Post-pandemic economic recovery is going well in the capital city of DKI Jakarta. Shopping centers and malls in the capital are getting busier. Some developers will even build new malls. However, limited land is a problem.
Limited land has made retail developers target development outside Jakarta, especially in locations close to housing.
Head of Research Colliers Indonesia, Ferry Salanto, said that limited supply and land for retail development will increase occupancy rates in existing projects so that absorption is more optimal.
In Colliers’ Quarter IV/2022 report, 2 shopping center projects are still under construction, namely Lippo Mall East Side (within Holland Village) in Cempaka Putih with an area of 44,000 square meters.
The project by PT Lippo Karawaci Tbk. (LPKR) is planned to be present in 2023. In addition, there is also the Menara Jakarta Shopping mall project in Kemayoran covering an area of 90,360 square meters which is being worked on by Agung Sedayu Permai and is estimated to be completed in 2024.
“Especially in areas where most of the middle and upper-middle-class housing is located outside Jakarta, so this can provide attractive conditions for developers in residential areas with high purchasing power,” said Ferry.
Some of them will be present in 2023, namely the Omotesando Lifestyle Mall (Embarcadero) in Bintaro Tangerang which is managed by PT Lippo Karawaci Tbk. (LPKR), Bintaro Xchange 2 in Bintaro by Bintaro Jaya, and Pakuwon Mall Bekasi in Bekasi by Pakuwon Group.
In 2024, it is planned that some malls outside the Jakarta area will be completed, namely Aeon Mall Deltamas in Cikarang, Bekasi which is worked on by AEON & Deltamas and Cibinong City Mall 2 in Bogor which is worked on by Puri Wahid Pratama.
Then, in terms of rental prices throughout 2022 there will be no change, both in Jakarta and Bogor, Depok, Tangerang, and Bekasi (Bodetabek). Although, there was a slight correction due to additional supply in Bodetabek.
Until the end of 2022, the rental rate in Jakarta is IDR 566,095 per square meter. For Bodetabek, the rental rate is IDR 380,961 per square meter. This rate does not include maintenance costs in Jakarta of IDR 149,166 and Bodetabek IDR 118,166 per square meter.
Even though shopping centers are starting to get crowded with visitors, some malls in Jakarta are still empty and there are tenants.
Some malls that seem deserted include Plaza Semanggi, Ratu Plaza, and Blok M Mall.
Overall, malls in Jakarta will receive a stimulus with no additional supply throughout 2022 due to limited land in Jakarta.