Jakarta Property Market Insight Q4 2024 Leads Property Services Indonesia Jakarta Property Market Insight Q4 2024 Contents Office Page 3 Condominium Page 10 Retail Page 14 Hotel Page 18 Rental Apartment Page 22 Industrial Page 26 Contact Details Page 30 Disclaimer: This report should not be replied upon as a basis for entering into transactions without seeking specific and professional advice. Whilst facts have been rigorously checked, Leads Property can take no responsibility for any damage or loss suffered as a result of any inadvertent inaccuracy within this report. Information contained herein should not, in whole or part, be published, reproduced, or referred to without prior approval. Leads Property Services Indonesia | Research & Consultancy 2 1. Office CBD OCBD Supply Supply Stable 7.45 million sqm Stable 4.16 million sqm Demand Demand Increased by 11,024 sqm Increased by 3,752 sqm Occupancy Occupancy Increased to 72.3% Increased to 76.8% Leads Property Services Indonesia | Research & Consultancy Jakarta Property Market Insight Q4 2024 CBD Office Market Supply Distribution 2% 2% 10% Kuningan Persada Senayan 9% MH Thamrin 8% Mega Kuningan 27% 11% SCBD Gatot Subroto Rasuna Said 15% 16% Jendral Sudirman Others Source: Leads Property Research, December 2024 Supply Jakarta CBD office market experienced an unprecedented stagnation in 2024, with no new completion. This stability resulted in a total stock that remained unchanged at 7.45 million sqm throughout the year. This condition signalizes a potential stagnation in the market, suggesting a deceleration from the rapid expansion that has characterized the trend in the past decade. Jenderal Sudirman and SCBD continued to predominate the CBD submarket, accounting for almost 40% of market share, followed closely by Rasuna Said and Gatot Subroto of 16% and 15% respectively. Leads Property Services Indonesia | Research & Consultancy 4 Jakarta Property Market Insight Q4 2024 CBD Office Market Supply, Demand, and Occupancy Cumulative Supply (Sqm) 8.00 Cumulative Demand (Sqm) Occupancy Rate (%) 80% Sqm (In Million) 7.50 7.00 6.50 75% 6.00 5.50 5.00 70% 4.50 4.00 3.50 65% 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 Demand Occupancy Rate While the final quarter of 2024 underwent a deceleration in net take-up compared to its preceding quarter, concluding at 11,024 sqm, demand drivers remained resilient. The services-based and manufacture sectors continued their dominance, indicating a sustained appetite for office space. Despite the quarterly slowdown, the annual net absorption for 2024 reached 66,452 sqm, reflecting a robust growth trajectory and representing the highest absorption figure recorded in the past five years. This surge signifies a clear resurgence in market confidence after a period of uncertainty. Due to the absence of new office completion and supported by resurgent demand that yielded a modest 0.2% quarter-on-quarter increase in the Jakarta CBD occupancy rate, the figure moved slightly to 72.3% by end of 2024. This marks a recovery to the occupancy level observed since 2022, signaling a modest rebound from market softening. More importantly, this upward trend suggests a potential for even higher occupancy figure in the near future, particularly under the absence of new supply. Preference of office existence around railway network has catalyzed such demand growth. Approximately 75% of leasing transactions took place within proximity to MRT and LRT lines, underscoring the importance of time efficiency to commuters. Leads Property Services Indonesia | Research & Consultancy 5 Jakarta Property Market Insight Q4 2024 CBD Office Market Average Gross Rent Rental And Strata-title Price IDR USD 50.0 40.0 300,000 30.0 200,000 20.0 100,000 10.0 0 USD psm pm IDR psm pm 400,000 In the final quarter of 2024, average gross rental rates for Jakarta CBD market remained flat, holding steady at IDR 330,300 psm pm (USD 20.9). This lack of movement in overall rental prices indicates a divergence in pricing strategy amongst building grades. While landlords of Grade A properties have been increasing service charges to offset rising operational costs, buildings with higher vacancy rates have maintained their figures and in some cases, even further discounted their base rental rates to attract tenants. This indicates a persistent softness in the market, where landlords prioritize occupancy levels over rental income growth. In the Jakarta CBD, strata prices remained unchanged from the previous quarter, standing at IDR 55,787,000 psm (USD 3,527). This stability indicates a stagnation in the strata office market. 