JAKARTA RETAIL Q2 2024
SUPPLY: STABLE WITH NO NEW PROJECT ENTERING THE MARKET
No new supply was observed during the second quarter of 2024. The cumulative supply remained stable at 4,719,500 sqm (0.3% YoY and 0.0% QoQ). At the same time, renovations with primary focus of improving the interior and adjusting the tenancy mix to enhance the shopping experience for customers, are being carried out in several shopping malls such as Epicentrum Walk, Plaza Semanggi, and Plaza Festival.
Five shopping mall developments are expected to unfold by the end of this year and early 2025: Lippo Mall East Side at Holland Village, Agora Lifestyle Centre at Thamrin Nine, Mall Menara Jakarta, Cornerstone – Antasari Place and Annajon at The Sima Retail and will bring a 2.53% increase in the cumulative supply in the next 12 months.
DEMAND: SLIGHT DECREASE IN DEMAND
Compared to the previous quarter, demand saw a slight decrease (-0.2%), leading to a total cumulative demand of 3,727,800 sqm, despite a 2.6% YoY increase. Consequently, there was also a slight decline in the average occupancy rate to 79.0% (2.3% YoY and -0.2% QoQ). Some new tenants’ openings, with F&B and fashion brands taking the lead, however, are seen during the review quarter. Bacha Coffee has opened its first store in Indonesia at Plaza Senayan.
The other F&B new entries are FOGO and Haidilao at Emporium Pluit Mall, and Baia Nonna at Kota Kasablanka. Meanwhile, fashion brands such as Tommy Hilfiger, Calvin Klein and Forever New has opened their new stores at Gandaria City as well as Sports Direct at Plaza Senayan and New Balance at Emporium Pluit Mall.
International brands, particularly those originating from South Korea, continue to increase their presence in Indonesia. Aland, a South Korean fashion brand, launched its store at Central Park Mall in this quarter. In the preceding quarters, ADLV and MLB had also expanded to Indonesia with the opening of their first stores at PIK Avenue and Pondok Indah Mall.
Concurrently, several stores are currently undergoing interior renovations, with the most notable being Louis Vuitton at Plaza Indonesia, unveiling a fresh look for its flagship store.
PRICING: MARGINAL INCREASE IN BASE RENT WITH STABLE SERVICE CHARGE
A slight increase in average base rental to Rp 815,400 /m2 /month (0.9% YoY and 0.9% QoQ) was observed during the review quarter. Meanwhile, there was no increase in average service charge, which remained at Rp 195,900 /m2 /month (2.9% YoY and 0.0% QoQ).
GREATER JAKARTA RETAIL H1 2024
SUPPLY: ADDITIONAL SUPPLY FROM TWO NEW MALLS IN BEKASI AND BOGOR
During the first half of 2024, the Debotabek area saw the addition of two new retail centers, namely Living Word Kota Wisata in Bogor and AEON Mall Deltamas in Bekasi. The opening of these two malls have added 166,000 sqm of retail space to the market. On YoY basis, cumulative supply increased by 8.8%, with total supply standing at 2,976,900 sqm.
