Debotabek area expect to see addition of eight shopping mall developments by the end of this year and early 2025: Living World Grand Wisata, Hampton Square, Eastvara Mall, Markt Lane Sentul, Mall at Little Tokyo Jababeka, Pakuwon Mall Bekasi, Summarecon Mall Bekasi Phase 2, including the Jakarta Premium Outlet.
If all these upcoming centers adhere to their development schedules, the cumulative retail space supply in the Debotabek area is projected to increase by 10.2% by the end of 2025.
DEMAND: THE RETAIL EXPANSION CONTINUES
The occupancy rate of the the Debotabek Retail market reached 73.5% in the first half of 2024, marking a 3.3% decline compared to the same period last year. This trend is likely to continue due to the anticipated arrival of new supply in the upcoming quarters. During the review semester, two major holiday seasons—Eid Fitr and the school holidays—boosted foot traffic to malls, greatly benefiting the entertainment sector.
AEON Store is expanding by opening its seventh outlet at Living World Kota Wisata. KKV has opened new stores at AEON Deltamas, Living World Kota Wisata, and The Park Sawangan, while Sports Direct is also making its presence at Supermal Karawaci.
Moreover, the Miniso brand has launched one of its largest outlets in Greater Jakarta at Mall @ Alam Sutera. In the entertainment sector, the first official Gashapon Bandai store has opened in Mall @ Alam Sutera. Oppo is also extending its experience store concept at Supermal Karawaci and Margo City. In addition, UNIQLO has opened its second neighborhood store at Hive Harapan Indah in Bekasi.
PRICING: GROWTH IN RENTAL RATES AND SERVICE CHARGES
The Debotabek retail market continued to experience modest growth in base rent and service charge, with a 2.4% increase in base rent and 2.9% increase in service charge, respectively. The service charge increment is expected to continue in the upcoming semester.
CONDOMINIUM Q2 2024
SUPPLY: NO NEW PROJECTS LAUNCHED OR COMPLETED
During the second semester of 2024, the total cumulative supply of Greater Jakarta condominiums remained at 384,640 units with no new condominium projects were launched or completed, signaling a significant pause of the market. The market stagnation have led to the shift of developers’ focus and buyer behavior.
The weak market has caused slight change in buyer behavior with buyers are now less interested in capital gains and more inclined towards purchasing existing condominium units that can be immediately used or rented out.
The VAT incentive introduced by the government has also played a crucial role in shaping the developers’ strategies. Developers are concentrating on selling their existing projects rather than initiating new ones. The tax incentive has made existing properties more attractive to buyers and help reducing the inventory of unsold units and stabilizing the market.
It is estimated that by the end of 2024, several condominium projects totaling around 14,000 units will be completed, mostly in Bekasi and South Jakarta.
