Marketbeat Reports, Q4 2023

Additionally, Bintaro Xchange 2 unveiled the BXSea Bintaro Oceanarium, adding a captivating new destination for families. Expanding its footprint after Jakarta, Flying Tiger Copenhagen extends its existence in Supermal Karawaci and AEON Mall BSD.

Pricing: Rental Rate and Service Charge Increment Monitored

In 2023, the Debotabek retail market exhibited modest growth of base rent and service charge, with 1.9% increase in base rent, reaching Rp460,600/sqm/mo at the end of 2023. The highest base rent increment was observed in the Tangerang area at 3.8% year-on-year growth.

Meanwhile, the overall service charge in the Debotabek area experienced a 1.3% increase, signaling a significant shift after nearly four years of stagnant growth. With expected steady footfall, rents and service charges of prime retail centers in Debotabek area are poised for further growth in the upcoming quarters.

Condominium Q4 2023

Supply: Subdued Supply Until H2 2024

Five projects were completed during the last quarter of 2023, adding 3,834 units of new supply and bringing the total cumulative supply of condominiums in Greater Jakarta to 384,330 units (1% QoQ, 4% YoY).

The total YTD new supply delivery of 14,664 units was 35% below YTD supply in the corresponding period last year. Most of the completed projects are in Tangerang of Lower- Middle and Middle segments.

Meanwhile, there was no new supply released onto the market during the review quarter. The total number of units introduced in 2023 was 2,355, which is a 33% decline from the the 3,523 units launched in 2022.

Supply levels are expected to stay subdue until the second semester of 2024 due to the upcoming Presidential Election and Idul Fitri in the first semester, during which buyers typically defer their purchasing decisions.

Demand: Softened Condominium Sales, While Leasing Activity Remained Robust

The overall net take-up rate for both existing and proposed condominiums until the end of 2023 remained soft, experiencing a 24% decrease compared to the total units absorbed in 2022. Additionally, approaching the presidential election in early 2024, some buyers adopt a “waitand- see” position in their investment decisions, including in the purchase of condominium.

As a result of the limited new supply, the cumulative condominium sales rate slightly increase from 93.4% in 2022 to 93.8% in 2023, representing a 0.4% year-over-year growth, while the pre-sales rate declined by 2.4%, dropping from 60.3% in 2022 to 58.9%. The highest sales rates continued to be dominated by lowermiddle to middle segments.

In contrast to sales figures, leasing of condominium in the Greater Jakarta remains notably active, as shown by a steady uptrend in occupancy rates to 59.2%, a growth of 0.6% from the previous quarter and 4.6% YoY, reaching its highest level since the onset of the pandemic

Pricing: Price Fluctuation Remained Modest

The overall condominium sales prices in the Greater Jakarta exhibited a 3.7% YoY increase. Specifically, condominiums the CBD area recorded a 3% YoY increase with no price change QoQ.

Prime areas experienced a 3.3% YoY increase and a modest 0.2% QoQ uptick in sales prices, while Secondary areas demonstrated a more substantial 5.2% YoY growth and a 0.6% QoQ increase. In response to market conditions, many developers have proactively adopted strategies such as offering discounts, incentives, and flexible payment terms to attract potential buyers and stimulate sales.

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