0.0 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 *Exchange Rate of Q4 2024 = IDR 15,818 New Completion P ro j ec t s I n P i p el i n e Project Name Grade Corridor Quarter SGFA (Sqm) Project Name Grade Corridor Quarter SGFA (Sqm) N/A - - - - N/A - - - - Total Completion by Q4 2024 Leads Property Services Indonesia | Research & Consultancy - Total Future Completion by 2024 - 6 Jakarta Property Market Insight Q4 2024 Outside CBD Office Market Supply Distribution East 3% 13% North 45% 20% Central West 19% South Source: Leads Property Research, December 2024 Supply Concluding the Q4 2024, the market’s cumulative supply remained stable at 4.16 million square meters. Given the intense market competition and the cautious approach adopted by developers under current market condition, yet, some new supplies of approximately 72,400 sqm are expected to take place next year. Leads Property Services Indonesia | Research & Consultancy. 7 Jakarta Property Market Insight Q4 2024 Outside CBD Office Market Supply, Demand, and Occupancy Cumulative Supply (Sqm) Cumulative Demand (Sqm) Occupancy Rate (%) 4.25 85% Sqm (In Million) 4.00 80% 3.75 3.50 75% 3.25 70% 3.00 65% 2.75 2.50 60% 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 Demand Occupancy Rate In the running quarter, demand saw a positive absorption totaling 3,752 sqm. With no additional supply entering the market and a positive net absorption However, this figure is significantly lower than the figure of the previous recorded this quarter, the occupancy rate of Jakarta OCBD has reached quarter, which was recorded double the absorption from the current period. 76.8%, increasing by 0.1 percentage points. However, it is important to note Demand during this quarter was primarily driven by tenancy in West Jakarta, that there are still around 0.96 million sqm of office space available for lease. followed by Central Jakarta. In contrast, South Jakarta experienced a decline The upcoming completion and operation of several projects in the future may in demand, as some companies opted to downsize their office spaces, impact the occupancy rate in the Jakarta OCBD area, especially given the contributing to weak performance in such submarket. current difficulties in securing pre-committed tenants for new buildings. Leads Property Services Indonesia | Research & Consultancy 8 Jakarta Property Market Insight Q4 2024 Outside CBD Office Market Rental And Strata-title Price Average Gross Rent In the running quarter, rental rates in Jakarta OCBD area demonstrated notable stability. Despite lower demand during this period, some landlords opted to maintain their base rents. This resulted in a marginal quarter-on-quarter increase of 0.1%, bringing the average gross rental rate to IDR 239,900 psm pm (USD 15.2). USD 400,000 40.00 350,000 35.00 300,000 30.00 250,000 25.00 200,000 20.00 150,000 15.00 100,000 10.00 50,000 5.00 0 USD psm IDR psm pm IDR 0.00 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 2024 2024 2024 2024 *Exchange Rate of Q4 2024 = IDR 15,818 Pr o j ec t s I n Pi p elin e Project Name Corridor Quarter SGFA (Sqm) Gedung Sanggala TB Simatupang 4 9,901 Stature Tower Kebon Sirih 4 15,000 Fortune Tower @Menara Jakarta Kemayoran 1 47,500 Leads Property Services Indonesia | Research & Consultancy In the meantime, strata-title office market in the OCBD have remained stable at IDR 31,830,000 psm (USD 2,012). Outlook Indonesia's resilient economic outlook, despite global geopolitical tensions and market uncertainties, is expected to underpin positive sentiment in the Jakarta office market for the coming years. As the nation's financial and commercial hub, Jakarta's strategic importance continues to fuel its growth trajectory. Source: Leads Property Research, December 2024 Total Future Operation by 2025 With new supply expected to enter the market in the coming years, landlords are likely to keep their rental rates competitive to maintain occupancy and attract tenants. 