Research &

Forecast Report
Jakarta | Apartment
2Q 2014

Accelerating success.

There were 3,466 new apartment units which became available will be located adjacent to the existing development. Another
during the quarter resulting in a total of 145,390 apartment
units in DKI Jakarta. The average asking price for strata-title
apartments in Jakarta climbed by 16% YoY to IDR25.5 million
psm. Prices in the CBD were recorded at IDR39.7 million psm,
an increase of 17% YoY.

- Ferry Salanto, Associate Director | Research

Apartment Sector
Apartment for Strata Title
Supply
As of the end of June 2014, eight apartment projects with 3,466
new apartment units, have been handed over during 2Q 2014.
This quarters additional supply is largely located in South
Jakarta, both by number of apartment units and number of
projects (1,364 units at three apartment projects). Other regions,
like East Jakarta, introduced 812 new units at two apartment
projects, while the CBD, West Jakarta and Central Jakarta
contributed one project each, accounting for 37.2% of the total
units. With the additional new units mentioned above, the total
cumulative supply of strata-title apartments was 137,056 units,
an increase of 2.6% over the previous quarter.
Two upper-class projects, Kemang Village (The Intercon) and
The East at Essence Darmawangsa, are located in the expatriate
community area in South Jakarta, i.e. the Kemang and
Darmawangsa areas. The Intercon tower was the sixth tower
at the Kemang Village project being handed over, while The
East tower at Essence Darmawangsa was the last tower being
handed over after two previous towers, Eminence (in 2008) and
The South (in 2013), entered the market. Both Kemang Village
and Essence Darmawangsa are planning to launch their second
phases of development, which focus on residential projects, and

project, Pakubuwono Terrace (South Tower) project, which is

located on border of South Jakarta and Tangerang, continues to
deliver the second tower which comprises 720 units and targets
the middle-low segment. Sentra Timur Residence with Tower
Orange and The Hive Tamansari contributed as much as 10.3%
of the total stock of apartments in East Jakarta during 2Q 2014.
Perumnas (state-owned housing developer) collaborated with
Bakrieland to develop Sentra Timur Residence, which is located
near the bus terminal in Pulo Gebang, in order to accommodate
buyers of the low to middle-low segment. The Hive Tamansari,
which targeted the middle-upper segment is a mixed-use
project, located in Cawang and comprised of condotel and
apartment components.
Locations like West Jakarta, Central Jakarta, and CBD only
contributed one project each. The operation of a brand new
project in Puri Indah, The Windsor (Tower I), added an upper
segment project to West Jakarta. Verde Apartments (Tower East)
and The Green Pramuka (Tower Chrysant) are both extensions
of the existing projects located in Rasuna Said and Jl. A. Yani and
target the upper and low segments, respectively.
During this quarter, the Jakarta apartment market saw more
additional supply from newly-launched projects. There are
seven projects with a total potential stock of 2,133 units, 41% less
than last quarter. This slowing figure indicates that developers
tend to take a wait and see attitude, waiting for the results of the
presidential election.

List of Completed Projecs During 2Q 2014

development

location

region

Developer

No. of Units

Kemang Village (The Intercon)

Jl. Pangeran Antasari

South Jakarta

Lippo Karawaci

400

The East at Essence Complex Dharmawangsa

Jl. Dharmawangsa X

South Jakarta

PT. Prakarsa Semesta Alam

244

Pakubuwono Terrace (South Tower)

Jl. Kebayoran Lama

South Jakarta

PT Selaras Mitra Sejati

720

Verde Apartment (Tower East)

Jl. HR. Rasuna Said

CBD

Farpoint Realty

114

The Windsor (Tower I)

Jl. Puri Indah

West Jakarta

PT Antilope Madju Puri Indah

176

Sentra Timur Residence (Tower Orange)

Jl. Pulo Gebang

East Jakarta

Bakriland Development

390

The Hive @ Tamansari

Jl. DI Panjaitan

East Jakarta

Wika Realty

422

The Green Pramuka (Tower Chrysant)

Jl. Jenderal Ahmad Yani

Central Jakarta

PT Duta Paramindo

1,000
Total

3,466

Source: Colliers International Indonesia - Research

Newly Launched Apartments During 1Q 2014

development

location

region

no. of units

expected
completion time

asking price/SQ m
(excluding VAT)

