Real Estate Sector in Jakarta Shows Mixed Trends in Q1 2024

Jakarta Condominium Market Continues to Grow, New Residential Trend? (photo:
Jakarta Condominium Market Continues to Grow, New Residential Trend? (photo: Narciso Arellano - Unsplash)

The real estate and housing sector in Jakarta is experiencing both stability and growth in the first quarter of 2024. This period has witnessed a diverse demand, with some areas seeing an increase while others facing a decline. Let’s delve into five key commercial real estate activities in Jakarta.

Summarized from CNBC Indonesia news, according to a report from Cushman & Wakefield, the Central Business District (CBD) office category didn’t see any new projects entering the market during Q1 2024. Existing projects are in the final stages of development, reflecting a stable phase in this segment.

Meanwhile, residential demand has shown an average increase towards the end of March 2024, rising by 2.7% annually to reach 73.5%. Rental prices have also surged by 4.5% annually amid the weakening of the Indonesian Rupiah against the US Dollar.

In the retail sector, demand growth has reached 2.9% annually, resulting in a cumulative demand of 3,702,900 square meters. The average occupancy rate stands at 79.1%, showing a slight increase both annually and quarter on quarter.

International brands like Goldfield & Banks, ALO, Ebiga Jjamppong, Cat & the Fiddle, and Tanyu Grilled Fish have added vibrancy to the retail scene, especially during Ramadan 2024.

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However, there has been a slight increase in average service charges by 2.9% annually, reaching Rp195,900 per square meter per month.

In the condominium sector, the market has remained stable with no new launches. Sales rates have also stayed relatively consistent at 93.8%, showing a slight annual increase of 0.6%.

Although there has been a modest increase in average condominium prices by 0.6% quarter on quarter and 2.3% annually, reaching Rp48,500,000 per square meter.

The CBD area recorded a 2.4% annual increase, while prime locations experienced a 1.2% annual increase. On the other hand, secondary areas showed more significant growth with prices rising by 3.9% annually.

For rental apartments, there has been a slight increase in occupancy rates by 1.4% quarter on quarter and 4.4% annually. However, service apartments witnessed a decrease in demand after the holiday period in Q4 2023.

The industrial sector saw new supply additions with the expansion of Jababeka 9, adding 60 hectares of industrial land. This has led to an increase in warehouse space, reaching 2.76 million square meters in Jabodetabek.

Overall, while Jakarta’s real estate sector shows stability in some areas, others are experiencing growth. These trends reflect the dynamic nature of the market and the diverse demands of consumers and businesses alike.