72,401 The stable economic condition, combined with ongoing infrastructure developments, particularly the expansion of MRT and LRT networks, is expected to sustain strong demand for office space over the long term. Improved public transportation connectivity is making areas outside the Central Business District (CBD) increasingly appealing to businesses, encouraging developers and investors to explore opportunities in such emerging location. However, new office completion within the CBD is expected to remain limited until 2029. Rental rates in Jakarta are expected to gradually increase, especially in buildings with higher occupancy rates along MRT and LRT corridors as such transportation mode drives demand. 9 2. Condominium Supply Increased to 259,900 units Demand Increased to 215,064 units Sales Rate Decreased to 82.7% Leads Property Services Indonesia | Research & Consultancy Jakarta Property Market Insight Q4 2024 Condominium Market Supply Distribution 12.9% 12.4% 16.2% 20.8% CBD South West Central North East 18.3% 19.4% Source: Leads Property Research, December 2024 Supply After a two-quarter hiatus without new projects, this running quarter saw the introduction of two new projects called Two Sudirman and LRT City Tebet (Lotus Tower), consisting of 335 units and 201 units, respectively. Thus, the cumulative supply increased by 0.3% YoY, reaching a total of 259,900 units. Throughout 2024, there were very limited projects launched, indicating developers' cautious approach due to subdued demand. Leads Property Services Indonesia | Research & Consultancy 11 Jakarta Property Market Insight Q4 2024 Condominium Market Supply, Demand, and Sales Rate Cumulative Supply Cumulative Demand Sales Rate 300,000 90.0% 250,000 85.0% Units 200,000 80.0% 150,000 75.0% 100,000 70.0% 50,000 0 65.0% 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 Demand Sales Rate Cumulative demand increased slightly by 0.3% YoY, reaching 215,064 units, The sales rate declined by 0.1 percentage points to 82.7% QoQ, due to the with its 693 units sold during this year. Compared to 2023, annual demand introduction of new projects. However, compared to 2023, the sales rate in 2024 continued to show a downward trend. Although that the remained relatively stable. Notably, subdued demand continued to government reinstated the VAT incentive, applicable to existing projects, overshadow Jakarta condominium market. yet, projects currently under construction did not experience the benefits from such incentive. Apart from landed-residential competition, additionally, the decline of Indonesia’s middle-class category may have also impacted on subdued demand. Leads Property Services Indonesia | Research & Consultancy 12 Jakarta Property Market Insight Q4 2024 Condominium Market Average Sales Price Average Sales Price CBD The sales prices in Jakarta CBD increased slightly by 0.5% QoQ, while Prime Area prime area remained stable, registering IDR 57.5 million psm and IDR 47.5 70,000,000 million psm, respectively. 60,000,000 Despite the challenging market condition, slight upward movement was IDR psm 50,000,000 seen as some developers managed to absorb some units despite in slow pace. In other words, they were still optimist in perceiving the market. 40,000,000 30,000,000 20,000,000 10,000,000 Outlook Extending the VAT incentive program to 2025 and in parallel with strong 0 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 economic growth, modest recovery in the condominium sector is expected to take place. Source: Leads Property Research, December 2024 With the above condition, the VAT increase to 12% planned by the government is applicable more to luxury residential properties, yet, it N ew l y - L a u n c h e d P r o j e c t might not significantly affect its target market as such target market is Project Name Grade Location Total Units Two Sudirman Private Residence Luxury CBD 335 Middle-Up South Jakarta 201 LRT City Tebet – Tower Lotus Total Future Launched Project by 2024 Leads Property Services Indonesia | Research & Consultancy 536 less-sensitive to price fluctuation. Therefore, luxury property market is expected to remain stable. For the past five years, there were some new projects cancelled after their launching due to insignificant demand prior to starting their development. Notably, new projects might need incentive as well such as that of the readily-used residential projects experienced thus far in order to attract buyers. 