research & forecast report q1 2015 jakarta apartment
TRANSCRIPT
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
1/11
Apartment Sector Apartment for Strata-title
Supply
Commencing in 2015, the cumulative supply of apartment units in
Jakarta grew at a moderate pace. Te apartment market received
3,255 new units, up by 2.3% QoQ, from seven projects comprising
four brand new projects and three extension towers. Tese 3,255
units, or 11% of the total projected 29,451 new units that will be
completed this year, are scattered in all areas of Jakarta, except the
CBD. Of the total supply in this quarter, 38% is located in South
Jakarta, while the remaining portions are located in North Jakarta
(25%), East Jakarta (22%), West Jakarta (11%) and Central Jakarta
(6%). Overall, with the addition from newly-completed projects,
the total existing stock of strata-title apartments in Jakarta rose
to 146,300 units. By location, the non-prime areas (North Jakarta
and West Jakarta) dominate the market with 22.2% and 21.6% of
the total stock, respectively. Te remaining stock is distributed in
South Jakarta, CBD area and Central Jakarta at 21.1%, 15.7% and
13.2%, respectively, while East Jakarta had a mere 6.2% of the total
inventory.
Te first quarter of the year began with optimism amongdevelopers as they launched several new apartment projects.
Compared to the same quarter last year, there were 7,276 newly-
introduced and launched units, 115% higher than in the same
period last year. Demand for apartments in Jakarta has been
notably strong during the last three years, evidenced by almost
all new completed apartment projects achieving more than a 90%
sales rate. Apartment units are still perceived as an investment
tool as they provide capital gains of around 10 - 25% (if bought at
the initial offering) and rental yield expectations of around 6 to 8%
per year.
Te reform of Indonesia’s fuel subsidy policy will have a positive
impact on the property sector as the government aims to allocatethe budget to more productive uses, such as improvements in
infrastructure. Te acceleration of infrastructure projects will
expand the economy, in line with the government’s target of a
5.5% GDP growth this year, an increase 0.5% from the growth in
2014.
Research &Forecast Report
Jakarta | Apartment1Q 2015
Accelerating success.
“The “wait and see” attitude caused by national elections in 2014
and a slowing economy as a result of the strengthening US dol-
lar against local currencies in the Asia Pacific region reduced thegrowth rate of apartment supply last year. With only half of the
total projected supply in 2014 being materialized (around 10,000
units), 2015 will become a tougher market as 29,451 units are
projected to be completed. As a result of the softening apartment
market, prices of apartments only climbed modestly by 2.7% QoQ
slightly lower than in the previous quarter of 3.1%. Meanwhile, the
absorption rate of future apartment projects was down by 3.7% to
68.4% QoQ.”
Ferry Salanto | Associate Director - Research
https://twitter.com/colliersintl
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
2/11
2
Source: Colliers International Indonesia - Research
Notes:
*Price excludes 10% VA
**NUP (Indonesian term for Nomor Urut Pemesanan) or also known as priority pass is a new marketing strategy commonly applied by reputable developers to gauge the interestof potential buyer in the initial offering
Source: Colliers International Indonesia - Research
Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
List of Completed Projects During 1Q 2015
NAME OF DEVELOPMENT LOCATION REGION DEVELOPER NO. OF UNITS
Belmont Residence (Tower Montblanc) Jl. Meruya Ilir West Jakarta Gapura Prima 350
The Royal Springhil l (Lotus Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta Springhil l Golf Group 192
Titanium Square Jl. Raya Bogor, Pasar Rebo East Jakarta PT Titanium Property 725
Northern Ancol Residence Ancol North Jakarta Jaya Ancol 800
La Venue - South Tower Jl. Pasar Minggu South Jakarta PT Bintang Rajawali (Sinar Mas Group) 341
Botanica Apartment Simprug, Kebayoran Baru South Jakarta Pikko Group 626
Woodland Park (Trambesi tower) Jl. Kalibata Raya South Jakarta PT. Pardika Wisthi Sarana 221
Newly-Introduced Apartment During 1Q 2015
NAME OF DEVELOPMENT LOCATION REGIONEXPECTED
COMPLETIONTIME
ESTIMATED PRICE/SQ M*
NO. OFUNITS
REMARKS
South Hill Jl. Denpasar Raya CBD 2018 IDR37 - 39 million 611 Pre-sales
Green Pramuka (Nerine Tower) Jl. Pramuka Central Jakarta 2017 IDR16.7 million 1,000 Launched
Podomoro Park Jl. I Gusti Ngurah Rai East Jakarta 2018 IDR18.5 million 3,000 Introduced (NUP system **)
The Hamilton Jl. Teuku Nyak Arief South Jakarta 2017 IDR49.5 million 112 Introduced (NUP system**)
Pakubuwono Spring Jl. Teuku Nyak Arief South Jakarta 2018 IDR51 million 545 Launched
La Terrasse Jl. Deplu Raya No.12 South Jakarta 2018 IDR37 million 111 Launched
Branz Simatupang (2 tower) Jl. TB Simatupang South Jakarta 2018 IDR28 million 381 Introduced
Synthesis Residence Kemang Jl. Ampera Raya South Jakarta 2018 IDR29.5 million 1,100 Introduced (NUP system**)
19 Avenue (Tower B) Jl. Daan Mogot West Jakarta 2017 IDR10.5 million 416 Launched
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
3/11
3
As of 1Q 2015, there are 7,276 units at either newly-introduced
or newly-launched projects, which are mainly located in South
Jakarta, representing 53% of the total units. Among the districts
in South Jakarta, B Simatupang remains in the spotlight as can
be seen by the growing number of office developments that drive
the growth of apartment development in the surrounding area.
