H2 2011

APRIL 2012 1
Cushman & Wakefield, Indonesia
Indonesia Stock Exchange Building 2, 15/F
Jl. Jend. Sudirman Kav. 52-53, Jakarta, 12190
www.cushmanwakefield.com
BUSINESS BRIEFING
LANDED RESIDENTIAL MARKET

GREATER JAKARTA/INDONESIA
A Cushman & Wakefield Research Publication



Bubu Giri - Through The Fire @ Most ly Jazz 040412 [HD].mp4
Bubu Giri - Through The Fire @ Most ly Jazz 040412 [HD](1).mp4
Bubu Giri - Over The Rainbow @ Mostly Jazz 040412 [HD].mp4
Bubu Giri - Michael Jackson Medley @ Most ly Jazz 040412 [HD].mp4
Bubu Giri - Rolling in t he Deep @ Mostly Jazz 040412 [HD].mp4




2011 MARKED AN OUTSTANDING PERFORMANCE
Declining mortgage rate and economic stability continued in H2 2011
Having accomplished a remarkable sales performance in
the 1
st
half of 2011, the good story continued until end
of the year. The euro-zone crisis in 2011, which was
anticipated to spread the effect to Indonesias overall
property market, didnt cause any negative influences
to landed residential market in Greater Jakarta area. In
contrast, national economic stability had triggered both
developers and consumers to be more passionate in
performing sales activities. From low to upper segment
residential estates were actively hunted by end-users
and investors.
Sales activities in Ramadhan month in H2 2011, during
June July 2011, experienced slower growth in terms of
supply and demand. People held their buying decision
temporarily and developers preferred to launch their new
housing units after Ramadhan. Meanwhile, developers
vigorously offered attractive year-end promotions that
fruitfully attracted prospective buyers. Thus, despite the
slower sales activities during Ramadhan, overall sales
performance in Greater Jakarta landed residential market
in the 2
nd
half of 2011 was better than that in the 1
st
half of
2011.





2
A Cushman & Wakefield Research Publication
INTRODUCTION
Cushman & Wakefields landed residential market analysis is focused on actively
marketed estates located within Greater Jakarta. Furthermore, those selected estates
are considered as major developments. Estates specializing in Healthy Simple Housing
(Rumah Sederhana Sehat/ RSH) are excluded from the analysis.
Our market area coverage includes (1) North Jakarta; (2) Central Jakarta; (3) East
Jakarta; (4) West Jakarta; (5) South Jakarta; (6) Bekasi Municipality; (7) Bekasi Regency;
(8) Tangerang Municipality; (9) South Tangerang Municipality; (10) Tangerang Regency;
(11) Depok Municipality; (12) Bogor Municipality; and (13) Bogor Regency.
PICTURE 1: MARKET AREA COVERAGE


Classification of housing segment was based on sales price per unit as follows:
TABLE 1: HOUSING MARKET SEGMENTATION
HOUSE SEGMENT

UNIT PRICE PER UNIT
(RP.)
Lower
(LO)
100 million to 250 million
Lower Middle
(LM)
251 million to 450 million
Middle (MI) 451 million to 750 million
Upper Middle
(UM)
751 million to 1 billion
Upper
(UP)
> 1 billion
























1
3

4

5

6

7

8

LEGEND

(1) North Jakarta;
(2) Central Jakarta;
(3) East Jakarta;
(4) West Jakarta;
(5) South Jakarta;
(6) Bekasi Municipality;
(7) Bekasi Regency;
(8) Tangerang Municipality;
(9) South Tangerang Municipality;
(10) Tangerang Regency;
(11) Depok Municipality;
(12) Bogor Municipality; and
(13) Bogor Regency.

