Marketbeat Reports, Q4 2023

Rental Apartment Q4 2023

Supply: Delayed Operation of Some Serviced Apartments to 2024

No new supplies from Purposed Built and Serviced Apartment projects were recorded during the fourth quarter of 2023 as multiple projects that were scheduled to open in the fourth quarter of 2023 were postponed to 2024.

The total supply of rental apartments stood at 188,128 units at the end of Q4 2023, a minor increase of +1.6% QoQ & +4.1% YoY. Most of the new supply continued to come from condominium-for-lease projects, accounting for 3,043 units with the completion of Cinere Terrace Suites (The Cloud), Tokyo Riverside (Tower Ishikawa), Mahata Tanjung Barat (Prasada Tower 1), Cisauk Point (Tower Sapphire) and Mahata Serpong (Tower Cattleya).

Demand: Brief Peak During Holiday Season

As of the end of 2023, the average occupancy rate stood at 55.1%, increased slightly by +0.4% QoQ or +4.7% YoY. Improvement in the demand for serviced apartments from short-stay visitors during the Christmas and New Year holidays was observed during the review quarter, increasing the sub-sector’s average occupancy rate to 66.0%, up +1.1% QoQ or +3.5% YoY.

Some properties that allow for daily stays saw a brief peak in occupancy, with Purpose-Built Rental Apartments saw the largest rise in occupancy at +1.5% QoQ or 4.7% YoY, reaching 62.3%. The overall rental apartment market is on the track for recovery, even though at relatively slow pace.

Pricing: Rental Rate Remains Relatively Stable

The average rental rate of the whole rental apartment market declined by -0.9% QoQ, but rose by +3.1% YoY, standing at Rp. 257,985 per sqm per month. The average rental rate of condominium- for-lease sub-sector fell by -3.7% QoQ, but +5.3% YoY to Rp. 164,045 per sqm per month with owners remained offering attractive rental in response to the competitive market.

Rental rates of Serviced Apartment and Purpose-Built sub-sectors remained relatively stable with changes of only -0.1% QoQ and +2.5% YoY and 0.0% QoQ and 0.2% YoY respectively. Price adjustments are projected to commence in 2024, in response to the improved demand and inflation rate.

Industrial Q4 2023

Supply: No New Industrial Land Supply and Warehouse Market Remains Attractive

There was no addition to the current industrial land supply in Greater Jakarta during the fourth quarter 2023, and cumulative supply stood at 16,568 hectares. Future supplies in the coming quarters are expected to come from the industrial estates in the eastern part of Jakarta.

During the review quarter, four additional warehouse projects, all in Bekasi area, totaling at an estimated of 110,000 square meters were added to the market., bringing the total cumulative warehouse for lease supply in the Greater Jakarta area to 2.66 million sqm.

Demand: Demand for Industrial Land Gradually Increased Whereas Occupancy Rate of Warehouses Remains Stable

A total of 72.9 hectares of Industrial land was transacted in the fourth quarter of 2023, reflecting an increase of about 38.4% from that in the last quarter, with Data Center represented the largest share, making up 52% of the transactions, followed by Building Material by 7.7%, textile of 6.4%, packaging of 5.5% and various other sectors like warehouse, labelling and others, absorbed the remaining demand.

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