13 3. Retail Supply Increased to 3.53 million sqm Demand Increased by 16,119 sqm Occupancy Rate Increased to 89.84% Leads Property Services Indonesia | Research & Consultancy Jakarta Property Market Insight Q4 2024 Retail Market Supply Distribution 21% 27% 19% 7% CBD Central East North South West 7% 19% Source: Leads Property Research, December 2024 Supply In this running quarter, Jakarta welcomed a new retail project namely Puri Indah Mall 2 (16,500 sqm). Submarket-wise, Jakarta CBD still hosted the biggest cumulative supply of 0.93 million sqm, followed by West and South Jakarta of 0.73 million sqm and 0.67 million sqm, respectively. Cumulative supply was registered at approximately 3.53 million sqm. Notably, the newlyrevamped mall namely Lippo Mall Nusantara (Formerly Plaza Semanggi) is expected to operate soon next year. Leads Property Services Indonesia | Research & Consultancy 15 Jakarta Property Market Insight Q4 2024 Retail Market Supply, Demand, and Occupancy Rate Sqm (In Million) Cumulative Supply (sqm) Cumulative Demand (sqm) Occupancy Rate (%) 4.00 95% 3.00 90% 2.00 85% 1.00 80% 0.00 75% 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 Demand Occupancy Rate Considerably-high quarterly demand of approximately 16,100 sqm, mostly came from tenancy in Agora Thamrin Nine and Puri Indah Mall 2. As of Q4 2024, F&B’s remained the predominating demand driver amongst retail categories. Others came from some brands such as Pop Mart, ON, New Balance, Kiko Milano, Dreame, Digimap and some others, yet, some took place in existing malls. Additionally, the revamp of Plaza Semanggi seems to have attracted pre-committed tenants to gain higher occupancy rate and better tenancy mix, driving them to confidently operate early next year, which is a promising solution for older shopping malls in Jakarta to sustain. With registered occupancy figure of 89.84%, only reflecting a marginal uptick of 0.04% from the previous quarter, Jakarta retail sector had been experiencing slow pace of market movement, despite the introduction of some new supplies and demand registered. Leads Property Services Indonesia | Research & Consultancy There are still demand in the market, yet, it might not be robust enough to be swiftly absorbed by additional supplies as some existing malls also provided competitive offer, replacing some preceding stores that were shut down. Notably, landlords show good response towards the expansion trend of retailers amidst fast-changing lifestyle. 16 Jakarta Property Market Insight Q4 2024 Retail Market A v er a ge B a se Ren t Overall Jakarta Average Base Rent Jakarta CBD Jakarta Outside CBD Responding to the new supply in the running quarter, Jakarta CBD experienced a decline of 0.5% in rental, dropping to IDR 576,000 psm pm. Such decrease in Jakarta CBD is deemed quite-a-drop movement from its previous quarter, while Jakarta Outside-CBD submarket is deemed relatively stable as it only increased by 0.17% QoQ, registering IDR 403,300 psm pm. IDR psm pm (In Thousand) 700 600 500 400 300 Outlook 200 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 2024 2024 2024 2024 Source: Leads Property Research, December 2024 Note: Above chart reflects figure for specialty store on Typical Floor. F ut ur e Pip elin e Project Name Location Total NLA (sqm) Menara Jakarta Central Jakarta 26,000 Lippo Mall Eastside @ Holland Village Central Jakarta 35,000 Total Completion by 2025 61,000 Leads Property Services Indonesia | Research & Consultancy As a response to the dynamic trend in lifestyle, retailers keep expanding their stores and searching for retail space with competitive offerings. Jakarta retail market is anticipating two new shopping malls in 2025. These awaited-malls to received demand in Central Jakarta, namely Menara Jakarta and Lippo Mall Eastside @ Holland Village are expected to take advantage as thus far, demands have mostly been predominated by CBD, South, West and North Jakarta. Following up the cumulated competition in Jakarta, mature-aged shopping malls are expected to take proactive steps including initiating plan to rejuvenate and renovate. Aiming at not only surviving, but also to attract new wave of customers who seek for more modern and diverse lifestyle experiences. 