Te supply of new apartment units during 2015 is projected to be
substantial, i.e. 29,451, should all projects be completed. All in
all, the total projected units that will come into the market from
2015 to 2018 will be 80,881 new units, mainly supplied in West
Jakarta with 23% of the total supply, followed by East Jakarta
and South Jakarta with 22 and 20%, respectively. ypically,
apartment development in West Jakarta is characterised by
massive unit projects targeting the middle-low income segment,
offering small units in order to make prices affordable. Te units
of these apartment projects typically come with areas from 22
sq m for studio units to 70 - 80 sq m for 3-bedroom units. On
the other hand, East Jakarta will see abundant new projects in
the next two to three years, mainly coming from two projects, i.e.
Green Signature and Bassura City, which are located in Cawangand Cipinang, respectively.
The Distribution of Future Apartment Developmentsin Several Regions of Jakarta
Source: Colliers International Indonesia - Research
Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2015F 2016F 2017F 2018F
U n i t s
CBD Central Jakarta South Jakarta
North Jakarta East Jakarta West Jakarta
New Supply Pipeline (2015 - 2019)
APARTMENT NAME LOCATION REGION NO. OF UNITS
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 H Residence Kemayoran (Amethyst) Jl. Rajawali Selatan Central Jakarta 800
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) + Tower Dallas Jl. Pahlawan Revolusi East Jakarta 1,904
Titanium Square Jalan Raya Bogor Kav. 27 Pasar Rebo East Jakarta 725
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
Bassura City (Tower Alamanda) Jl. Basuki Rahmat East Jakarta 600
Bassura City (Tower Geranium) Jl. Basuki Rahmat East Jakarta 900
Teluk Intan (Tower Saphire) Jl. Teluk Gong North Jakarta 1,100
Pluit Seaview (Tower Maldives) Pluit North Jakarta 940
Pluit Seaview (Tower Belize) Pluit North Jakarta 300
Cal lia Apartment Jl. Perintis Kemerdekaan North Jakarta 560
The Oak Tower (2 Towers) Jl. Perintis Kemerdekaan North Jakarta 821
continued
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
4/11
4 Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
APARTMENT NAME LOCATION REGION NO. OF UNITS
continued
Northern Ancol Residence (1Q) Ancol North Jakarta 800
Green Bay Pluit (Sea View) Jl. Pluit Karang Ayu North Jakarta 2,072
La Venue - South Tower (1Q) Jl. Pasar Minggu South Jakarta 341
The Royal Olive Residence Tower I Jl. Buncit Raya South Jakarta 225
Senopati Penthouse Jl. Senopati Kav 45 South Jakarta 63Senopati Suites 2 Jl. Senopati South Jakarta 81
LA City Apartment (Tower A) Jl. Raya Lenteng Agung, Jagakarsa South Jakarta 980
La Maison Barito Barito South Jakarta 80
Botanica Apartment (3 Towers) Simprug, Kebayoran Baru South Jakarta 626
Woodland Park (Trambesi tower) Jl. Kemukus No. 6, Fatahil lah South Jakarta 221
1 Park Avenue (3 Towers) Jl. KHM Syafi' I Hadzami South Jakarta 279
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
Izzara Apartment (South and North Tower) TB. Simatupang South Jakarta 542
The Aspen Peak at Admiralty Jl. Fatmawati South Jakarta 644Niffaro Apartment (Ebony Tower) Jl. Kalibata Raya South Jakarta 288
Grand Dhika Mansion Pejaten (Sector 1) Jl. Siaga Raya South Jakarta 44
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
Belmont Residence (Tower Montblanc) Jl. Meruya Ilir West Jakarta 350
The Nest Apartment Jl. Raden Saleh Raya, Meruya Utara West Jakarta 1,100
Green Palm Residence @ Puri Jl. Kosambi West Jakarta 1,000
19 Avenue Apartment 9 (Tower A) Daan Mogot West Jakarta 338
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
Sudirman Suites Jl. Sudirman CBD 380
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 Hi ll 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 Royal Springhill (Bulgari Tower) Jl. Spring Hill Residence Kemayoran Central Jakarta 192
Hol land 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
Sentra Timur Residence (Tower Tosca) Pulo Gebang East Jakarta 133
Pluit Seaview (Tower Ibiza) Pluit North Jakarta 500
