The successful and relatively smooth general election process in the first quarter of 2024 is expected to boost the economic performance in the coming quarters, which will maintain office demand within positive territory. Occupancy is projected to improve further with the absence of new office supply in 2024.
Jakarta Retail Q1 2024
Supply: New Supply of Small Retail Facility Continues
As of the first quarter of 2024, the trend of new supply from a small life-style retail facility continues with the completion of Gafoy Kelapa Gading which has contributed 8,500 sqm of Net Leasable Area (NLA) to the market, bringing the cumulative supply to 4,719,500 sqm (0.4% YoY and 0.2% QoQ), reflecting a subtle yet continuous expansion in the retail sector.
Meanwhile, The Park Pejaten, formerly known as Pejaten Village, has also concluded interior renovation without additional retail space during the review quarter.
During this year, four major developments are on the horizon: Lippo Mall East Side at Holland Village, Agora Lifestyle Centre at Thamrin Nine, Mall Menara Jakarta and Cornerstone – Antasari Place.
These additions are expected to contribute a 2.2% increase to the future cumulative supply. Concurrently, several established shopping malls including Epicentrum Walk and Plaza Semanggi are undergoing interior renovations to enhance the shopper experience in the malls.
Demand: Increased Demand and More New International Brands
A demand growth of 2.9% YoY was recorded during the review quarter, increasing the total cumulative demand to 3,702,900 sqm. The average occupancy rate stood at 79.1% (2.5% YoY and 0.7% QoQ).
F&B sector continues to be the most active, closely followed by lifestyle brands, with new entries such as Flying Tiger Copenhagen at Gandaria City and Urban Republic at Pondok Indah Mall.
KKV also expanded to Lippo Mall Kemang and AEON Mall Tanjung Barat. The market also welcomed several international brands, such as Goldfield & Banks in Plaza Indonesia, ALO in Senayan City, Ebiga Jjamppong in Lippo Mall Puri, and Cat & the Fiddle and Tanyu Grilled Fish in Mall of Indonesia.
The Ramadan season has also observed to influence retail dynamics, with peak visitor hours shifted to around the breaking the fast time. Despite a quieter daytime traffic, visitor traffic during evening in Ramadan were notably bustling, underscoring the seasonal impact on consumer patterns in Jakarta’s retail sector.
Pricing: Stable Rental Rates and Modest Increase in Service Charge
During the review period, average rental rates in Jakarta’s retail market remained relatively unchanged at Rp 808,500 /sqm/month, showing no year-on-year or quarter-over-quarter changes. In contrast, there was a slight uptick in the average service charge by 2.9% YoY or 0.8% QoQ, standing at Rp 195,900 /sqm/month.
Condominium Q1 2024
Supply: No New Projects Launched
During the first quarter of 2024, the condominium market in Greater Jakarta remained at sluggish pace, to certain extent, influenced by the Presidential and general election process. No new projects were launched during the review quarter, with only one project, Cleon Mansion in Jakarta Garden City East Jakarta, being completed.
