Jakarta Colliers Market Report 2Q 2012

2Q 2012 i the knowledge
jakarta rEaL EStatE
research & forecast report
Property Sector Overview

office sector
In the last six months, average asking base rental rates of CBD office buildings with US Dollar tariffs rose substantially by 25% to US$26.60/sq m/month. In contrast the average asking rental rates for buildings quoted in rupiah rose by only 13% to IDr143,807/sq m/month during the same period. this continued upward trend occurred because available good-quality office space in the CBD is becoming scarce, leaving around 4.1% of office space vacant at the end of the quarter.
apartment sector
Over the last one-year period, the average apartment price in the CBD for unsold units has risen by 20% from IDr22.9 to 27.5 million/sq m. this rise was largely triggered by a substantial increase in land prices in the CBD. Nevertheless, most of the new and upcoming apartment projects in the CBD are experiencing good sales. another location which recorded a Y-o-Y increase of 9.5% in price is South jakarta outside the CBD where apartment prices escalated from IDr17.2 to 18.8 million/sq m. In terms of supply, another 6,168 units of strata-title apartments have been handed over this quarter in jakarta, bringing the overall number of apartments to 115,928.
eXpatriate hoUsinG sector

the available supply of expatriate-standard housing for the most preferred locations like Pondok Indah, kebayoran Baru and kemang is being depleted because a large number of expatriates are moving to Indonesia. Meanwhile, increases in rental rates, ranging from US$100 to 300 per unit per month, were seen in the serviced apartment market.
retail sector
after being relatively flat for several periods, the jakarta retail market finally saw a moderate increase of almost 9% in asking base rental rates as a result of rent adjustments made by shopping malls with high occupancy and by shopping centres with recently completed major renovation. the average asking base rental rate for available typical floors in jakarta is IDr413,382/sq m/month.
indUstrial estate sector

Industrial land prices continued to soar this quarter with Serang recording the highest change in the Q-o-Q price at 26%, from an average of US$85.16 to 107.53/sq m. Bekasi and karawang also saw a continuing increase in land prices by 6 to 9% this quarter, largely due to the scarcity of land and sustained inquiries. the average Y-o-Y increase for land in karawang and Bekasi was even more substantial, i.e. 85 and 70%, respectively. Overall, land prices in the major industrial areas moved upward by almost 7% Q-o-Q or 32% Y-o-Y. as land availability becomes the major issue this year, total sales, were limited to only 30% of the total sales in 2011. total sales in 2Q 2012 reached 180.2 hectares, mostly fuelled by the sale of 84 ha of land in kota Bukit Indah (Indotaisei) to astra Honda Motor.
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JAKARTA | 2q 2012 | oFFiCe
office sector
Supply
JAKARTA SUPPLY: 1.7 million sq m of office space to enter Jakarta market
jakarta office cUmUlatiVe sUpplY
10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2011 2Q 2012 1Q 2012 2012F 2014F 2015F 2008 2010 2013F 2000 2002 2004 2006 2001 2005 2003 2009 2007
sq m
Existing Supply
annual Supply
Colliers International Indonesia - research
the total office space in jakarta area in 2Q 2012 was 6.48 million sq m of which around 70% is located in the CBD. In this quarter alone, 210,179 sq m of new office space flowed into jakarta. this figure is the highest over the last two years, much higher than in the previous year. With the first half of 2012 gone, the amount of new office space projected to enter the market in the remainder of the year will be around 350,000 sq m, both in the CBD and outside the CBD.
In the next two years, we expect to witness a significant amount of new office space, particularly during 2014. During 2013 - 2014 it is projected that not less than 1.4 million sq m of new office space will be supplied to the market. the annual supply in 2014 is expected to be the largest in history, despite construction being started on only a few of the projected buildings.
cbd
after securing aXa insurance as the anchor tenant. aXa tower was officially launched. this office tower is part of an integrated development called kuningan City located in jalan Satrio and is offered both as strata-title office space and office space for lease. another office tower officially going into operation during the second quarter is a strata-title office building called Office 8, located in the Senopati area. thus, the operation of these two buildings contributed another 122,073 sq m of office space during the quarter. apart from those buildings, two smaller office buildings were also officially launched during the quarter. 18 Office Park located in the Sudirman CBD (SCBD) consisting of five smallscale towers has recently begun leasing space in one of the buildings (tower D). another building operating in 2Q 2012 is Indosurya Plaza (previously known as Exim Melati) in the thamrin Nine complex. this is an old building being rejuvenated where operations were halted for almost two years. With a new faade and modern look and given its strategic location, this building is trying to compete with other buildings.
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| colliers international
cbd annUal office sUpplY based on marketinG scheme

