The nearest projects completion are expected to come from One District at Metland Cyber Puri, Lippo Mall East Side at Holland Village, and Retail Podium at Thamrin Nine Tower which will add approximately 88,200 sqm of retail space to the market. Should all the proposed new centers meet their completion schedules, the total Jakarta retail supply will reach 4,790,200 sqm by the end of 2023.
Demand: Outlet Closures and Business Expansions Were Monitored During 1st Quarter 2023
The occupancy rate during the first quarter of 2023 stood at 77.2%, decreased by 0.2% (QoQ). Along with the lifting of the public activity restrictions, traffic has been improved and footfall is expected to return to the pre-pandemic levels in the upcoming quarter.
Despite the improving conditions, the business challenge faced by hypermarket operators remained, with Transmart, an Indonesian hypermarket, closing its outlets in most strata-title malls: Mangga Dua Square, ITC Kuningan, ITC Permata Hijau, ITC Cempaka Mas, Mal Ambasador, and Tamini Square during the first quarter of 2023.
On the other hand, F&B industry remains as the most active retailers to expand business, filling up the vacancy in the retail centers. One international Fast Food retailer, Popeye, made a comeback to Indonesian market in 2023, with the opening of its first outlet in Skyline Building which will be followed by several outlets more outlets in Jakarta.
Lifestyle brands are also expanding their presence such as Atmos in Pondok Indah Mall, Footlocker’s 2-storey store in Kota Kasablanka, Rambla in Mall Kelapa Gading, and KKV in AEON Jakarta Garden City.
While local fashion and beauty brands are slowly extending its existence with flagship stores such as Tulola Jewelry and Rose All Day in Pondok Indah Mall. Meanwhile, Hardrock Café, a renowned Global bar-restaurant chain closed its door in Pacific Place after more than 20 years in the market.
Pricing: Stable Average Rental Rate and Service Charge
Average rental rate remained stable over the past four quarters, standing at Rp808,500/ sqm/month (0.0% YoY). The rental rate for ground floor in primary retail location stayed at Rp 984,500/ sqm/month and Rp 682,900 /sqm/month for secondary location in Jakarta.
Similarly, service charge remained stable at Rp 190,400/ sqm/month (0.0% YoY). Rental Rate and Service Charge, however, are foreseen to slightly increase in the upcoming quarters along with the improved market and footfall.
Condominium Q1 2023
Supply: Limited Newly Launched Project
Approximately 4,827 condominium units from 7 projects were completed in the first quarter of 2023, bringing the total completed supply to 374,348 units, which was an increase of 7.4% compared to the same quarter in 2022 (YoY). Most of the newly completed projects occurred in Tangerang, with the majority being middle-segment condominium projects.