2
9

10
11
12
13
Source: Cushman & Wakefield Indonesia Research, 2012
Source: Cushman & Wakefield Indonesia Research, 2012



3
A Cushman & Wakefield Research Publication
GREATER JAKARTA
LANDED RESIDENTIAL
H2 2011
DEMAND AND OCCUPANCY
As population keeps growing over time and housing is a primary need, demand for
landed residential continues to increase. National economic stability and decreasing
mortgage rate were the supporting factors during H2 2011 which had successfully
improved the purchasing motivation of the prospective consumers.
Positive growths in sales rate on both semester and yearly basis were observed in all
areas by end of H2 2011. This indicated that demand growth of landed residential was
higher than supply growth during review semester. There were several cases where a
cluster launched and sold out shortly on the launch day, in some prominent residential
estates proving that trusted developers, easy access to location of activity and
comprehensive infrastructures and facilities were main considerations in the buying
decision.
The average monthly take-up unit per estate in each area in the Greater Jakarta area
was recorded at Rp. 150.3 billion as of the 2
nd
half of 2011, a 24.8% HoH growth and
45.3% YoY growth. This significant growth was due to sales price appreciation in H2
2011.
Residential estates in Bekasi had the highest sales value growth in H2 2011 of 86.7%
which was triggered by the active development of infrastructures and launching of new
products.
A slight increase in average monthly take-up unit was observed during H2 2011 in the
overall Greater Jakarta landed residential market at 0.3 units. Conversely, a drop of 5.1
units was recorded on YoY basis. Jakarta and Tangerang contributed to the negative
HoH and YoY growths.
Occupancy rate dropped slightly by 1.0% from in the previous semester to 82.6% by
end of H2 2011. By area, residential estates in Bekasi had the highest occupancy rate of
86.7%, followed by Tangerang at 85.2%. In contrast, the average occupancy rate in
Bogor-Depok area was still below 80%, at approximately 68.1%.
TABLE 2: SALES PERFORMANCE AND OCCUPANCY RATE

JAKARTA TANGERANG BOGOR-DEPOK BEKASI
GREATER
JAKARTA
AVERAGE MONTHLY TAKE UP (UNIT NO.)
2H 2010 8.8 53.2 56.9 66.7 185.6
1H 2011 8.6 56.8 52.5 62.3 180.2
2H 2011 8.3 52.4 55.6 64.2 180.5
HoH Change -0.3 -4.4 3.1 1.9 0.3
YoY Change -0.5 -0.8 -1.2 -2.5 -5.1
AVERAGE MONTHLY TAKE UP (VALUE IN RP. BILLION)
2H 2010 9.8 42.6 17.4 33.7 103.4
1H 2011 8.5 58.9 19.6 33.4 120.4
2H 2011 8.4 59.1 23.0 62.3 152.9
HoH Change 0.0 0.2 3.4 29.0 32.5
YoY Change -1.3 16.5 5.6 28.6 49.4










Average Sales Rate in
Greater Jakarta








88.3% 90.1%
2010 2011
Average Sales Rate in Greater Jakarta



4
A Cushman & Wakefield Research Publication
SALES RATE
2H 2010 79.2% 93.9% 79.1% 87.9% 88.3%
1H 2011 79.9% 94.4% 82.7% 88.3% 89.4%
2H 2011 80.9% 94.6% 83.6% 89.7% 90.1%
HoH Change 1.0% 0.2% 1.0% 1.5% 0.8%
YoY Change 1.6% 0.7% 4.5% 1.8% 1.8%
OCCUPANCY RATE
2H 2010 81.3% 83.3% 66.9% 86.9% 81.6%
1H 2011 80.1% 86.2% 68.8% 87.0% 83.3%
2H 2011 80.3% 85.2% 68.1% 86.7% 82.6%
HoH Change 0.2% -1.0% -0.7% -0.2% -0.7%
YoY Change -1.0% 0.9% 1.2% -0.1% 1.0%

Chart 1 details average monthly take-up unit and value during H2 2011 in the Greater
Jakarta area.
CHART 1: AVERAGE MONTHLY TAKE-UP


BEST SELLING UNITS
The majority of transactions during the review semester occurred in the upper segment
units at 40%. The most sought after units ranged from Rp. 1.1 bio to Rp. 2.5 bio with
building size of approximately 126 sqm to 245 sqm.
More than half of sold units during H2 2011 in Tangerang occurred in the upper
segment units, contributed mostly by several prominent residential estates in Serpong
area. Similar to in Tangerang, most of sales transaction in Jakarta and Bekasi were in
upper class segment at 37% and 29%, respectively. On the contrary, lower-middle





















9

5
3

5
7

6
7

1
8
6

9

5
7

5
3

6
2

1
8
0

8

5
2

5
6

6
4

1
8
1

-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
-
20
40
60
80
100
120
140
160
180
200
Jakarta Tangerang Bogor-Depok Bekasi Greater Jakarta
T
a
k
e
-
U
p

V
a
l
u
e
/

M
o
n
t
h

(
R
p
.