500,000 400,000 300,000
sq m
200,000 100,000 0 2011 2Q 2012 1Q 2012 2012F 2014F 2015F 2008 2010 2013F 2000 2002 2004 2006 2001 2005 2003 2009 2007
For Lease
For Strata-title
With four additional buildings in the CBD, the cumulative supply of office space is registered at 4.50 million sq m. this number will increase to 4.74 million sq m by the end of 2012. It is anticipated that in the three years ahead (2013 - 2015) there will be around 1.23 million sq m of office space of which 60% will be available in 2014. Our supply projections are supported by the construction activities in the field. Office projects scheduled for the remainder of 2012 are expected to be completed as scheduled. this is also the case with office projects scheduled to begin operations in 2013 - 2015 of which some have shown commitment to deliver projects as planned. Menara Prima 2, located in the Mega kuningan area, is an office tower scheduled to open in 2013 and is 50% complete. a high commitment to deliver projects on time was also shown by three projects scheduled for 2014 at which initial works such as land preparation up to the ground-breaking stage have been started. For example, the Noble House Office tower project in Mega kuningan and Wisma Mulia 2 in Gatot Subroto have entered the land preparation stage. the other project is Sahid Sudirman Center which will be one of the biggest office towers along Sudirman providing more than 100,000 sq m of office space. another project is Life tower in jalan Hr rasuna Said. this building is in the process of completing the basement works. Meanwhile, rasuna tower which also located in jalan Hr rasuna Said, due to have redesign, it seems that building will reschedule its completion. apart from the projects under construction, several projects have been officially announced,
including District 8 and the development of more office towers in the Sampoerna Strategic Square complex in jalan Sudirman. Meanwhile, the future St. regis Hotel planned to be built in jalan jenderal jenderal Sudirman was cancelled but the plan for the St. regis Hotel continues with a new landlord. together with this hotel development is an office tower next to the future hotel and located in jalan jenderal Gatot Subroto. the Mega kuningan area is a business district with quite a few vacant plots of land compared to other business districts. Besides the plan for the Noble House Office tower project, one future office project will be developed by Farpoint in Mega kuningan. there will be more commercial development built in this area given the availability of vacant land. another potential area where office development could be built is the rasuna Epicentrum area. two office towers called Gran rubina are planned to be built. With all of the under-construction office projects and the planned office towers in the pipeline, the CBD area is anticipating a huge office space supply particularly in 2014. It is very challenging to search for plots of land along jalan jenderal Sudirman or jalan thamrin, however the potential for new development in the CBD would appear along jalan jenderal Gatot Subroto and in the superblock locations like the SCBD, rasuna Epicentrum and Mega kuningan. Likewise, secondary roads with quick access to the main thoroughfare in the CBD would potentially become a location for commercial development.
colliers international |
p. 3
oUtside cbd
the distribution of office development does not only focus on the CBD area. With the current road infrastructure, inadequate public transport and continued escalation of private car use, traffic is the major obstacle to companies opting for a CBD location. Nevertheless, traffic is jakarta problem but being located in the outside of CBD would at least alleviate the travelling time to the office. Furthermore, several companies do not require the profile and prestige of CBD location, particularly for those in non-service industries like oil and gas, mining or consumer goods. the other factor is accessibility. Companies in the industrial or manufacturing sector with workshops or factories in the surrounding cities like tangerang, Serpong, Bekasi and Bogor will most probably find office locations in the outside of the CBD for easier accessibility. Likewise, the plan to entirely connect jakarta Outer ring road (jOrr 1) in the middle of 2013 will promote more office development particularly in the western part of jakarta and most importantly, will shorten the travel time to the airport.
oUtside cbd annUal office sUpplY based on marketinG scheme