Pluit Seaview (Tower Bahama) Pluit North Jakarta 650
La Venue - North Tower Jl. Pasar Minggu South Jakarta 253
Kemang Vil lage (The Bloomington) Jl. P Antasari South Jakarta 150
continued
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
5/11
5 Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
APARTMENT NAME LOCATION REGION NO. OF UNITS
continuation
Senopati Suites 3 Jl. Senopati South Jakarta 54
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
Lexington Rersidence Pondok Pinang South Jakarta 275Apartment Pejaten Park Residence Jl. Warung Buncit Raya No.21 South Jakarta 560
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
Sapphire Residence Lebak Bulus South Jakarta 37
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
Belmont Residence (TowerAthena) Jl. Meruya Ilir West Jakarta 193
Puri Mansion Apartment (Tower A) Puri Mansion West Jakarta 900Madison Park Tanjung Duren West Jakarta 1,200
Veranda Jl. Pesanggrahan Raya, Kembangan West Jakarta 174
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
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
The Batik @ Pejaten Jl. Siaga Raya South Jakarta 200
La Foret Vivante Jl. Limo, Permata Hijau South Jakarta 253Selatan 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
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
Regatta London Tower Jl. Pantai Mutiara North Jakarta 186
continued
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
6/11
6
Source: Colliers International Indonesia - Research
Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
APARTMENT NAME LOCATION REGION NO. OF UNITS
continuation
Verde Two (Tower West) Jl. Rasuna Said CBD 152
Lavie Jl. Denpasar Raya CBD 320
South Hill Jl. Denpasar Raya CBD 611
Le' Parc Jl. Thamrin CBD 100
Regent Residences (tower 1) Semanggi CBD 100
Core Sky Residence Pulo Gebang East Jakarta 282
Sahid Garden Residence Ciracas East Jakarta 476
Gold Coast Apartment (Atlantic Tower) Pantai Indah Kapuk North Jakarta 568
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
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 Milano) 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
One Otium Residence Jl. Pangeran Antasari No.8 South Jakarta 160
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
Ciputra International Puri Indah (Tower Amsterdam) Puri Indah West Jakarta 412
Grand Madison 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
Apartemen Taman Permata Buana Taman Permata Buana West Jakarta 550
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
7/11
7
Demand
Following a downturn trend in the previous quarter, the sales
of strata-title apartments, particularly in the primary market,
continued to record slow absorption. Tis slow market situation
was highlighted by low GDP growth and a rupiah depreciation
against the US dollar, which affected the overall economy of
Indonesia, particularly by lowering the purchasing power of themiddle class. Te weakening local currency against the US dollar
has made construction costs more expensive, particularly for
upper- to luxury-class apartments, as 30 to 40% of the material
components are imported goods. Furthermore, the abundance
of supply puts the overall market in a tough situation since there
are about 80,000 units (during 2015 - 2018) being marketed. In
view of this, we expect to see a further softening in the strata-title
apartment market throughout 2015.
Source: Colliers International Indonesia - Research
Source: Colliers International Indonesia - Research
As of 1Q 2015, the overall average take-up rate for strata-title
apartments (both existing and under-construction projects) in
Jakarta was 85.5%, down slightly from the previous quarter’s
87%. Te table above shows that existing apartment projects
in South Jakarta experienced a decrease in the take-up rates
from the previous quarter, while the non-prime area posted an
increase of 0.3% from the previous quarter but experienced a
drop for the under-construction projects. On the other hand, thetake-up rates for existing projects in the CBD apartment market
remain the same as the previous quarter, at 99.3%.
