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A Cushman & Wakefield Research PublicationSALES RATE2H 2010 79.2% 93.9% 79.1% 87.9% 88.3%

1H 2011 79.9% 94.4% 82.7% 88.3% 89.4%

2H 2011 80.9% 94.6% 83.6% 89.7% 90.1%

HoH Change 1.0% 0.2% 1.0% 1.5% 0.8%

YoY Change 1.6% 0.7% 4.5% 1.8% 1.8%

OCCUPANCY RATE

2H 2010 81.3% 83.3% 66.9% 86.9% 81.6%

1H 2011 80.1% 86.2% 68.8% 87.0% 83.3%

2H 2011 80.3% 85.2% 68.1% 86.7% 82.6%

HoH Change 0.2% -1.0% -0.7% -0.2% -0.7%

YoY Change -1.0% 0.9% 1.2% -0.1% 1.0%

Chart 1 details average monthly take-up unit and value during H2 2011 in the GreaterJakarta area.

CHART 1: AVERAGE MONTHLY TAKE-UP

BEST SELLING UNITS

The majority of transactions during the review semester occurred in the upper segmentunits at 40%. The most sought after units ranged from Rp. 1.1 bio to Rp. 2.5 bio withbuilding size of approximately 126 sqm to 245 sqm.

More than half of sold units during H2 2011 in Tangerang occurred in the uppersegment units, contributed mostly by several prominent residential estates in Serpong

area. Similar to in Tangerang, most of sales transaction in Jakarta and Bekasi were inupper class segment at 37% and 29%, respectively. On the contrary, lower-middle

9 53

57

67

186

9 57

53

62

180

8 52

56

64

181

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

-

20

40

60

80

100

120

140

160

180

200

Jakarta Tangerang Bogor-Depok Bekasi Greater Jakarta

Take-UpValue/Mo

nth(Rp.

Billion)

Take-UpUn

it/Month(unit)

Unit 2H 2010 Unit 1H 2011 Unit 2H 2011

Rp. 2H 2010 Rp. 1H 2011 Rp. 2H 2011

Occupiers at 84.3%




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H2 2011

segment dominated sales in Bogor-Depok area, at 25%.

Overall, lower segment housing units experienced the lowest sales composition duringH2 2011 of the total transacted units, at 7%. The best selling unit type in this segmentwas type 21 at price of below Rp. 100 mio per unit, at about Rp. 68 mio.

CHART 2: SALES COMPOSITION DURING H2 2011

TABLE 3: BEST SELLING UNIT TYPES

HOUSE SEGMENT UNIT PRICE (RP. MILLION)

MOST FAVORITE UNIT SIZE (SQM)

BUILDING LAND

Lower 68 to 200 21 to 45 72 to 90

Lower Middle 315 to 338 45 to 56 105 to 120

Middle 500 to 588 55 to 96 62 to 120

Upper Middle 785 to 1,000 99 to 103 119 to 126

Upper 1,100 to 2,500 126 to 245 120 to 219

METHOD OF PAYMENT

The continued declining mortgage rate made it the most preferred method of paymentin all housing segments, used by 72% of buyers in lower segment, 83% in lower-middlesegment, 56% in middle and upper segment and 48% in upper-middle segment,respectively. Several residential estates cooperated with banks in offering specialinterest rate for mortgage, which have pushed desire to buy houses during H2 2011.

Upper-segment dominated

at 40% of overall salescomposition in GreaterJakarta landed residentialmarket in H2 2011.

1%

17% 11% 7%1% 5%

25%

10%10%26% 11%

24%

24%

18%

36%

28%

18%

26%

26%

37%

56%

16%29%

40%

Jakarta Tangerang Bogor-Depok Bekasi Greater Jakarta

Lower Lower-Middle Middle Upper-Middle Upper




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A Cushman & Wakefield Research PublicationCHART 3: PREFERRED METHOD OF PAYMENT

SUPPLY

Grew by 31.5% during H2 2011, the total planned area of Greater Jakarta landedresidential was recorded at about 50,748 ha. Two new residential estates were

observed to have entered the market during review semester, namely Sentul Nirwana inJonggol-Bogor and Suvarna Padi in Pasar Kemis-Tangerang.