Springhill Golf Suites

Kemayoran

Central Jakarta

450

2017

The H Residence Kemayoran (Amethyst Tower)

Kemayoran

Central Jakarta

800

2015

22,600,000
13,600,000

Ciputra International Puri Indah (Tower I)

Puri Indah

West Jakarta

412

2017

27,000,000

19 Avenue Apartment

Daan Mogot

West Jakarta

338

2015

12,800,000

Sentra Timur Residence (Tosca Tower)

Pasar Rebo

East Jakarta

133

2017

11,000,000

Bassura City (Tower Jasmine and Heleconia)

Basuki Rahmat

East Jakarta

880

2018

12,500,000

*estimated
Source: Colliers International Indonesia - Research

At the six newly launched apartment projects, there are two

on-hold projects (partly constructed), i.e. The H Residence
Kemayoran and 19 Avenue Apartment, that were acquired by
two developers. HK Realtindo took over one tower of Apartment
Menara Rajawali (Chrysant Tower) in the Kemayoran area
and continued the unfinished work. This apartment tower was
then renamed The H Residence Kemayoran (Amethyst Tower).
Similarly, a rusunami project (low cost apartment project), called
Rusunami Orchad Palace, was taken over by Margayahu Land
who changed the concept into a more commercial apartment
project and renamed the project 19 Avenue Apartments.
Springhill Golf Suites and Ciputra International Puri Indah
(Tower I) are brand new projects that target the middle to
upper segments. In Bassura City compound, Tower Jasmine
and Heleconia are the second phase of the previous six towers
thatwas old in the first phase.

At the beginning of 2014, we anticipated that a total of 20,899

new apartment units would enter the Jakarta apartment
market. Overall, during 1H 2014, some 4,712 units have entered
the market or 23% of the total units. This indicates a relatively
slow supply growth compared to the last three years, when the
average of 8,498 apartment units were added to the market in the
first semester of each year. Several projects that were previously
scheduled to open in this quarter were delayed due to a variety of
reasons. Slow finishing work due to technical problems, such as
testing the electrical and mechanical elements of the apartment
projects was most frequently reported by developers as causing
delays.

Research & Forecast Report | 2Q 2014 | Apartment | Colliers International

New Supply Pipeline (2014 - 2017)

Apartment name

location

region

no. of units

2014

Woodland Park (Matoa tower) (1Q)

Kalibata

South Jakarta

221

Pakubuwono Terrace (Tower North) (1Q)

Kebayoran Lama

South Jakarta

750

Sherwood Residence (Wellington) (1Q)

Kelapa Gading

North Jakarta

100

Kemang Village (The Infinity) (1Q)

Antasari

South Jakarta

175

Ambassade Residence Tower A

Puri Denpasar

CBD

234

Raffles Residences

Satrio

CBD

64

MyHome Apartment at Ciputra World

Satrio

CBD

136

Setiabudi Sky Garden (tower 1)

Rasuna Said

CBD

426

Verde Apartment (Tower East)

Rasuna Said

CBD

114

Pasar Baru Mansion (2 towers)

Pasar Baru

Central Jakarta

520

Elpis Residence

Gunung Sahari

Central Jakarta

791

Capitol Park Apartment

Salemba

Central Jakarta

1,700

The Mansion at Dukuh Golf Residence (Aurora Tower)

Kemayoran

Central Jakarta

522

The Mansion at Dukuh Golf Residence (BellaVista Tower)

Kemayoran

Central Jakarta

612

The Green Pramuka (Tower Chrysant)

Pramuka

Central Jakarta

1,000

The Green Pramuka (Tower Bougenville)

Pramuka

Central Jakarta

1,000

Sentra Timur Residence II (2 Towers)

Pasar Rebo

East Jakarta

810

Titanium Square

Pulo Gebang

East Jakarta

725

The Hive @ Tamansari

Cawang

East Jakarta

422

Sherwood Residence (Regent)

Kelapa Gading

North Jakarta

100

Pluit Seaview (Tower Maldives)

