Pricing: Asking Rents for Serviced Apartments and Purpose Built Remained Stable
The average asking rent of the overall rental apartment market increased during Q1 2024, with Condominium-for-lease units experiencing the highest rental increase among the other sub- sectors, at +7.8% and +1.0% YoY and QoQ increase respectively, to the level of Rp 165,751 per sqm pm.
Serviced apartment sub-sector experienced a slight rental increase of +5.0% YoY to Rp 397,264 per sqm pm, which also marked a +0.7% QoQ increase.
Meanwhile, asking rent of most of the Purpose-built rental apartments remained relatively the same as that in previous quarter, resulting in the minor YoY increase of only 0.4% to Rp 216,413 per sqm pm, or a 0.4% increase over Q4 2023. Many serviced apartment and purpose-built rental apartment projects maintained a cautious stance on pricing, in anticipation of the weakened demand due to the general economic uncertainties.
Industrial Q1 2024
Supply: New Supply from Expansion of Industrial Estate in Eastern Corridor
Expansion of Jababeka 9 added 60Ha of industrial land into the industrial land supply in Greater Jakarta area, during the first quarter of 2024, bringing the total cumulative industrial land supply to 16,628 hectares.
Industrial land transactions in industrial estates along the Eastern corridor of Jakarta will remain more active than those in the Western corridor, and future industrial land supply is expected to come from estates along the eastern corridor.
During the review quarter, there was addition of an estimated 95,000 sqm new warehouse space, bringing the total supply of warehouse for lease in the Greater Jakarta Area to 2,76 million sqm, with demand mainly comes from logistics sector.
Demand: Gradual Increase of Industrial Land Demand, Whilst Warehouse Occupancy Rate Remained Stable
Land sales transactions during the review quarter were recorded at 64.41 hectares with Data Center and Automotive sectors represented the largest share, making up 47% of the land sale transactions over the review quarter, with other sectors such as Textile, Packaging, Logistics, and Chemical contributed to the rest of the take up.
As of March 2024, the average occupancy rate of leased warehouses in the Greater Jakarta area experienced a slight increase, reaching 86,3%. This indicates a 0.3% rise compared to that in the previous quarter. A similar demand pattern to in the previous quarter was observed, with primary demand came from logistic sector, followed by automotive and fast-moving consumer goods (FMCG).
Pricing: Modest Price Increase
The industrial land price remained relatively stable through the last several quarters, with currency exchange rate fluctuations as the main factor affecting the price changes.
The average industrial land price stood at Rp 2,749,000 per square meter over the review quarter, marking a modest quarterly increase of 2.35% and a year-on-year growth of 4.6%. The increasing price trend is expected to continue due to the limited availability of land in favorable areas.
The average rental rates of leased warehouses in the Greater Jakarta Area remained relatively stable with slight increase in anticipation of the continued competitive market, standing at Rp 78,000 per square meter per month.