Source: Colliers International Indonesia - Research
Te pre-sales activity of under-construction projects underwent
a declining trend in all regions of Jakarta. Te take-up rate in
South Jakarta experienced the lowest drop, mostly due to the
abundant supply of newly-introduced or launched projects in
the last three years. Similar to South Jakarta, the pre-sales rate
in the CBD area also experienced a declining sales rate because
most of the projects saw slower absorption than in 2014. Te
sales performance of under-construction projects is very muchaffected by the influx of new projects. For example, one new
middle-upper class project entering the pre-sales stage put
downward pressure on the overall take-up rate during January
- March 2015. Similarly, the continued influx of new projects in
the non-prime area (including Central, North, West and East
Jakarta) has resulted in a downswing of the take-up rate by 2.3%
compared to the previous quarter.
Asking Price
Despite the lowering sales performance during the quarter,average asking prices for strata-title apartments continued to
demonstrate an upward trend. As of 1Q 2015, the average asking
price of apartments in Jakarta rose by 2.7% QoQ to IDR28.4
million/sq m. Based on location, the new apartments in non-
prime locations posted the highest price increase, followed by
South Jakarta and the CBD area. Benefiting from a relatively
lower price compared to South Jakarta and the CBD area, some
projects in non-prime areas are enjoying a good take-up rate and
that has helped the average price to improve. On the other hand,
the market perceives that the current prices of apartments in the
CBD have reached a peak.
Source: Colliers International Indonesia - Research
Te pace of apartment prices in 2014 slowed compared to the
aggressive price growth in 2011 - 2013. Te slowdown is in line
with the government’s expectations, as they are very concerned
with the persistently soaring prices. Tis trend is expected to
continue throughout 2015 as the government is planning tofurther tighten the real estate market by imposing taxes on a
broader range of the property segment.
Bank Indonesia’s target to curb the growth of property prices by
tightening the LV (Loan to Value) regulation has shown results.
As on the chart below, the average QoQ changes of apartment
prices in 2014 has been relatively slower than the strong growth
since 2012 - 2013. During 2011 - 2013, the average QoQ changes
in apartment prices increased by 3.34%.
Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
Take-up Rates Performance of Existing and Under
Construction Projects
AVERAGE TAKE-UP RATES Q Q QoQ
Existing Projects 95.6% 95.7% 0.10%
Pre-Sales rate of Under ConstructionProjects
72.1% 68.4% -3.70%
Average 87.00% 85.50% -1.50%
Take-up Rates Performance of Existing Projects in
Three Major Areas
TAKE-UP EXISTING PROJECTS Q Q QoQ
CBD 99.3% 99.3% 0.0%
South Jakarta 97.9% 97.6% -0.3%
Non-Prime area 93.7% 94.0% 0.3%
Average Asking Price of Apartment per Sq m
ASKING PRICE/SQ M Q Q QoQ
CBD 43,472,842 44,135,684 1.5%
South Jakarta 32,033,471 32,713,013 2.1%
Non-Prime area 20,764,022 21,285,155 2.2%
Take-up Rates Performance of Future Projects in
Three Major Areas
TAKE-UP EXISTING PROJECTS Q Q QoQ
CBD 88.3% 83.9% -4.4%
South Jakarta 78.0% 68.6% -9.4%
Non-Prime area 69.4% 67.1% -2.3%
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
8/11
8
Te trend of slowing demand is likely to persist in the upcoming
quarters. o anticipate this, developers continue to offer
financing incentives like cash instalment payments and in some
cases, buyers are not required to make a down payment. Tis
payment scheme has become a preferable method of paying
since it does not require bank approval and offers flexibility to
manage the cash flow. Furthermore, developers, especially those
having strong working capital, are confident in offering longer
cash instalments for up to 60 months.
Payment Method Composition in PurchasingApartment
Source: Colliers International Indonesia - Research
QoQ Changes of Average Asking Prices of Apartmentin Jakarta
Source: Colliers International Indonesia - Research
Apartment For Lease
Supply
After Ascott Kuningan became available in the last quarter, there
was no new supply of apartments for lease during 1Q 2015.
As such, the total supply of both serviced and non-serviced
apartments in Jakarta remained at 8,519 units. Te majority ofapartments for lease in Jakarta are designed to meet expatriate
standards with spacious sizes, and therefore these projects are
mainly found in the CBD and South Jakarta for two main reasons,
i.e. the locations are in close proximity to the commercial area
and are still in the catchment area of reputable international
schools.