B
i
l
l
i
o
n
)
T
a
k
e
-
U
p

U
n
i
t
/

M
o
n
t
h

(
u
n
i
t
)
Unit 2H 2010 Unit 1H 2011 Unit 2H 2011
Rp. 2H 2010 Rp. 1H 2011 Rp. 2H 2011
Occupiers at 84.3%
Source: Cushman & Wakefield Indonesia Research, 2012
Source: Cushman & Wakefield Indonesia Research, 2012



5
A Cushman & Wakefield Research Publication
GREATER JAKARTA
LANDED RESIDENTIAL
H2 2011
segment dominated sales in Bogor-Depok area, at 25%.
Overall, lower segment housing units experienced the lowest sales composition during
H2 2011 of the total transacted units, at 7%. The best selling unit type in this segment
was type 21 at price of below Rp. 100 mio per unit, at about Rp. 68 mio.

CHART 2: SALES COMPOSITION DURING H2 2011


TABLE 3: BEST SELLING UNIT TYPES
HOUSE SEGMENT UNIT PRICE (RP. MILLION)
MOST FAVORITE UNIT SIZE (SQM)
BUILDING LAND
Lower 68 to 200 21 to 45 72 to 90
Lower Middle 315 to 338 45 to 56 105 to 120
Middle 500 to 588 55 to 96 62 to 120
Upper Middle 785 to 1,000 99 to 103 119 to 126
Upper 1,100 to 2,500 126 to 245 120 to 219

METHOD OF PAYMENT
The continued declining mortgage rate made it the most preferred method of payment
in all housing segments, used by 72% of buyers in lower segment, 83% in lower-middle
segment, 56% in middle and upper segment and 48% in upper-middle segment,
respectively. Several residential estates cooperated with banks in offering special
interest rate for mortgage, which have pushed desire to buy houses during H2 2011.












Upper-segment dominated
at 40% of overall sales
composition in Greater
Jakarta landed residential
market in H2 2011.









1%
17%
11%
7%
1%
5%
25%
10%
10%
26%
11%
24%
24%
18%
36%
28%
18%
26%
26%
37%
56%
16%
29%
40%
Jakarta Tangerang Bogor-Depok Bekasi Greater Jakarta
Lower Lower-Middle Middle Upper-Middle Upper
Source: Cushman & Wakefield Indonesia Research, 2012
Source: Cushman & Wakefield Indonesia Research, 2012



6
A Cushman & Wakefield Research Publication
CHART 3: PREFERRED METHOD OF PAYMENT


SUPPLY
Grew by 31.5% during H2 2011, the total planned area of Greater Jakarta landed
residential was recorded at about 50,748 ha. Two new residential estates were
observed to have entered the market during review semester, namely Sentul Nirwana in
Jonggol-Bogor and Suvarna Padi in Pasar Kemis-Tangerang.
A total of 294,103 housing units had been launched during the 2
nd
half of 2011, reflected
a 1.5% HoH growth, the same growth as that in H1 2011, and 3.1% YoY growth. Of all
areas in Greater Jakarta, the housing units in Tangerang captured the largest proportion
at 47% of the supply. Meanwhile, Jakarta only contributed about 7%, the same as than in
the previous semester, due to limited land.
In terms of planned area, Bogor-Depok had the largest portion of planned area at
19,208 hectares and only 14.8% of them had been developed by end of 2011. On the
contrary, Jakarta which had the least planned area at 1,094 hectares had 54.2% of the
planned area developed, followed by Tangerang and Bekasi with 37.6% and 28.5%
developed area, respectively.
TABLE 4: SUMMARY OF SUPPLY DURING 2H 2011

PLANNED AREA
(HA)
DEVELOPED AREA
(HA) SUPPLY (UNITS) % SUPPLY
Jakarta 1,094 593 20,379 7%
Tangerang 17,106 6,435 136,802 47%
Bogor - Depok 19,208 2,836 59,286 20%
Bekasi 13,340 3,805 77,637 26%
Greater Jakarta 50,748 13,669 294,103 100%





Mortgage was the most
preferred method of
payment in all segments.






