Demand: Rising Take-Up and Occupancy Rate
The Greater Jakarta Condominium market remained stable, with the sales rate of the existing condominiums recorded at 93.6%, showing an increase of only 0.4% from the previous quarter and 0.1% YoY.
Meanwhile, pre-sales rate of the proposed condominium projects increased by 1.15% from the previous quarter to 60.4%, leaving 44,428 units of future stock to be absorbed. In terms of net-take up rate, the overall net-take up rate of both existing and proposed condominiums experienced an increment of 21% compared to that in the same quarter last year.
The occupancy rate in this quarter reached the highest occupancy rate since the pandemic, at 57.8% (2.03% QoQ, 6.8% YoY). Most improvement in occupancy rates occurred in the Jakarta CBD area and the secondary area adjacent to the university.
The overall transactions during second quarter of 2023 were dominated by lower-middle class projects, at 70.2% of the total transactions. In the upcoming quarters, the lower-middle class is still anticipated to dominate the market.
Pricing: Relatively Stable Price
Greater Jakarta condominium price trend has been relatively stable throughout the reviewed quarter, standing at Rp47,700,000 per sqm (0.6% QoQ and 7% YoY). Condominium price in the CBD Jakarta climbed by 5.7% over the previous year’s level to Rp58,900,000, while condominiums in prime locations experienced lower year-on-year increase of 4.8% to Rp50,500,000,- per sqm.
Rental Apartement Q2 2023
Supply: Newly Opened Citadines Gatot Subroto
An increase supply of 61 units was identified in the Serviced Apartment sub-sector from the opening of half of the total units of Citadines Gatot Subroto during the review quarter. The growth in supply for the Rental Apartment Sector came mainly from Condominium-forlease, from the newly completed Fatmawati City Center (Victoria Park Suite), South Quarter (Tower D), and Royal Heights (Tower B) which added 384 units to the supply.
Meanwhile, the supply of Purpose-Built Rental Apartment sub-sector supply remained unchanged.
Demand: On The Track for Recovery
Higher occupancy rate of Serviced Apartment sub-sector was recorded in the 2 nd Quarter of 2023, standing at 65.4% (+2.4% QoQ or +2.4% YoY) due to the occupancy increase of daily and short term stays in many Serviced Apartment projects due to Eid holidays and school holiday season.
Although many Purpose-Built rental apartment projects are experiencing stagnancy, a few remain on the track to recovery and the average occupancy level of this sub-sector improved slightly, standing at 60.2% (+0.9% QoQ or +6.2% YoY). Condofor-lease experienced a small growth in occupancy at 54.3% (+0.4% QoQ or +5.0% YoY)
Pricing: Rental Rate Remained Stable
The overall rental rate stood at Rp 255,417 psm pm which is a slight improvement from that in the previous quarter at +2.5% QoQ or +2.2% YoY. With no new supply, the rental rate of Purpose- Built Rental Apartment sub-sector remained stable with 0.0% QoQ growth or -3.7% YoY.
Rental rates of Serviced Apartment and Condo-for-Lease sub-sectors experienced slight increase at +3.7% QoQ or +5.0% YoY and +3.1% QoQ or 3.8% YoY, respectively. With the anticipation of remained competitive market, rental rate discounts will still be applied to maintain occupancy.