The Distribution of Apartment for Lease by Area
Source: Colliers International Indonesia - Research
Te apartment for lease market in Jakarta was mainly dominated
by two global brands of serviced apartment operator, i.e. Te
Ascott Limited and Frasers Hospitality. Te Ascott Limited has
three brands in operation, Ascott Residence, Somerset and
Citadines. Frasers Hospitality has only Fraser Residence but in
the upcoming years, Fraser Hospitality will have Fraser Suites
(Ciputra World II), Fraser Place (Setiabudi Sky Garden) and
Capri by Fraser.
A strong operator brand for serviced apartments is a crucial
factor for differentiation from other products and to guarantee a
global service level. Several major serviced apartment operators
have multiple brands to serve different market segments.
Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
Mortgage
26%
Cash
Installment
58%
Hard Cash
16%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2011 2012 2013 2014 2015YTD
CBD
44%
South Jakarta
35%
Non-prime
21%
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
9/11
9
Source: Colliers International Indonesia - Research and Fraser Cachet (Issue 18)
Occupancy
Te apartment for lease market experienced a minor occupancy
decrease of 0.4% QoQ to 75.3%. Leasing activity during the
initial period of 2015 was relatively stagnant highlighted with
“come and go” tenants and the absence of new enquiries from
expatriates. Tis figure also marked a 0.9% decrease compared
to the same quarter in 2014. Moreover, it should be noted that
a large number of new middle-upper to upper class strata-title
apartments is likely to put downward pressure on occupancy
levels of apartments for lease. Generally, individually owned
apartment units are offered furnished, which meets expatriate
standards and taste.
Source: Colliers International Indonesia - Research
Source: Colliers International Indonesia - Research
New enquiries were reportedly limited, with only a few
apartments in South Jakarta enjoying an increase in occupancy
during the reviewed quarter. Softening demand during this
quarter was mostly limited to inquiries from western expatriates.
Te recent plunge in oil prices has impacted the overall
sluggish performance of apartments for lease in Jakarta as some
companies related to the oil business reduced the number of
their expatriates working in Jakarta. For some years, the oil and
gas industry has consistently driven the leasing market, mainly
for western expatriates.
o cope with this situation, some apartments for lease (bothserviced and non-serviced) offered more flexible leasing terms
and payment to entice tenants, allowing for short-term leasing.
Previously, the apartments for lease require a minimum lease
term of six months paid in advance. Recently, landlords are
offering monthly accommodation that can be paid monthly.
Rental Rates
Te average monthly rent of apartments for lease in Jakarta
persisted in its decline, falling 2% QoQ to USD21.8/sq m/
month. Te overall downward trend in the rental rate was
triggered by sluggish demand in the previous year, which caused
management adjust rents to maintain the occupancy level.
Several apartments for lease are offered in local currency,
however with the weakening rupiah against the US dollar and
that the overall rental rates presented here are in US dollars, the
overall figure dropped somewhat. During the “tenants’ market”
in the coming period, rents are expected to soften during 2015
and this will characterise the whole leasing market.
Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
List of Serviced Apartments Managed by Ascott and Frasers
NAME OF DEVELOPMENTYEAR OF
OPERATIONOPERATOR LOCATION TYPE
The Ascott Residence 1995 Ascott Limited Kebon Kacang Serviced Apartment
Somerset Grand Citra 1996 Ascott Limited Satrio Serviced Apartment
Countrywoods Residence 1996 Ascott Limited WR Supratman, Ciputat Serviced Apartment
Somerset Berlian 2006 Ascott Limited Permata Hijau Serviced ApartmentFraser Residence Sudirman 2011 Frasers Hospitality Setiabudi Serviced Apartment
Citadines Rasuna Jakarta 2013 Ascott Limited Rasuna Said Condotel
Fraser Residence Menteng 2014 Frasers Hospitality Menteng Serviced Apartment
Ascott Kuningan Jakarta 2014 Ascott Limited Satrio Serviced Apartment
Fraser Place at Setiabudi Sky Garden 2015 Frasers Hospitality Karbela Selatan Serviced Apartment
Somerset Kencana Jakarta 2015 Ascott Limited KHM Syafi'I Hadzami Condotel
Fraser Suites at Ciputra World Jakarta 2 2016 Frasers Hospitality Satrio Serviced Apartment
Fraser Suites Kebon Melati 2018 Frasers Hospitality Kebon Melati Serviced Apartment
Capri by Fraser 2018 Frasers Hospitality TB Simatupang Condotel
The QoQ Occupancy Performance for Non-Serviced
Apartment
AREA Q Q QoQ change
CBD 84.5% 84.6% 0.1%
South Jakarta 77.1% 76.7% -0.4%
Non-Prime area 74.9% 74.8% -0.1%
The QoQ Occupancy Performance for Serviced
Apartment
AREA Q Q QoQ change
CBD 78.7% 76.1% -2.6%
South Jakarta 74.6% 75.5% 0.9%
Non-Prime area 51.8% 53.4% 1.6%
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
10/11
10
Average Rental Rates of Apartment for Lease
Source: Colliers International Indonesia - Research
As mentioned above, some serviced apartments in the CBD
raised their rental rates by 3 to 5%. One serviced apartment
building adjusted the rental rate quite significantly and thus
impacted the drop of overall rental rates in the CBD. On the other
hand, apartments for lease in South Jakarta (including non-
prime area), which mostly consist of non-serviced apartments,
kept the rental rate the same as in the previous quarter. In
addition, since many non-serviced apartments quote the rental
rate in rupiah, the strengthening US dollar impacted the overall
rental rates in US dollars.