300,000 250,000 200,000
sq m
150,000 100,000 50,000 0 2011 2Q 2012 1Q 2012 2012F 2014F 2015F 2008 2010 2013F 2000 2002 2004 2006 2001 2005 2003 2009 2007
For Lease
For Strata-title
the office market in the outside the CBD area is also anticipating more development in the years to come. During 2Q 2012, two new office towers, i.e. Grand Slipi tower, known previously as Grand Soho in West jakarta and Wisma Pondok Indah 3 in South jakarta, were the newest to contribute a total of 88,106 sq m. the addition of these two office towers brought the cumulative supply in the outside the CBD area to 1.97 million sq m as of 2Q 2012. By the end of 2012, the office market in this area will see further supply of another 120,520 sq m and should this officially open on time, the cumulative supply will reach two million square metres. the remaining office towers projected to be finished this year are all in the final construction stages.
In response to growing inquiries for office space in the outside the CBD area, supply is anticipated to significantly grow to almost 700,000 sq m in 2013 - 2015. Of these, around 45% will be offered as office space for stratatitle sale. It is interesting to note that jalan tB Simatupang will provide the most office development of 444,830 sq m while the remaining supply will be spread out in West jakarta including GP Plaza, DIPO Business Center, Gallery West and Wisma 77 (tower 2). In North jakarta, there will be De Suites and Graha kirana 2. Meanwhile, South jakarta will also provide several office towers including Menara Sentraya, Eighty8 tower B and a newly launched office tower, Lavenue, located in South jakarta.
p. 4
tb simatUpanG
as part of the area in South jakarta, tB Simatupang appears to be enjoying the fastest growth in the outside the CBD area. With continued inquiries for office space mainly derived from oil and gas industries, consumer goods, telecommunications, contractors etc., the tB Simatupang location has lured quite a few developers to build office towers. Currently, from the launch of Ventura tower in 1990 to the launch of Plaza alstom in 2011, there has been 284,948 sq m of office space along tB Simatupang corridor representing around 14% of the total office space in the outside jakarta area.
tb simatUpanG office sUpplY

900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2011 2Q 2012 1Q 2012 2012F 2014F 2015F 2008 2010 2013F 2000 2002 2004 2006 2001 2005 2003 2009 2007
sq m
Existing Supply
annual Supply
Despite no new office space being added during 2Q 2012, 44,020 sq m of office space will commence operations in the remainder of 2012. Nevertheless, the tB Simatupang office market is anticipating a surge in supply in 2013 - 2014 with a total new office space of 339,390 sq m. Several future office towers are concentrated around the arcadia office complex including Green kosmo Mansion, 18 Office Park and PHE tower. PHE is the abbreviation for Pertamina Hulu Energi, the anchor tenant of this building which was previously known as Chitatex tower. Not far from arcadia is the planned Oleos tower.
In the area surrounding the existing talavera Office Park are talavera Suite (the extension of talavera Office Park) and alamanda tower. Further west, an integrated commercial complex next to FIF building called South Quarter is now being constructed. Should the projected buildings finish in 2014, the tB Simatupang corridor will register 668,358 sq m of the cumulative office space which will more than double the current total office supply in 2013 - 2014. traffic congestion will potentially become a drawback for this location.
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fUtUre office bUildinGs
projected completion time

