Marketbeat Reports, Q4 2023

Entertainment tenants, which includes arcade and playground for children and adults, also expand extensively with the opening of new outlets. Superpark, a thematic playground from Finland, opened its first playground in Pondok Indah Mall – Street Gallery. Skorz, a sportainment playground, made an entrance in FX Sudirman, and Playtopia opened their new outlets in Senayan Park and Emporium Mall Pluit.

Pricing: Stable Rental Rates and Rising Service Charge

Rental rate remained stable during the review quarter, standing at Rp 808,500/sqm/month. Nevertheless, there was an increase in the average service charge to Rp194,300/sqm/month which reflected a 2% YoY increase. The stable rental rates and increase in service charge, may indicate a balanced strategy by landlords to retain tenants and at the same time, maintain revenue streams in response to the operation cost inflation.

Debotabek Retail H2 2023

Supply: Two New Malls in Tangerang Commenced Operation in the Last Semester of 2023

At the end of 2023, the Debotabek area saw the addition of two new retail centers in Tangerang, namely Indonesia Design District and Bintaro Xchange 2. The opening of these two malls have added 73,600 sqm of retail space to the market, marking the total full year new supply in the Debotabek area at 137,800 sqm with five projects completed throughout the year.

On YoY basis, cumulative supply increased by 5.2% and the total supply of retail space stood at 2,819,900 sqm.

In 2024, seven new malls are anticipated in the Bogor, Tangerang, and Bekasi areas. These projects, including AEON Mall Deltamas, Living World Kota Wisata, Living World Grand Wisata, Hampton Square, Eastvara Mall, Markt Lane Sentul, and Mall at Little Tokyo Jababeka, are poised to contribute about 323,100 sqm of retail space to the Greater Jakarta market.

If all these upcoming centers adhere to their timelines, the cumulative retail space in the Debotabek region is projected to reach 3,134,000 sqm by the end of 2024.

In addition to the usual retail centers, the outskirts of Greater Jakarta have seen the introduction of two new outlet malls, namely Summarecon Villaggio Outlets and The Grand Outlet in Karawang, this year. Looking ahead, Jakarta Premium Outlet is scheduled to open in Alam Sutera in 2024.

Demand: Post-Pandemic Stability and Rising Demand for Immersive Entertainment in Debotabek

Occupancy rate of the retail market in Debotabek area stood at 73.3% as of the end of 2023, reflecting a 3.6% year-on-year decrease, and is expected to face continued pressure due to the influx of upcoming supply in the next quarters.

Shifting shopper preferences towards experiential malls underscore the growing demand for immersive entertainment, particularly for kids and families, highlighting the necessity to expand such facility. Notably, during the holiday season, certain malls experience a significant surge in foot traffic and are anticipated to maintain a more stable flow of visitor post-pandemic in 2024.

The Debotabek region continues to be a thriving market for both international and local retailers. Tangerang area welcome the first store of Sephora and Lacoste in AEON Mall BSD and IUIGA in Supermal Karawaci during the review semester. AEON Store marked its presence outside AEON Mall at Mall @ Alam Sutera.

The entertainment sector flourished in the second half of 2023 with the openings of entertainment tenants such as Playtopia Adventure in Margo City, Timezone in Summarecon Mall Bekasi, Kidzlandia in Grand Metropolitan Mall Bekasi, and the first Singapore- originated arcade brand, Cow Play Cow Moo, at Carstensz Mall.

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