Pluit

North Jakarta

940

Gading Greenhill

Pegangsaan Dua

North Jakarta

700

Northern Ancol Residence

Ancol

North Jakarta

800

La Venue - South Tower

Pasar Minggu

South Jakarta

341
400

Kemang Village (The Intercon)

Antasari

South Jakarta

The East at Essense Complex Dharmawangsa

Dharmawangsa

South Jakarta

244

The Aspen at Admiralty

Fatmawati

South Jakarta

860

Pakubuwono Terrace (Tower South)

Kebayoran Lama

South Jakarta

720

The Pakubuwono Signature

Pakubuwono

South Jakarta

188

Senopati Penthouse

Senopati

South Jakarta

63

LA City Apartment (Tower A)

Lenteng Agung

South Jakarta

980

La Maison Barito

Barito

South Jakarta

80

Botanica Apartment (3 Towers)

Simprug

South Jakarta

626

The Bellevue at Pondok Indah

Pondok Indah

South Jakarta

40

Green Central Tower Cerberra

Gajah Mada

West Jakarta

420

The Windsor (Tower I)

Puri Indah

West Jakarta

176

The Windsor (Tower II)

Puri Indah

West Jakarta

164

Sky Terrace Lagoon

Kalideres

West Jakarta

525

Metro Park Residence

Kebon Jeruk

West Jakarta

1,200

Green Palm Residence @ Puri

Kosambi

West Jakarta

1,000
continued

Research & Forecast Report | 2Q 2014 | Apartment | Colliers International

Apartment name

location

region

no. of units

continuation
2015

East Park Apartment (Tower C)

KRT Radjiman

East Jakarta

The Residence (CWJ 2)

Satrio

CBD

550
119

The Orchad Satrio (CWJ 2)

Satrio

CBD

349

Setiabudi Sky Garden (tower 2)

Setiabudi

CBD

160

T - Plaza Residence (Tower B)

Pejompongan

Central Jakarta

500

Menteng Park

Cikini

Central Jakarta

756

The Grreen Pramuka (Tower Orchid)

Pramuka

Central Jakarta

1,000

The Grreen Pramuka (Tower Penelope)

Pramuka

Central Jakarta

1,000

The Green Pramuka (Tower Scarlet)

Pramuka

Central Jakarta

1,000

The H Residence Kemayoran (Amethyst)

Kemayoran

Central Jakarta

800

Green Signature Apartment

MT. Haryono

East Jakarta

800

Bassura City (Tower Flamboyan)

Basuki Rahmat

East Jakarta

1,000

Bassura City (Tower Edelweiss)

Basuki Rahmat

East Jakarta

1,000

Bassura City (Tower Dahlia)

Basuki Rahmat

East Jakarta

1,000

Bassura City (Tower Cattleya)

Basuki Rahmat

East Jakarta

600

Bassura City (Tower Alamanda)

Basuki Rahmat

East Jakarta

600

Teluk Intan (Tower Saphire)

Teluk Gong

North Jakarta

1,100

Tifolia Apartment

Perintis Kemerdekaan

East Jakarta

500

Pluit Seaview (Tower Belize)

Pluit

North Jakarta

300

Callia Apartment

Perintis Kemerdekaan

East Jakarta

560

The Oakwood Sky Garden (2 Towers)

Pluit

North Jakarta

700

Pluit Seaview (Tower Ibiza)

Pluit

North Jakarta

500

Pluit Seaview (Tower Bahama)

Pluit

North Jakarta

650

Green Bay Pluit (Sea View)

Pluit

North Jakarta

2,072

Kemang Village - The Bloomington

Antasari

South Jakarta

150

The Royal Olive Residence Tower I

Buncit Raya

South Jakarta

225

Woodland Park (Cendana Tower)

Kalibata

South Jakarta

218

Senopati Suites 2

Senopati

South Jakarta

81

1 Park Avenue

Gandaria

South Jakarta

279

Nine Residence

Warung Buncit

South Jakarta

246

Providence Park

Permata Hijau

South Jakarta

114

Kencana Residence

Pondok Indah

South Jakarta

173

District 8 (Tower Eternity)

Senopati

South Jakarta

400

District 8 (Tower Infinity)

Senopati

South Jakarta

280

Izzara Apartment (2 Tower @ 225 unit)