17 4. Hotel Supply Increased to 56,786 rooms Average Occupancy Rate Increased to 70.65% Average Daily Rate Decreased to IDR 1.512.183 LeadsLeads Property Services Indonesia | Research Property Services Indonesia | Research & & Consultancy Consultancy Jakarta Property Market Insight Q4 2024 Hotel Market Supply Distribution 10% 21% 4% North East Central West South CBD 16% 37% 12% Source: Leads Property Research, December 2024 Supply In the running quarter, the total supply Jakarta hotel market reached 56,786 room-keys, with an addition of 210 room-keys from the newly opened 25hours Hotel Jakarta The Oddbird. Being the main business-hub of the city, several new hotels in Jakarta are expected to enter the market within the next few years. Notable upcoming hotels would include PARKROYAL Jakarta Hotel and Novotel Jakarta Pulomas. Leads Property Services Indonesia | Research & Consultancy 19 Jakarta Property Market Insight Q4 2024 Hotel Market Supply, and Occupancy Rate Room Keys 3 Star 4 Star 5 Star Weighted AOR 60,000 100% 45,000 75% 30,000 50% 15,000 25% 0 0% 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 Tourism Overview Average Occupancy Rate (AOR) Jakarta registered 430,659 international visitors in the first two-months of the running quarter, a 17.2% of annual increase. This indicates a continued growth in the number of international visitors as Jakarta being the main flagship for business trip keeps attracting foreigners. Approaching the last quarter of the year, hotel occupancy in Jakarta continued to perform strongly. With an uptick of 7.7 percentage-points, recording a 70.6% average occupancy rate. This was boosted primarily by the numerous of MICE activities being held by governments and private sector concluding the end of the year. Mainland China continued to be the source of foreign visitors, leading with 80,236 entries, followed by a significant contribution from Malaysia and Singapore. Saudi Arabia and Japan also ranked in the top five. Leads Property Services Indonesia | Research & Consultancy The government’s decision to cut on the civil apparatus business and official trips budgets only brought a minimal impact on hotel performances. Hotel occupancy rate is expected to be still primarily driven by MICE activities in the future. Notably, the delay of the movement of government officials to the new capital city seems to have brought positive impact on this sector. 20 Jakarta Property Market Insight Q4 2024 Hotel Market 3 Star 5 Star 4 Star Average Average Daily Rate (ADR) 3,000,000 The average daily rate (ADR) of hotel sector in Jakarta decreased by 4.0% QoQ, reaching IDR 1.51 million per room per night. Such adjustment is seen as a strategy implemented by hoteliers to remain competitive in the market. 2,500,000 IDR 2,000,000 1,500,000 Average Daily Rates (ADR) of 5-Star hotel reached IDR 2.43 million per room per night, with a slight decrease of 0.8% QoQ deemed much more resilient than the other star-classes. Meanwhile, 4-star and 3-star hotels experienced decline of 9.5% and 7.2% QoQ, respectively. 1,000,000 500,000 0 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 New Completion Outlook Star Rating Location Total Room (Keys) 5 CBD 210 Star Rating Location Total Room (Keys) PARKROYAL 5 CBD 162 NOVOTEL PULOMAS 4 East Jakarta 175 Project Name 25hours Jakarta The Oddbird Future Pipeline Project Name Total Completion by 2025 Leads Property Services Indonesia | Research & Consultancy 337 With new upscale brands and well-known for their reputation, some operators are expected to enter Jakarta hotel market. There are two hotels in the future pipeline including PARKROYAL Hotel Jakarta and Novotel Jakarta Pulomas slated to complete next year. In the next short term, the hotel occupancy rate in the first quarter of next year is predicted to slow down due to the fasting season during Eid alFitr, however, it is expected to rebound afterward. Average daily rates (ADR) of hotel sector is also predicted to remain positive in the coming years as government keeps promoting Indonesia investment to lure foreigners to visit Indonesia. 