cbd area 4Q 2012 4Q 2012 4Q 2012 4Q 2012 4Q 2012 4Q 2012 4Q 2012 4Q 2012 1Q 2013 1Q 2014 2Q 2014 2Q 2014 2Q 2014 4Q 2014 4Q 2014 4Q 2014 4Q 2014 4Q 2014 4Q 2014 4Q 2014 4Q 2014 4Q 2014 4Q 2014 1Q 2015 1Q 2015 2Q 2015 2Q 2015 4Q 2015 2Q 2015 4Q 2015 DBS tower
bUildinG name
location
sGa (sQ m)
marketinG scheme
statUs*
Satrio Sudirman Sudirman kH Mas Mansyur Sudirman Setiabudi Sudirman Sudirman Mega kuningan Hr rasuna Said Hr rasuna Said Mega kuningan kH Mas Mansyur Mega kuningan Hr rasuna Said Gatot Subroto Sudirman Sudirman kH Mas Mansyur Satrio Gatot Subroto Sudirman Hr rasuna Said Gatot Subroto Hr rasuna Said Satrio Sudirman Sudirman Sudirman Sudirman
64,000 For Lease and For Strata-title 4,814 For Lease 57,000 For Lease 84,000 For Lease and For Strata-title 4,570 For Lease 11,000 For Lease and For Strata-title 4,441 For Lease 4,233 For Lease 40,000 For Lease 30,500 For Lease 40,000 For Strata-title 45,000 For Lease 34,000 For Strata-title 40,000 For Lease 40,000 For Lease 39,356 For Lease 36,596 For Lease 126,600 For Strata-title 34,000 For Strata-title 30,000 For Strata-title 70,000 For Lease 83,000 For Lease 70,000 For Lease 90,000 For Lease 50,000 For Lease 60,000 For Lease and For Strata-title 40,000 For Lease 71,545 For Strata-title 43,000 For Strata-title 118,000 For Lease
Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction In Planning Under Construction In Planning In Planning In Planning In Planning In Planning Under Construction In Planning In Planning Under Construction In Planning In Planning In Planning In Planning In Planning In Planning In Planning In Planning In Planning
18 Park tower a World trade Centre 2 tower 1 at the City Center 18 Park tower B Perkantoran Setiabudi 18 Park tower C 18 Park tower E Menara Prima 2 Life tower Gran rubina tower 1 the Noble House Office tower the City Center (phase 2) Menara Pertiwi Graha Surya Internusa 2 Mangkuluhur tower B Menara Selaras Sahid Sudirman Center the City Center (phase 3) rifa 2 Wisma Mulia 2 Chase tower Gran rubina tower 2 Office tower @St regis Menara Palma 2 Ciputra World jakarta 2 International Financial Center 2 District 8 tower 1 at Sampoerna Strategic Square tower 2 at Sampoerna Strategic Square
oUtside cbd area (exclude tb simatUpanG)

4Q 2012 4Q 2012 2Q 2013 4Q 2013 1Q 2014 2Q 2014 2Q 2014 2Q 2014 2Q 2014 2Q 2014 2Q 2014 Blue Green Office Boutique Eighty8 tower a Eighty8 tower B DIPO Business Park De Suites Wisma 77 tower 2 LVenue Graha kirana 2 GP Plaza Menara Sentraya Gallery West Meruya kasablanka kasablanka Slipi Pantai Indah kapuk Letjen S. Parman Pasar Minggu Yos Sudarso Slipi Iskandarsyah kebon jeruk 20,000 For Lease 56,500 For Lease and For Strata-title 31,000 For Lease 19,600 For Strata-title 8,000 For Lease 24,200 For Strata-title 41,597 For Strata-title 25,000 For Lease 12,204 For Strata-title 52,072 For Lease and For Strata-title 22,800 For Strata-title Under Construction Under Construction Under Construction Under Construction In Planning In Planning In Planning In Planning Under Construction In Planning In Planning
p. 6
projected completion time