TB. Simatupang

South Jakarta

450

Lexington Rersidence (Tower 1)

Pondok Pinang

South Jakarta

270

Lexington Rersidence (Tower 2)

Pondok Pinang

South Jakarta

270

The Aspen Peak at Admiralty

Fatmawati

South Jakarta

644

Belmont Residence (Tower Montblanc)

Meruya Ilir

West Jakarta

350

Gianetti Apartment

Kemanggisan

West Jakarta

500

St. Moritz (New Presidential Tower)

Puri Indah

West Jakarta

150

Satu8 Residence

Kedoya

West Jakarta

174

The Nest Apartment

Meruya Utara

West Jakarta

1,100

Point 8 (Air Crew Tower)

Daan Mogot

West Jakarta

546

Gallery West

Kebon Jeruk

West Jakarta

280

19 Avenue Apartment

Daan Mogot

West Jakarta

338
continued

Research & Forecast Report | 2Q 2014 | Apartment | Colliers International

Apartment name

location

region

no. of units

continuation
2016

St Moritz (The New Ambassador Suite Tower)

Puri Indah

West Jakarta

The H Residence

MT Haryono

East Jakarta

200
383

Sudirman Suites

Sudirman

CBD

380

Senopati Suites 3

Senopati

South Jakarta

Signature Park Grande

MT Haryono

East Jakarta

Grand Pakubuwono Terrace

Kebayoran Lama

South Jakarta

Sentosa Residence

Cempaka Putih

Central Jakarta

687

Gold Coast Apartment (Atlantic Tower)

Pantai Indah Kapuk

North Jakarta

568

54
1,100
435

Grand Pancoran

Pancoran

South Jakarta

120

Sudirman Hill Residence

Karet

Central Jakarta

255
380

Apartment Pejaten Park Residence

Warung Buncit

South Jakarta

Belmont Residence (TowerAthena)

Meruya

West Jakarta

165

Four Winds

Permata Hijau

South Jakarta

122

Capitol Suites

Prapatan Raya

Central Jakarta

327

Puri Mansion Apartment (Tower A)

Puri Kembangan

West Jakarta

900

Madison Park

Tanjung Duren

West Jakarta

1,200

Gayanti City (2 Towers)

Gatot Subroto

CBD

318

Verde Two (Tower 1)

Rasuna Said

CBD

152

Verde Two (Tower 2)

Rasuna Said

CBD

152

Bellevue Place

Tebet

South Jakarta

128

Kebayoran Icon

Kebayoran Lama

South Jakarta

256

Veranda

Pesanggrahan

West Jakarta

174

Regatta London Tower

Pantai Mutiara

North Jakarta

276

Central 88 (2 Towers)

Kemayoran

Central Jakarta

612

Holland Village

Cempaka Putih

Central Jakarta

400

2017

Domaine

Sudirman

CBD

186

Skyline Residence (2 Towers)

DI Panjaitan

East Jakarta

481

Kemang Penthouse

Kemang

South Jakarta

262

The Foresque

Pasar Minggu

South Jakarta

600

Springhill Golf Suites

Kemayoran

Central Jakarta

450

Sentra Timur Residence (Tosca Tower)

Pulogebang

East Jakarta

133

Taman Anggrek Residence

Tanjung Duren

West Jakarta

3,000

Puri Orchad (3 Tower)

Kembangan

West Jakarta

3,000

The Langham Residences

Senopati

South Jakarta

Anandamaya Residences (3 towers)

Sudirman

CBD

Maqna Residence

Meruya

West Jakarta

380

Vittoria Residence (3 tower)

Daan Mogot

West Jakarta

1,100

One Otium Residence

Antasari

South Jakarta

160

Wang Residence

Kedoya

West Jakarta

250

The Batik @ Pejaten

Pejaten

South Jakarta

200

Source: Colliers International Indonesia - Research

57
500

Research & Forecast Report | 2Q 2014 | Apartment | Colliers International

Demand

Asking Price

The overall performance of the Jakarta apartment market in

2Q 2014 slowed modestly to 85.3%, down from 86.1% in the
previous quarter. The softening demand, which began in 2H
2013 still continues in this quarter. Besides the current economic
conditions and some measures from the government to curb
speculation in the property market, the upcoming presidential
election is likely have an impact by hampering buying activities
of both end users and investors. Furthermore, the continued
influx of newly launched apartments in this period, which was
not counterbalanced by good absorption, has resulted in a lower
take-up rate than in the previous quarter.