Source: Colliers International Indonesia - Research
Concluding Tought
Te government plans to introduce a new scheme of luxury
goods tax on residential property would adversely impact
property sales, particularly in the middle segment. Previously, a
5% luxury tax was expected to be imposed on property valued
at IDR10 billion but a revision is pending to reduce this to IDR2
billion. Te planned revisions would encompass a much widerrange of property sales, as a IDR2 billion apartment in Jakarta is
currently considered as middle to middle-upper segment, which
comprises about 23% of the total existing apartments. On the
other hand, it is unlikely to have a dramatic impact on the upper
to luxury class apartments, since this kind of buyer will pay for a
high-quality product and is not relatively price sensitive.
Te apartments for lease market is expected to remain quiet
in the upcoming quarters due to the current issues regarding
an additional regulation that will require foreigners to master
the Indonesian language before they are able to obtain a work
permit. Tis regulation may hamper the inflow of a number of
expatriates coming to Indonesia. In contrast, the establishmentof the ASEAN Economic Community should create a business
momentum that will gradually improve the Jakarta apartments
for lease market.
Research & Forecast Report | 1Q 2015 | Apartment | Colliers International
USD 0.00
USD 3.00
USD 6.00
USD 9.00
USD 12.00
USD 15.00USD 18.00
USD 21.00
USD 24.00
USD 27.00
USD 30.00
2 0 0 9
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3
2 0 1 4
2 0 1 5 Y T D
R e n t a l R a t e s / s q m
/ m o n t h
CBD South Jakarta (inc . Non-Prime Area)
Average Rental Rates of Apartment for Lease
AREA Q Q QoQ change
CBD USD28.58 USD27.81 -2.7%
South Jakarta (includingnon-prime area)
USD15.94 USD15.83 -0.7%
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251
-
8/19/2019 Research & Forecast Report Q1 2015 Jakarta Apartment
11/11
Copyright © 2013 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult
their professional advisors prior to acting on any of the material contained in this report.
About Colliers International
Colliers International is a global leader in commercial real estate services, with over 16,300 professionalsoperating out of more than 502 offices in 67 countries. A subsidiary of FirstService Corporation, ColliersInternational delivers a full range of services to real estate users, owners and investors worldwide,including global corporate solutions, brokerage, property and asset management, hotel investmentsales and consulting, valuation, consulting and appraisal services, mortgage banking and insightfulresearch. Te latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.
colliers.com
Primary Authors:
Ferry SalantoAssociate Director | Jakarta62 21 3043 [email protected]
Colliers International Indonesia
World Trade Centre 10th & 14th FloorsJalan Jenderal Sudirman Kav. 29 - 31Jakarta 12920Indonesia
TEL 62 21 3043 6888
Accelerating success.
502 offices in
67 countries on
6 continentsUnited States: 140
Canada: 31
Latin America: 24
Asia: 39
ANZ: 160
EMEA: 108
$2.3billion inannual revenue
158million square metersmanaged
16,300professionalsand staff
https://twitter.com/colliersintlhttp://www.linkedin.com/company/colliers-international%3Ftrk%3Dhb_tab_compy_id_5227https://www.facebook.com/colliersglobal%3Frf%3D105632526137251