Housing Units Supply in
Greater Jakarta (H2 2011)



25%
6%
22% 22%
30%
3%
11%
22%
30% 14%
72%
83%
56%
48%
56%
Lower Lower Middle Middle Upper Middle Upper
HARD CASH CASH INSTALLMENT MORTGAGE
Jakarta
7%
Tanger
ang
47%
Bogor-
Depok
20%
Bekasi
26%
Source: Cushman & Wakefield Indonesia Research, 2012
Source: Cushman & Wakefield Indonesia Research, 2012



7
A Cushman & Wakefield Research Publication
GREATER JAKARTA
LANDED RESIDENTIAL
H2 2011
A list of new supply in selected residential estates in the Greater Jakarta area is
presented in Table 5.
TABLE 5: NEW SUPPLY DURING 2H 2011
ESTATE CLUSTER MAIN TARGET
TANGERANG

Alam Sutera Pelangi @ Sutera Sitara UP
Bintaro Jaya Discovery Fiore UP
BSD City
The Anthea MI
Nittaya @ Avani MI to UP
Aleeka @ Avani UP
de Brassia @ de Park UP
Citra Raya
Graha Pratama Villa Verde LO
Blossomville Green Point LO to LM
Park View Residence LM to UM
Lagoon Ville MI to UM
Water Point UM
Kota Modern
Grand Golf I & IV UP
The Golf Residence UP
Paramount Serpong Lavender UM
Summarecon Serpong
Scarlett (residential lots) UP
Starling UM to UP
Suvarna Padi
Akasia MI to UP
Cempaka MI to UP
JAKARTA

Citra Garden City The Edelweiss UP
Jakarta Garden City Zebrina (Cluster B) UP
BEKASI

Lippo Cikarang
Oakwood Phase 2 UP
Florencia Phase 3 UM
Summarecon Bekasi
Lotus Lakeside Residences Phase 1 UM to UP
Lotus Lakeside Residences Phase 2 UP
Lotus Lakeside Residences Phase 3 UP
Magnolia Residences Phase 1 MI to UP
Magnolia Residences Phase 2 MI to UP
Magnolia Residences Phase 3 UM to UP











Sentul Nirwana and Suvarna
Padi residential estates
entered Greater Jakarta
landed residential market in
H2 2011.











8
A Cushman & Wakefield Research Publication
BOGOR

Bogor Nirwana Residence Harmony Boulevard (Phase 2) UP
Citra Gran Lake at The Dense MI to UM
Citra Indah Bukit Gladiola LM to MI
Harvest City Quince Blossom (Phase 1) LO
Kota Wisata
Coatesville Phase 2 MI to UP
West Covina Phase 2 MI to UP
Sentul City The Green Design UP
Sentul Nirwana
The Atmosphere UM to UP
The Breeze LM to MI
The Wind MI
Telaga Golf Sawangan Scotland LM

SALES PRICE, LAND PRICE AND CONSTRUCTION COST
Average sales price increment during H2 2011 was observed at 13%, whilst increases in
construction cost and land price stood at 6% and 21%, respectively.
Of all areas in Greater Jakarta, Bekasi recorded the highest land price and sales price
appreciation at 33% and 19% by end of H2 2011, as the result of significant
infrastructure improvements in residential estates in Bekasi that would directly connect
main Jakarta-Cikampek toll road and the residential estates.
TABLE 6: SALES PRICE AND CONSTRUCTION COST INCREASE DURING H2
2011 (HoH)

AVERAGE INCREASE IN
SALES PRICE CONSTRUCTION COST LAND PRICE
Jakarta 12% 7% 16%
Tangerang 8% 4% 13%
Bogor - Depok 11% 8% 15%
Bekasi 19% 4% 33%
Greater Jakarta 13% 6% 21%












Continued positive growth
in sales price, construction
cost and land price











Source: Cushman & Wakefield Indonesia Research, 2012
Source: Cushman & Wakefield Indonesia Research, 2012



