The first quarter of 2025 has presented a nuanced landscape for Jakarta’s real estate market, characterized by stability in supply across various sectors, subtle shifts in demand, and moderate price adjustments. This period reflects a market in equilibrium, with stakeholders adapting to evolving economic conditions and consumer preferences.
Office Sector: CBD Stability Amidst Relocation Trends
Supply: The Central Business District (CBD) of Jakarta maintained its total office stock at approximately 7.4 million square meters, with no new completions recorded during the quarter. Projections indicate that this figure will remain unchanged through the end of 2025, suggesting a period of supply stabilization.
Demand: Leasing activity persisted, albeit at a moderated pace, primarily driven by tenants seeking relocation opportunities. Notably, two significant transactions totaling 8,500 square meters were executed, underscoring the market’s resilience. Net absorption reached 31,400 square meters, with Class A offices accounting for 88% of this uptake. Consequently, the overall occupancy rate in the CBD experienced a slight uptick of 0.4%, settling at 75.6% by the end of March.
Pricing: Rental rates denominated in Indonesian Rupiah exhibited modest growth, with base rents and service charges increasing by 0.8% and 0.9% respectively. The average gross rent stood at IDR 266,500 per square meter per month. Conversely, when assessed in U.S. dollars, rents declined by 2.3%, primarily due to a 2.6% quarter-on-quarter depreciation of the Rupiah.(assets.cushmanwakefield.com)
Retail Sector: Modernization and Luxury Retail Momentum
Supply: The retail landscape saw no new supply additions, maintaining the cumulative stock at 4.8 million square meters. However, the completion of renovations at Lippo Mall Nusantara (formerly Plaza Semanggi) and Epicentrum Walk introduced refreshed retail environments. Looking ahead, several projects totaling 109,400 square meters are slated for completion within the year, indicating a forthcoming expansion in retail space.
Demand: Occupancy levels experienced a marginal decline of 0.8% quarter-on-quarter, bringing the rate to 77.1%. This dip is attributed to the recent influx of renovated spaces. Nonetheless, the market witnessed the entry of both local and international retailers, including notable brands such as Christy Ng, Rud Runner, Hologram Zoo, Sunnytep, Dickies, Hermès, Loewe, and Jimmy Choo, reflecting sustained confidence in Jakarta’s retail sector.
Pricing: Average base rents increased by 2.3% year-on-year to IDR 827,000 per square meter per month, while service charges saw a modest rise of 1.1% year-on-year, reaching IDR 198,000 per square meter per month.
Condominium Sector: Steady Growth in Secondary Areas
Supply: The condominium market recorded the completion of two projects, adding 1,326 units and bringing the total supply in the Greater Jakarta area to 395,612 units. This represents a 0.34% quarter-on-quarter and 2.6% year-on-year increase. The new completions were situated in secondary areas outside Jakarta, highlighting a trend of suburban expansion.
Demand: Net absorption experienced a 21% year-on-year increase, driven predominantly by the mid-market segment, with Tangerang and South Jakarta leading in sales activity. The overall sales rate for existing condominiums improved slightly to 94.3%, while pre-sales rates for ongoing projects dipped to 59.4%, suggesting a buyer preference for ready-to-occupy units. Occupancy rates in the Greater Jakarta area rose by 9.5% year-on-year, reaching 64.5%.
Pricing: The average price per square meter increased by 3.3% year-on-year to IDR 50.1 million. Secondary areas led this growth with a 4.9% year-on-year increase, while the CBD and primary areas saw rises of 2.8% and 3.0% respectively.