This quarter still witnessed a climb in asking prices, particularly

in prime locations, such as the CBD area and some particular
areas in South Jakarta. Overall, the average asking price of stratatitle apartments in Jakarta was IDR25.5 million psm, increasing
by 5% QoQ and 16% YoY. The softening demand that began in
3Q 2013 stimulated a rise in prices at a moderate pace compared
to the previous year, when the average asking price grew
aggressively by 13% per year.

IDR 30,000,000

The Take-Up Rates Comparison Between Existing

Projects and Future Projects
2Q 2014

QoQ change

Existing

94.3%

94.6%

0.26%

Pre-Sales Rate

72.6%

71.2%

-1.45%

Average

86.1%

85.3%

-0.81%

Source: Colliers International Indonesia - Research

Average Take-Up Rate Performance in Different

Location (%)
2Q 2013

IDR 15,000,000
IDR 10,000,000

1q 2014

2Q 2014

QoQ change

YoY change

CBD

91.3%

93.2%

94.8%

1.6%

3.5%

South Jakarta

83.1%

90.0%

89.7%

-0.3%

6.6%

Non-Prime Area

81.8%

83.3%

82.0%

-1.3%

0.2%

Source: Colliers International Indonesia - Research

With concerns about possibly slowing demand, developers

continued to attract buyers and potential investors through
exhibitions and advertising. Other than regular promotions, such
as overseas holidays, direct gadget prizes, and discounts, some
projects offered a cash back and referral fee system. All in all, the
flexibility in payment terms, such as extended instalments was
the most striking factor to accelerate sales. Another alternative
term of payment offered by some developers is providing
60-month installment payment for ready-to-use project. In
normal market practice, long-term instalment payment is only
applicable for project under construction.

IDR 5,000,000

2Q2014

1Q2014

4Q2013

3Q2013

2Q2013

1Q2013

Source: Colliers International Indonesia - Research

By location, South Jakarta recorded the highest increase of all

areas compared to the previous quarter and last years figure
in the same period by 8 and 23%, respectively. The accelerating
price that occurred in South Jakarta was largely driven by the new
projects that are located in premium areas, such as Senopati and
Pondok Indah. Projects, such as Langham Residence and Pondok
Indah Residences, which are located in the Senopati and Pondok
Indah areas, respectively, introduced initial prices beyond the
average market price due to their exclusivity and location in the
prestigious areas. These two locations are much preferred by
expatriates owing to their proximity to the international schools,
upscale shopping malls, and expatriate communities. On the
other hand, the new trend at new apartment projects is that they
are generally offered as semi-furnished units equipped with
A/C, water heater, kitchen set, and wardrobe, which raised the
overall price increases in the Non-prime area. In general, the
continuing construction activities and good sales performance
of the projects in the CBD area have resulted in an overall price
rise of 4% QoQ or 16% YoY.

The recent political situation may hamper buying activities from

both end users and investors. In fact, consistent progress of
construction activities will help boost buyer confidence in their
purchasing decisions.

4Q2012

IDR 0
3Q2012

The take-up rates vary in different sub-markets. The CBD area

still achieved the highest at 94.8%, followed by South Jakarta
and Non-prime areas with 89.7 and 82%, respectively. Limited
new apartment supply for the last few years has resulted in the
increasing absorption trend in the CBD area. Meanwhile, during
April - June, South Jakarta and Non-prime areas recorded a
downward trend, dropping modestly by around 1%.

Area

IDR 20,000,000

2Q2012

1Q 2014

IDR 25,000,000

1Q2012

take-up

Average Asking Price of Strata-title Apartment in

Jakarta

Research & Forecast Report | 2Q 2014 | Apartment | Colliers International

Apartment For Lease

Average Asking Price (in IDR) in Different Locations

Area

2Q 2013

1q 2014

2Q 2014

QoQ

YoY

change

change

CBD

33,981,607

38,282,223

39,702,373

4%

17%

South Jakarta

23,434,989

26,687,843

28,724,626

8%

23%

Non-Prime Area

16,932,956

18,819,110

19,609,236

4%

16%

Source: Colliers International Indonesia - Research

Considering that Non-prime areas and South Jakarta areas

still have a number of potential vacant lots to be developed for
residential use, we anticipate a further increase in the apartment
price in Jakarta in the coming quarters.