A total of 294,103 housing units had been launched during the 2ndhalf of 2011, reflecteda 1.5% HoH growth, the same growth as that in H1 2011, and 3.1% YoY growth. Of allareas in Greater Jakarta, the housing units in Tangerang captured the largest proportionat 47% of the supply. Meanwhile, Jakarta only contributed about 7%, the same as than inthe previous semester, due to limited land.

In terms of planned area, Bogor-Depok had the largest portion of planned area at19,208 hectares and only 14.8% of them had been developed by end of 2011. On thecontrary, Jakarta which had the least planned area at 1,094 hectares had 54.2% of the

planned area developed, followed by Tangerang and Bekasi with 37.6% and 28.5%developed area, respectively.

TABLE 4: SUMMARY OF SUPPLY DURING 2H 2011

PLANNED AREA

(HA)

DEVELOPED AREA

(HA) SUPPLY (UNITS) % SUPPLY

Jakarta 1,094 593 20,379 7%

Tangerang 17,106 6,435 136,802 47%

Bogor - Depok 19,208 2,836 59,286 20%

Bekasi 13,340 3,805 77,637 26%

Greater Jakarta 50,748 13,669 294,103 100%

Mortgage was the most

preferred method ofpayment in all segments.

Housing Units Supply inGreater Jakarta (H2 2011)

25%6%

22% 22%

30%

3%

11%

22%30% 14%

72%83%

56%48%

56%

Lower Lower Middle Middle Upper Middle Upper

HARD CASH CASH INSTALLMENT MORTGAGE

Jakarta7%

Tangerang47%

Bogor-Depok20%

Bekasi26%




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H2 2011

A list of new supply in selected residential estates in the Greater Jakarta area ispresented in Table 5.

TABLE 5: NEW SUPPLY DURING 2H 2011

ESTATE CLUSTER MAIN TARGET

TANGERANG

Alam Sutera Pelangi @ Sutera Sitara UP

Bintaro Jaya Discovery Fiore UP

BSD City

The Anthea MI

Nittaya @ Avani MI to UP

Aleeka @ Avani UP

de Brassia @ de Park UP

Citra Raya

Graha Pratama Villa Verde LO

Blossomville Green Point LO to LM

Park View Residence LM to UM

Lagoon Ville MI to UM

Water Point UM

Kota Modern

Grand Golf I & IV UP

The Golf Residence UP

Paramount Serpong Lavender UM

Summarecon SerpongScarlett (residential lots) UP

Starling UM to UP

Suvarna PadiAkasia MI to UP

Cempaka MI to UP

JAKARTA

Citra Garden City The Edelweiss UP

Jakarta Garden City Zebrina (Cluster B) UPBEKASI

Lippo CikarangOakwood Phase 2 UP

Florencia Phase 3 UM

Summarecon Bekasi

Lotus Lakeside Residences Phase 1 UM to UP

Lotus Lakeside Residences Phase 2 UP

Lotus Lakeside Residences Phase 3 UP

Magnolia Residences Phase 1 MI to UP

Magnolia Residences Phase 2 MI to UP

Magnolia Residences Phase 3 UM to UP

Sentul Nirwana and SuvarnaPadi residential estatesentered Greater Jakartalanded residential market inH2 2011.


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A Cushman & Wakefield Research PublicationBOGOR

Bogor Nirwana Residence Harmony Boulevard (Phase 2) UP

Citra Gran Lake at The Dense MI to UM

Citra Indah Bukit Gladiola LM to MI

Harvest City Quince Blossom (Phase 1) LO

Kota WisataCoatesville Phase 2 MI to UP

West Covina Phase 2 MI to UP

Sentul City The Green Design UP

Sentul Nirwana

The Atmosphere UM to UP

The Breeze LM to MIThe Wind MI

Telaga Golf Sawangan Scotland LM

SALES PRICE, LAND PRICE AND CONSTRUCTION COST

Average sales price increment during H2 2011 was observed at 13%, whilst increases inconstruction cost and land price stood at 6% and 21%, respectively.

Of all areas in Greater Jakarta, Bekasi recorded the highest land price and sales price

appreciation at 33% and 19% by end of H2 2011, as the result of significantinfrastructure improvements in residential estates in Bekasi that would directly connectmain Jakarta-Cikampek toll road and the residential estates.

