Although some Purpose-Built projects experienced stagnancy in demands, a few projects received new inquiries, slightly taking up the demand for this sub-sector by +1.7% QoQ & +3.8% YoY, to 59.3% as of the end of the review quarter. Some Purpose-Built projects are reported to be on the track to recover to pre-pandemic occupancy level.
Pricing: Rental Rate Remained Stable
The overall rental rate in USD experienced a slight decrease during the quarter by -0.5% from that in the previous quarter due to the strengthening of USD exchange rate, standing at USD 16.66 psmpm. On YoY basis, however, the average rental rate increased by +4.0%.
Rental Rates of the Purpose-Built Rental Apartment and Serviced Apartment sub-sectors remained relatively stable with slight changes of +0.2% QoQ or -9.1% YoY and -0.5% QoQ or +10.6% YoY respectively, standing at Rp 275,271 psmpm and Rp 378,422 psmpm. Rental rate discounts, subject to negotiation, will still be applied in most rental apartment projects to maintain occupancy as market remains competitive.
Industrial Q1 2023
Supply: Expansion from Estates in Western and Eastern Corridors
The new supply of industrial land during the Q1 of 2023, came from estates in the Western and Eastern corridors of the Greater Jakarta area. An estate in Serang added about 100 hectares to the land supply, whilst estate in Bekasi added about 40 hectares to the land supply, bringing the industrial land inventory in the Greater Jakarta area to 16,392 hectares.
The completion of ESR in Greenland International Industrial Center (GIIC), Deltamas, Cikarang, and 2 other warehouse projects, added around 150,000 sqm of new supply in Q1 2023, bringing the total supply of warehouse for lease in the Greater Jakarta Area to 2,23 million sqm.
Demand: Eastern and Western Corridors Shared The Land Demand, Whilst Occupancy of Warehouse Remains Stable
Land sales transactions during the review quarter were recorded at 42.72 hectares, with the Eastern Corridor enjoyed about 23.6 hectares or 55% of the total net absorption, and the Western Corridor precisely in Serang, shared about 19.12 hecatres or 45% of the total net absorption.
By sector, chemical (44.5%) was recorded to give the highest contribution to the demand, followed by manufacturing (30.9%), medical and healthcare (11.2%), and other sectors such as logistic and warehousing, building material, automotive, packaging, and others absorbed the balance of demand.
As of March 2023, the average occupancy rate of warehouse for lease in the Greater Jakarta area stood at 87.4%, decreased by about 1.7% from in the previous quarter, with demand still mainly came from third-party logistics, followed by FMCG, and automotive.
Pricing: Price Remained Stable
The industrial land price increased only in the highly demanded area such as Cikarang, and sales price in Rupiah, changed slightly by 0.5% from that in the previous quarter and increased by 2.5% YoY, standing at Rp 2,628,000 per sqm. Meanwhile, rental rate of warehouse is expected to remain stable at Rp 76,000 per sqm / month, in anticipation of high competition of the market.