Supply
During the first half of 2014, we saw no new supply of apartments
for lease in Jakarta. However, the apartment market is still
expecting 630 new serviced apartment units by 2015. The new
apartment developments consist of 280 units at two projects,
Ascott Kuningan and TBS Linera Serviced Apartments, which
will be completed in (3Q or 4Q) 2014, and the remaining 350 units
are at two projects, i.e Fraser Place Setiabudi at Setiabudi Sky
Garden and Fraser Suites at Ciputra World 2. All of the projected
future apartments will be operated as serviced apartments. As
such, until the end of 2Q 2014, the total supply of apartments for
lease (serviced and non-serviced) in Jakarta remained at 8,334
units.
By location, apartments for lease in Jakarta are mainly scattered
around the CBD and South Jakarta areas, at around 43 and 35%,
respectively. By grade, most apartments for lease in Jakarta are
classified as middle-upper grade projects, followed by middlelower grade at 74 and 14%, respectively. As expatriates are
the target market for most serviced apartment projects, the
developments are primarily characterised by better building
maintenance and higher rental rate. Apart from that, a minority of
apartments for lease projects are middle-lower class, comprising
old, non-serviced apartment projects located in South Jakarta.

Distribusi Apartment For Lease Based on Region

West Jakarta
6%
North Jakarta
5%

CBD
43%
South Jakarta
36%

Central Jakarta
10%
Source: Colliers International Indonesia - Research

List of Future Apartment For Lease Projects

Name of development

year of
operation

location

no. of units

TBS Linera Apartment Service

2014

Jl. Intan No. 25 Cilandak Barat

South Jakarta

110

Ascott Kuningan Jakarta

2014

Jl. Prof Dr Satrio

CBD

170

Fraser Suites at Ciputra World Jakarta 2

2015

Jl. Prof. Dr. Satrio

CBD

200

Fraser Place at Setiabudi Sky Garden

2015

Jl. Karbela Selatan

CBD

150

Source: Colliers International Indonesia - Research

area

Research & Forecast Report | 2Q 2014 | Apartment | Colliers International

Average Rental Rates

Occupancy Rates

The overall asking rental rates for apartments for lease increased
slightly during 2Q 2014. The QoQ increase in the rental rate was
mostly due to some old apartments having renovated some of
their units and then offering them at higher prices. The renovation
work created a rent discrepancy between the standard and the
renovated units, ranging from USD200 to 400 per unit. On the
other hand, some serviced apartment operators with projects in
the South Jakarta area confidently feel that their high occupancy
rate is the basis for raising the rental rates slightly, between
USD100 and 150 / unit / month.

The dynamic market for Jakarta apartments for lease during 2Q

2014 has made the overall occupancy rate increase by 0.8% to
76.6%. All apartment submarkets, including serviced and nonserviced, have experienced an upward trend compared to the
previous quarter, by 0.2 and 1.9%, respectively.

Average Rental Rates (psm/month) in Different Areas

Rental Rate (psm/month
Area

1q 2014

2Q 2014

change
QoQ

CBD including South

Jakarta

USD27.58

USD27.61

0.1%

Non-Prime Areas

USD15.64

USD15.97

2.1%

Source: Colliers International Indonesia - Research

Overall, the average rental rates of serviced apartments in

the CBD (including South Jakarta) and the Non-prime areas
increased modestly by 0.9% compared to the previous quarter.
Serviced apartments in the CBD area (including South Jakarta)
posted an average rent of USD33.20 psm / month, while the
non-serviced apartments quoted a cheaper rate at an average
of USD26.70 psm / month. Serviced apartments located in the
Non-prime areas reached USD17.80 psm / month, while the
non-serviced apartments charged less at USD13.20 psm / month.