TABLE 6: SALES PRICE AND CONSTRUCTION COST INCREASE DURING H22011 (HoH)

AVERAGE INCREASE IN

SALES PRICE CONSTRUCTION COST LAND PRICE

Jakarta 12% 7% 16%

Tangerang 8% 4% 13%

Bogor - Depok 11% 8% 15%

Bekasi 19% 4% 33%

Greater Jakarta 13% 6% 21%

Continued positive growthin sales price, constructioncost and land priceSource: Cushman & Wakefield Indonesia Research, 2012



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H2 2011

Land prices in selected estates as of the 2nd

half of 2011 were shown in Table 6 asfollows

TABLE 6: LAND PRICES IN SELECTED ESTATES

AREA ESTATE

LAND PRICE PER SQM

(RP. MILLION)

TANGERANG Alam Sutera 5 to 9

Bintaro Jaya 4.6 to 7

BSD City 3.5 to 8

Citra Raya 1.2 to 3.5

Lippo Village 3.5 to 17

Paramount Serpong 4 to 5

Kota Modern 3.2 to 6

Summarecon Serpong 4 to 10

Suvarna Padi 1.6 to 2.5

JAKARTA Metland Menteng 4.2 (avg)

Jatinegara Baru 4 to 5

Jatinegara Indah 3.2 (avg)

Jakarta Garden City 4 to 7

Citra Garden City 4 to 6

BEKASI Grand Wisata 2.5 (avg)

Kota Deltamas 1.3 (avg)Kota Harapan Indah 4 (avg)

Kota Jababeka 3 (avg)

Lippo Cikarang 2 to 3.6

Summarecon Bekasi 2.6 to 4

BOGOR-DEPOK Bogor Nirwana Residence 2.4 to 4.4

Bukit Golf Riverside 1.6 (avg)

Citra Gran 2.8 to 3.2

Citra Indah 0.5 to 0.8

Harvest City 0.9 to 1.5

Kota Wisata 2.5 to 3

Sentul City 2.3 to 3.8

Sentul Nirwana 2.2 to 3

Telaga Golf Sawangan 0.9 to 1.6



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For more information aboutC&W Research, contact:

Arief Rahardjo

Head of Research & AdvisoryPT. Cushman & Wakefield Indonesia+(62 21) 2550 [email protected]

Runita Kesumaramdhani

Analyst of Research & AdvisoryPT. Cushman & Wakefield Indonesia+(62 21) 2550 [email protected]

Cushman & Wakefield (C&W) is known the world-over as an industry knowledge leader. Through the delivery of timely,accurate, high-quality research reports on the leading trends, markets around the world and business issues of the day, we aim toassist our clients in making property decisions that meet their objectives and enhance their competitive position.

In addition to producing regular reports such as global rankings and local quarterly updates available on a regular basis, C&W alsoprovides customized studies to meet specific information needs of owners, occupiers and investors.

C&W is the worlds largest privately-held commercial real estate services firm. Founded in 1917, it has 230 offices in 60 countriesand more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant andlandlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investmentmanagement, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for largecorporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory,including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise invarious industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary

reports available on its online Knowledge Center at:www.cushmanwakefield.com

This report has been prepared solely for information purposes. It does not purport to be a complete description of the marketsor developments contained in this material. The information on which this report is based has been obtained from sources webelieve to be reliable, but we have not independently verified such information and we do not guarantee that the information isaccurate or complete. Published by Corporate Communications.

2012 Cushman & Wakefield, Inc. All rights reserved.Cushman & Wakefield, IndonesiaIndonesia Stock Exchange Building 2, 15/F

Jl. Jend. Sudirman Kav. 52-53, Jakarta, 12190

www.cushmanwakefield.com

MARKET OUTLOOK

2012 is projected to be a vigilant year for both developers and buyers. As severalplanned national policies planned effectively applied in 2012, such as the planned oilprice increment in Q2 2012, the implementation of maximum loan to value at 70% ofsales price for housing mortgage as regulated by Bank Indonesia and the obligations ofdevelopers to report every transaction above Rp. 500 million to Indonesian FinancialTransaction Reports and Analysis Centre to avoid money laundering. Therefore, salesactivity in 2012 will potentially be slower than that in 2011.

However, developers will still actively launch several new products and continuedeveloping infrastructures and facilities. Construction cost will continue to increase in

anticipation of the plan of oil price increment in 2012. Sales value in 2012 is foreseen toexperience a modest positive growth.

bbgreaterjktlandedresidentialh22011

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