9
A Cushman & Wakefield Research Publication
GREATER JAKARTA
LANDED RESIDENTIAL
H2 2011
Land prices in selected estates as of the 2
nd
half of 2011 were shown in Table 6 as
follows
TABLE 6: LAND PRICES IN SELECTED ESTATES
AREA ESTATE
LAND PRICE PER SQM
(RP. MILLION)
TANGERANG Alam Sutera 5 to 9
Bintaro Jaya 4.6 to 7
BSD City 3.5 to 8
Citra Raya 1.2 to 3.5
Lippo Village 3.5 to 17
Paramount Serpong 4 to 5
Kota Modern 3.2 to 6
Summarecon Serpong 4 to 10
Suvarna Padi 1.6 to 2.5
JAKARTA Metland Menteng 4.2 (avg)
Jatinegara Baru 4 to 5
Jatinegara Indah 3.2 (avg)
Jakarta Garden City 4 to 7
Citra Garden City 4 to 6
BEKASI Grand Wisata 2.5 (avg)
Kota Deltamas 1.3 (avg)
Kota Harapan Indah 4 (avg)
Kota Jababeka 3 (avg)
Lippo Cikarang 2 to 3.6
Summarecon Bekasi 2.6 to 4
BOGOR-DEPOK Bogor Nirwana Residence 2.4 to 4.4
Bukit Golf Riverside 1.6 (avg)
Citra Gran 2.8 to 3.2
Citra Indah 0.5 to 0.8
Harvest City 0.9 to 1.5
Kota Wisata 2.5 to 3
Sentul City 2.3 to 3.8
Sentul Nirwana 2.2 to 3
Telaga Golf Sawangan 0.9 to 1.6


























Source: Cushman & Wakefield Indonesia Research, 2012



10
A Cushman & Wakefield Research Publication








For more information about
C&W Research, contact:

Arief Rahardjo
Head of Research & Advisory
PT. Cushman & Wakefield Indonesia
+(62 21) 2550 9540
arief.rahardjo@ap.cushwake.com


Runita Kesumaramdhani
Analyst of Research & Advisory
PT. Cushman & Wakefield Indonesia
+(62 21) 2550 9546
runita.kesuma@ap.cushwake.com


Cushman & Wakefield (C&W) is known the world-over as an industry knowledge leader. Through the delivery of timely,
accurate, high-quality research reports on the leading trends, markets around the world and business issues of the day, we aim to
assist our clients in making property decisions that meet their objectives and enhance their competitive position.

In addition to producing regular reports such as global rankings and local quarterly updates available on a regular basis, C&W also
provides customized studies to meet specific information needs of owners, occupiers and investors.

C&W is the worlds largest privately-held commercial real estate services firm. Founded in 1917, it has 230 offices in 60 countries
and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500
companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and
landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment
management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large
corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory,
including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in
various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary
reports available on its online Knowledge Center at:
www.cushmanwakefield.com

This report has been prepared solely for information purposes. It does not purport to be a complete description of the markets
or developments contained in this material. The information on which this report is based has been obtained from sources we
believe to be reliable, but we have not independently verified such information and we do not guarantee that the information is
accurate or complete. Published by Corporate Communications.

2012 Cushman & Wakefield, Inc. All rights reserved.
Cushman & Wakefield, Indonesia
Indonesia Stock Exchange Building 2, 15/F
Jl. Jend. Sudirman Kav. 52-53, Jakarta, 12190

www.cushmanwakefield.com

MARKET OUTLOOK
2012 is projected to be a vigilant year for both developers and buyers. As several
planned national policies planned effectively applied in 2012, such as the planned oil
price increment in Q2 2012, the implementation of maximum loan to value at 70% of
sales price for housing mortgage as regulated by Bank Indonesia and the obligations of
developers to report every transaction above Rp. 500 million to Indonesian Financial
Transaction Reports and Analysis Centre to avoid money laundering. Therefore, sales
activity in 2012 will potentially be slower than that in 2011.
However, developers will still actively launch several new products and continue
developing infrastructures and facilities. Construction cost will continue to increase in
anticipation of the plan of oil price increment in 2012. Sales value in 2012 is foreseen to
experience a modest positive growth.