tb simatUpanG 3Q 2012 4Q 2012 2Q 2013 4Q 2013 4Q 2013 4Q 2013 1Q 2014 1Q 2014 1Q 2014 1Q 2014 2Q 2014 2Q 2014 4Q 2014 4Q 2014 1Q 2015 2Q 2015 4Q 2015 Sovereign Plaza
bUildinG name
sGa (sQ m)
marketinG scheme
statUs*
16,020 For Lease and For Strata-title 28,000 For Lease 33,000 For Lease and For Strata-title 17,172 For Lease 23,000 For Strata-title 4,181 For Lease 37,699 For Lease and For Strata-title 9,600 For Lease 16,000 For Lease 40,778 For Strata-title 36,627 For Strata-title 40,778 For Lease 40,778 For Lease 39,778 For Lease and For Strata-title 33,440 For Lease and For Strata-title 18,000 For Lease 54,000 For Lease
Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction In Planning In Planning In Planning In Planning In Planning In Planning In Planning In Planning
PHE tower (Chitatex tower) alamanda tower talavera Suite Green kosmo Mansion (GkM) Oleos 2 the Manhattan Square Beltway Office Park tower B Gedung aneka tambang tower 2 South Quarter tower 1 18 Office Park (Cityland tower) South Quarter tower 2 South Quarter tower 3 Plaza Oleos the Manhattan Square tower 2 Signum North tower Signum South tower
*) Under Construction: where construction activity is in progress, including either foundation or superstructure. Under Planning: no contruction activities on site but all permits have been approved by the Government.
Demand
EXISTING DEMAND cbd
the activity of tenant expansions has again lifted the overall occupancy performance during the quarter which was recorded at 95.9%, a Y-o-Y increase of 3.4%. During the quarter alone, several operating buildings have recorded an increase in the occupancy level. the amount of office space being absorbed by these buildings ranged from 1,000 to 6,000 sq m. Leasing activities were mostly dominated by mining, oil and gas, It, shipping and cargo, insurance and finance-related industries.
cUmUlatiVe sUpplY, demand and occUpancY of office space in the cbd

4,500,000 3,600,000 2,700,000 100% 80% 60% 40% 20% 0% 1Q 2012 2001 2005 2009 2003 2010 2007 2011 2Q 2012 2000 2002 2004 2006 2008
sq m
1,800,000 900,000 0
Cumulative Supply
Cumulative Demand
Occupancy (%)
p. 7
the better performance of occupancy rates during the quarter was also fuelled by the performance of newly operating office buildings with high pre-commitment levels before they
are in operation. aXa tower, 18 Park (tower D) and Indosurya Plaza operate with high occupancy and this helped to maintain the overall occupancy level during the quarter.
oUtside the cbd

the overall occupancy for outside the CBD area registered a slight increase compared to the previous quarter, moving upward to 92.4%. Some buildings scattered in East, North and South jakarta registered higher occupancy which helped to lift the overall modest occupancy level. the limited supply of office space in East and North jakarta was the reason for the occupancy rate increase.
cUmUlatiVe sUpplY, demand and occUpancY of office space in oUtside the cbd
2,000,000 1,600,000 1,200,000 100% 80% 60% 40% 20% 0% 1Q 2012 2001 2005 2009 2003 2010 2007 2011 2Q 2012 2000 2002 2004 2006 2008
sq m
800,000 400,000 0
Cumulative Supply
Cumulative Demand
Occupancy (%)
tb simatUpanG
Some old buildings (built during the 90s) experienced a slowdown in occupancy. Compared to the previous quarter, occupancy slowed by around 3.7% to reach 92%.
pre-committed demand
During 2012 there will be 378,131 sq m of new office space of which around 80% has been absorbed. the remaining six months ahead will be a lot easier for buildings scheduled in 2012 to continue their peak performance. the next year will be a tough year to find new office space as only limited space will be available, however, the period of 2014 - 2015 will be quite challenging for the office market given the huge projected supply. None of these office projects expected during that period has confirmed precommitted demand. What is available during 2012 in the outside the CBD area of 227,396 sq m has been 55% secured. In the remaining six months, the search for tenants will continue. Most absorption in 2012 occurred in buildings located along jalan tB Simatupang. In 2013, the total projected office supply of 127,953 sq m has been 26% absorbed and most absorption was experienced by strata-title office buildings. the big challenge will occur in 2014 when a significant 447,911 sq m of office space is projected to be finished. Of the total supply, less than 2,000 sq m has been committed so far. Office buildings projected to be finished in 2014 will be facing a very challenging situation, particularly those located in Simatupang because more than half of the office space will be in this location.
p. 8
space aVailable and committed in 2011 - 2014 cbd