Average Rental Rates of Apartment For Lease

(Serviced and Non-Serviced)
USD 30.00

The Occupancy Rates of Serviced and Non-Serviced

Apartment
take-up

USD 20.00

QoQ change

72.4%

1.9%

Non-Serviced

78.4%

78.6%

0.2%

Source: Colliers International Indonesia - Research

Quite a few transactions occurred in the apartment for lease

market in Jakarta during this fiscal period, especially in May
when a number of expatriates, particularly from Japan, relocated
to Indonesia. On the other hand, newcomers, mostly corporate
tenants, took both short-term and long-term leases.
Regular tenants of apartments for lease, particularly in the
South Jakarta area, were still dominated by Asian expatriates,
such as Japanese and Koreans. Furthermore, the increase in
the occupancy rate during the quarter was underpinned by
corporate tenants from big local banks that occupied a number
of units for training purposes. This contributed to the increase
in the occupancy rate in South Jakartas serviced apartments.
Active industries that generate demand for apartments for lease
continue to be oil and gas, construction, banking and financial,
manufacturing, and embassies.

Average Occupancy Level of Apartment For Lease

(Serviced)
1Q 2014

2Q 2014

QoQ change

CBD

78.8%

82.0%

3.2%

South Jakarta

76.1%

83.8%

7.7%

Non-prime area

51.9%

52.7%

0.9%

Source: Colliers International Indonesia - Research

USD 15.00

Average Occupancy Level of Apartment For Lease

(Non-Serviced)

USD 10.00
USD 5.00

occupancy

USD 0.00
2009

2010

2011

CBD (including South Jakarta)

2012

2013

2014 YTD

Non-prime Area

1Q 2014

2Q 2014

QoQ change

CBD

84.1%

84.6%

0.5%

South Jakarta

78.1%

78.3%

0.3%

Non-prime area

75.9%

75.9%

0.1%

Source: Colliers International Indonesia - Research

Source: Colliers International Indonesia - Research

The increase in the electricity tariff effective 1 July 2014 has

yet to have a substantial impact on serviced and non-serviced
apartments. It will not cause apartments for lease to raise their
rental rates or service charges immediately because the tariff will
be charged directly to the tenants.

2Q 2014

70.5%

occupancy
USD 25.00

1Q 2014

Serviced

Research & Forecast Report | 2Q 2014 | Apartment | Colliers International

In anticipation of tougher competition from strata-title

apartment units offered for lease and operated like non-serviced
apartments, the serviced apartments offered more benefits and
facilities to entice tenants. In addition to the standard facilities,
such as 24-hour security system and swimming pool, many
serviced apartment projects offered various plus points that
cater to the needs of residents. These include special facilities
like a lounge, library or free breakfast, and daily services, such as
free school bus for the children, personal grocery delivery, and
daily maid services, which are not normally available with nonserviced apartments or strata-title apartments.

Concluding Thought
The political circumstances has been the most stirring
factor affecting buyer sentiment. The apprehension over the
presidential election led to a wait-and-see attitude for apartment
buyers who may postpone their buying decisions in the short
term. This is evidenced by the softening demand since 1Q 2014
that impacted the slowing growth in asking prices. On the other
hand, the high interest rate, depreciation of rupiah, and stricter
mortgage regulations remain the concerns of developers in
their attempts to keep sales at a healthy level. In fact, quite a
few developers are initiating various creative strategies that will
likely boost sales of apartments.
The apartment for lease market will grow moderately until 2015,
with a total of four projects in the pipeline located in the CBD
and South Jakarta areas. In addition, massive new stock of new
strata-title apartments located in close proximity to the CBD can
potentially put downward pressure on occupancy levels of both
serviced and non-serviced apartments.
The hike in the electricity tariff in July has not immediately caused
apartments for lease to raise their service charges or rental rates.
In fact, the serviced and non-serviced apartments charge a rental
rate based on daily services, quality of furnishings and facilities
in the apartments. The electricity tariff is charged directly to the
tenants based on their usage.

Research & Forecast Report | 2Q 2014 | Apartment | Colliers International

10 Research & Forecast Report | 2Q 2014 | Office | Colliers International

485 offices in
63 countries on
6 continents

Primary Authors:
Ferry Salanto
Associate Director | Jakarta
62 21 521 1400 ext 134
Ferry.Salanto@colliers.com

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