21 5. Rental Apartment = Supply Stable at 10,444 units Demand Increased to 6,765 units Occupancy Rate Increased to 64.8% LeadsLeads Property Services Indonesia | Research Property Services Indonesia | Research & & Consultancy Consultancy Jakarta Property Market Insight Q4 2024 Rental Apartment Market Supply Distribution 6% 8% 5% CBD South West Central North East 48% 33% Source: Leads Property Research, December 2024 Supply Jakarta saw no new rental apartment opening, signaling a pause in new supply addition from the previous quarter. Despite such absence, rental apartment sector had reached 10,444 units for 2024, reflecting an annual increase of 3.9% compared last year. Notably, one-bedroom unit type predominated the unit mix, making up approximately more than 50% of the total addition. Leads Property Services Indonesia | Research & Consultancy 23 Jakarta Property Market Insight Q4 2024 Rental Apartment Market Supply, and Occupancy Rate Units Cumulative Supply Cumulative Demand Occupancy Rate (%) 10,000 100% 8,000 80% 6,000 60% 4,000 40% 2,000 20% 0 0% 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 Demand Occupancy Rate The continued arrival of expatriates in Jakarta had been a key driver behind the steady demand for rental apartments in the city, with many of these expatriates being single professionals. For this demographic, rental apartments had become an increasingly popular choice amongst smaller households who prioritize convenience and ease of access to major office buildings in the CBD. The occupancy rate in this sector had shown consistent improvement, reaching 64.8% by the end of the quarter, an increase of approximately 0.76 percentage-points. The absence of new supply brought this figure to positively move upward. Such figure hit the level of 2019, prior to the pandemic, yet had not managed to reach that of 2016 – 2018 period, registering approximately 71%. Rental apartments also experienced a notable spike during the Christmas and New Year holiday seasons, driven by families seeking vacation options. This seasonal demand highlights the versatility of rental apartments in catering to both professional and leisure-oriented markets. 24 Jakarta Property Market Insight Q4 2024 Rental Apartment Market Non-Serviced Apartments 35.00 Average Rental Rate Serviced Apartments Average In the running quarter, the average rental rate in this sector was registered at USD 20.45 per sqm per month or stable quarterly. Serviced apartments, which offer additional amenities and services registered USD 23.04 per sqm per month, which is higher than market average. In the meantime, non-serviced apartments registered USD 13.02 per square meter per month. Both types of rental apartment tend to stabilize. 30.00 USD psm pm 25.00 20.00 15.00 Q4 2024 Q3 2024 Q2 2024 Q1 2024 2023 2022 2021 2020 2019 2018 2017 2016 10.00 Source: Leads Property Research, December 2024 Pr o j ec t s I n Pi p elin e Outlook Project Name Category Location Completion Units Ascott Menteng Jakarta Serviced Apartment Menteng 2025 151 Swissotel Living Jakarta Mega Kuningan Serviced Apartment CBD 2025 240 Citadines Kemang Serviced Apartment Kemang 2025 180 Total Expected Completion by 2025 Leads Property Services Indonesia | Research & Consultancy 571 Responding to the increasing trend of expatriates as announced by the government, the rental apartment market is anticipated to experience a surge in new supply in the coming years, with at least 571 units projected to compete, yet, occupancy rate is expected to get pressurized. Around 42% of the new supply next year would come from CBD while the remaining would be predominated by OCBD which is Menteng and Kemang. It is imperative to note that strata-title condominiums would be strong option targeted by hotel operators for their portfolio expansion due to unsold stocks. 25 6. Industrial Supply Increased to 13.80 thousand Hectares Land Absorption Increased to 90.9% Land Price Stable to IDR 2.94 million psm Leads Property Services Indonesia | Research & Consultancy Jakarta Property Market Insight Q4 2024 Industrial Market Supply Distribution 1% 5% 7% 44% Bogor 5% Jakarta Cilegon 8% Tangerang Serang Karawang & Purwakarta Bekasi 30% Source: Leads Property Research, December 2024 Supply Total supply of industrial land in Greater Jakarta was recorded at 13,807 hectares, registering an additional 85 hectares of new supply during the running quarter, contributed by Bekasi and Karawang-Purwakarta area. Such condition indicated a growth of 1.91% QoQ. Concluding 2024, there was an additional of 259 hectares