PRICING: RELATIVELY STABLE PRICE LEVEL
The average industrial land price stood at Rp 2,791,000 psm over the review quarter, marking a modest quarterly increase of 1.30% and a year-on-year growth of 5.80%. Industrial land prices have remained relatively stable over the past several quarters, in which currency exchange rates being the primary factor influencing the price changes.
To remain competitive in the market, several industrial estates are offering price cuts, particularly to attract foreign demand.
In anticipation of the ongoing market competition, the average rental rates of leased warehouses in the Greater Jakarta Area is expected to remain stable, in the range of Rp 78,000 per square meter per month.
HOTEL H1 2024
SUPPLY: 725 ROOMS COMMENCE OPERATIONS IN THE FIRST HALF OF 2024
After approximately a year behind the original schedule, a total of 725 rooms commence operations in the first half of 2024, of the following star rating distribution: 32% of 3-Star, 46% of 4-Star, and 22% of 5-Star respectively.
The 4-star hotels offer more affordable pricing compared to their 5-star counterparts whilst provide comparable comprehensive facilities, making them an attractive option to both business and leisure travelers. The total cumulative supply of 3-star to luxury hotel rooms as per end of 1st half of 2024 was recorded at 43,647 rooms.
DEMAND: FLUCTUATED MONTHLY OCCUPANCY LEVEL IN THE 1ST HALF OF 2024
In accordance with the cycle, hotel performance in Jakarta in Q1 2024 experienced a slowdown. Elections in February also resulted in a slight decline in occupancy level. Ahead of the Ramadan fasting month, hotels are busy with MICE activities.
During Ramadan, hotels were taking advantage of revenue opportunities by offering Iftar Packages. In May after Eid al-Fitr, occupancy levels were seen to increase rapidly with families using several long holiday weekends for staycations at several hotels in Jakarta.
