Lippo Mall East Side at Holland Village and Retail Podium at Thamrin Nine Tower are anticipated to enter the market in the upcoming quarters and will add approximately 67,000 sqm of retail space to the market. Should all the proposed new centers meet their completion schedules, the total Jakarta retail supply will reach 4,774,000 sqm by the end of 2023.
Demand: Stable Traffic and Footfall Monitored During 2nd Quarter of 2023
The overall occupancy rate during the second quarter of 2023 was stable and remained at 77.2% (0.0% QoQ). The vacancy rate of strata-title malls elevated to 38.7% which mainly caused by the closing of hypermarkets as anchor tenant in the last quarter. Retail centers experienced a buoyant start to the year with picking-up traffic of visitors, notably during the holiday season, even though was still below the pre-pandemic level.
The lifestyle centers are ascending to be a retail destination as visitors are seeking for experiences. Along with the opening of Uniqlo’s first road-side store which occupies approximately 2,000 sqm retail space, Foodmax Supermarket joined as big tenant in One District at Puri.
Another entertainment spot, W Superclub, opened its door at Artha Gading Mall and Kinokuniya Bookstore is coming to Central Market PIK. In fashion industry, The Children’s Place, an American kids’ fashion brand, set its footprint in Grand Indonesia and Herschel Supply & Co finally open its first outlet store in Gandaria City.
Pricing: No Price Movement
The average rental rate is foreseen to remain stable for the rest of 2023, standing at Rp808,500/sqm/month (0.0% YoY) as no landlords denoted to increase their rental rate in the short-term in anticipation of the upcoming political year of 2024. On the other hand, a slight increment on service charge may occurred at the end of this year, from the current average service charge of Rp 190,400/sqm/month (0.0% YoY).
Lini Djafar, Managing Director, Arief Rahardjo, Director Strategic Consulting, Nonny Subeno, Director Landlord Advisory, Handa Sulaiman, Vice Chairman Capital Markets Group, & Wira Agus, Director Industrial Land Sales
Condominium Q2 2023
Supply: The Condominium Market Remains Soft, with No New Projects Launched
The total cumulative supply of Greater Jakarta condominiums stood at 375,438 units in the review quarter, increased by 0.29% quarteron-quarter and 6.8% year-on-year. Approximately 1,090 condominium units from 3 projects were completed in the review quarter, mostly in South Jakarta.
At the same period, no new projects were introduced to the market and the total proposed condominium supply remained unchanged at 112,089 units. While some developers still tested the market by doing pre-registration of interest for their prospective projects, most developers focused on marketing of the current supply.
Proposed supply is led by the lower-middle segment at 45.8%, followed by middle, upper-middle, and upper segments at 40.3%, 9.3% and 4.6% respectively. By area, the additional supply of existing and future projects occurred in the Debotabek area, mostly in Bekasi & Tangerang.
Existing condominium units in the Debotabek area stood at 161,489 units, representing 43% of the total supply in the Greater Jakarta area. Whereas, the proposed condominium supply in the Debotabek area is expected to reach 87,388 units or 78% of the total proposed supply.