of new land inventory in Greater Jakarta industrial market, which is mainly contributed by Greater Eastern of Jakarta. Leads Property Services Indonesia | Research & Consultancy 27 Jakarta Property Market Insight Q4 2024 Industrial Market Supply, Absorption & Sales Rate Cumulative Supply Land Absorption Sales Rate (%) 15,000 100% 95% 90% Hectare 13,000 85% 80% 11,000 75% 70% 65% 9,000 60% 55% 7,000 50% 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Source: Leads Property Research, December 2024 Demand Sales Rate Net absorption during the running quarter was at 90.1 hectares, leading cumulative demand to reach 12,553 hectares, reflecting quarterly growth of 0.72%. Demand was contributed by data center and battery manufactures, which accounting for 76% of total demand, followed by other sectors e.g. textile, pharmaceutical and food-&-beverages. Additionally, foreign investors outperformed the land absorption, contributing 93% of total quarterly demand. For overall, industrial market recorded total land absorption of 251 hectares during 2024. As indicated in the chart, sales rate managed to reach 90.9% or relatively stable quarterly. Notably, industrial market had managed to show its midterm stability in terms of sales rate. For the past five years, the figure had been hovering in the range of 90-91%. Leads Property Services Indonesia | Research & Consultancy 28 Jakarta Property Market Insight Q4 2024 Industrial Market Industrial Land Price IDR psm (In Million) La n d Pr ic e Bekasi Bogor Cilegon Jakarta Karawang & Purwakarta Serang Average land price stood at IDR 2.94 million per sqm, which is stable from the previous quarter. However, it is predicted that the price adjustment might take place next year, following the high potential demand as Tangerang landlords keep receiving enquiries from investors. Additionally, costs of 6.25 land acquisition and infrastructure development required to support tenants 5.50 with high qualifications, such as IT- and data center- basis would also 4.75 impact on land value. 4.00 3.25 2.50 Outlook 1.75 Industrial land market in the Greater Jakarta area is expected to 1.00 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 outperform other commercial sectors as government keeps attracting foreign investors. A ver age Lan d Pr ice Location To p Deman d Dr iver Average Industrial Land Price Industry Types (Sector) Proportion By Q4 2024 The significant presence of foreign investors, as previously evidenced by the establishment of BYD (China) and Vinfast (Vietnam) being as electric vehicle manufacturer in the eastbound of Jakarta might notify foreign investors regarding the importance of IDR psm USD psm Bekasi 3,130,000 198.09 Data Center 54% Bogor 3,300,000 208.62 Battery Manufacturing 22% Cilegon 2,262,000 143.00 Pharmaceutical & Health 7% Jakarta 5,725,000 361.93 Karawang & Purwakarta 2,570,000 162.58 Textile 5% existing tenants within industrial estates. With the investment target of IDR Food & Beverage 4% 1,905 trillion for 2025 or approximately 19% of annual increase, Indonesia is 8% confident in achieving economic growth of 5.1%– 5.5% despite the global 100% tension. Serang 2,000,000 126.44 Tangerang 2,900,000 183.34 Others Average 2,938,000 185.74 Overall Indonesia’s role in facilitating foreign investment in such industry, especially that Indonesia is very likely to join the BRICS organization to strengthen its position in the global economic. Notably, domestic players would also actively engage in the market, indicated with the expansion of Source: Leads Property Research, December 2024 *Exchange Rate of Q4 2024 = IDR 15,818 Leads Property Services Indonesia | Research & Consultancy 29 CONTACT DETAIL Corporate Occupier Portfolio Services Office Services Industrial Services Residential Services Project Management Retail Services Property Management Investment Services PT Leads Property Services Indonesia Indonesia Stock Exchange Building, Tower I, 26th Floor Jalan Jenderal Sudirman Kav 52-53, SCBD Jakarta 12190, Indonesia Ph. (+62) 21 2903 5111 Fx. (+62) 21 2903 5115 Website: www.leads-property.com [email protected] in PT Leads Property Services Indonesia . @leadsproperty Research & Consultancy Hendra Hartono CEO [email protected] Darsono Tan Senior Director [email protected] IGAM Savitri Senior Director [email protected]
