Industrial Q2 2023
Supply: No New Industrial Land Supply
The remaining industrial land supply in favorable area becomes limited, developers may face challenges in finding suitable locations to establish or expand their land bank. The industrial land supply of the Greater Jakarta area during the Q2 of 2023 remains the same as in the previous quarter, standing at 16,392 hectares.
In the future, the potential expansion of industrial activities is expected to come from areas such as Bekasi, Karawang, and its surroundings.
There was addition of 215,000 sqm of new supply from 2 warehouse projects, bringing the total supply of warehouse for lease in the Greater Jakarta area to 2,44 million sqm. Warehouse for lease development remains attractive to both local and international developers, targeting at logistics players, that are focusing to optimize their supply chains and improving the effectiveness of inventory management to meet customer demand promptly
Demand: High Occupancy Rate of Warehouse Whilst Industrial Land Sales Remained Soft
Land sales transactions during the review quarter were recorded at 33.2 hectares, with Manufacturing accounted for the largest portion, representing 30.1% of the land sale transactions, followed by Automotive and EV Related at 29.2%, Logistics and Warehouse at 12.0%, and other sectors such as textile, packaging and others, absorbed the balance of the demand.
As of June 2023, the average occupancy rate of warehouse for lease in the Greater Jakarta area stood at 88.2%, increased by about 0.8% from in the previous quarter, with demand still mainly came from third-party logistics, FMCG, and automotive related sectors.
Pricing: Price Stood At The Same Level
The industrial land price stood at the same level in several quarters with changes is mostly due to exchange rate. The average land price in the Greater Jakarta area was recorded at Rp 2,637,000 per sqm, increased slightly by 0.3% QoQ and by 2.0% YoY. As new warehouse supply maintain competitive prices, rental rate of warehouse for lease in the Greater Jakarta area is expected to remain stable at Rp 75,000 per sqm / month.
Hotel H1 2023
Supply: No New Supply in 1H 2023
The Jakarta hotel market is still in recovery stage with slowing down of construction progress of several hotel projects continued. Whilst there is no new hotel commenced operations in 1st semester 2023, approximately 800 hotel rooms are scheduled to start operation in 2nd semester 2023. With no additional supply of hotel rooms in the 1st semester 2023, the cumulative supply of hotel rooms remained at 42,992 rooms at the end of June 2023.
Demand: Increasing Visitors Led to Increased Demand for Hotel Rooms
On December 30, 2022, the Restrictions on Community Activities (PPKM) were officially removed in all provinces of Indonesia. Based on PT Angkasa Pura II data from January to May 2023, the cumulative total of passenger arrivals at AP II’s 20 airports reached 31.7 million passengers, and the the number of passengers in January-December 2023 is projected to reach 73 million passengers. Soekarno-Hatta International Airport serves about 63% of the total number of passengers at all AP II’s Airports.
Even though business activity was relatively slow at the beginning of the year because most private or government institutions were still preparing their activity budgets and in the months of Ramadhan March and April 2023, other months in the 1st semester of 2023 witnessed the increase in meeting activities and other MICE events such as international music concerts, sport and exhibition events that contribute to the increasing demand for Jakarta hotel rooms.