Space absorbed 2014F 2013F 2012F 2011 0 250,000 500,000 750,000 annual Supply 2014F 2013F 2012F 2011 0 250,000 500,000 750,000
oUtside cbd
Space absorbed annual Supply
sq m
sq m
Rental Rates, Service Charge and Prices

RENTAL RATES: US$27.43/sq m/month
around 22 buildings quoting rents in rupiah adjusted their base rents upward in the range of IDr10,000 to 50,000 per sq m per month. During the quarter. this brought the average rental rates for buildings quoting rupiah rent to climb by 7.2% to IDr143,807 for all class of buildings in the CBD. Similarly, with 18 buildings announcing new rental rates ranging from US$1.00 to 12.00 , the average US dollar rent also moved upward Q-o-Q by 13.8% to an average of US$26.60 per sq m per month. In recent times, landlords are generally aware that the office market is peaking due to limited supply and this psychologically led quite a few landlords to test the market by adjusting base rental rates close to the market rate.
aVeraGe askinG rental rates in jakarta
rp276,000 rp230,000 rp184,000 rp138,000 rp92,000 rp46,000 rpPremium Grade a rp Grade B US$
albeit moderately, a similar trend was also shown by offices in the outside the CBD area. an increase of 5.1% brought the average rental rates for rupiah denominated buildings to IDr99,610 per sq m per month. the increase was triggered by some office buildings asking for higher rates of between IDr15,000 and 20,000. On a regional scale, South jakarta fetched the highest average rental rates of IDr121,872 per sq m per month given the higher quality of most buildings in this area, particularly buildings in the tB Simatupang area.
$30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Grade C
p. 9
serVice charGe
though several buildings did renovation work, service charges remained stable during the quarter. the average service charge was only raised by IDr545 to 55,631 per sq m per month in the CBD. Meanwhile the service charges in the outside the CBD was IDr42,593 per sq m per month and only climbed by IDr1,145 over last quarter.
strata-title office space for sale cbd

the absorption level of strata-title office space in the CBD reached 96.9% as of 2Q 2012. Consequently, with limited strata-title office space being available, the price continues to move upward. Compared to last year, the price of strata-title office space has gone up 21.5% while the price under Q-o-Q review went up by 7.8%. the average price of strata-title office space sold at the US Dollar rate was US$2,867 per sq m while that in rupiah were offered at an average of IDr25.8 million per sq m.
oUtside cbd
the overall take-up rates of offices outside the CBD area dropped substantially from 94.6% to only 83.8% in 2Q 2012. the operation of new and sizeable office buildings during 2Q 2012 with relatively low take-up rates changed the overall absorption performance. In term of strata-title office space price per square metre, a significant jump was recorded Q-o-Q to IDr2.76 million which put the average price at IDr20.9 million per sq m. Most of operating strata-title buildings adjusted the price in the range of IDr1 to 4 million while some others have confidently raised the price between IDr7 and 11.5 million.
Outlook
the absorption rates of office space is projected to mildly increase at least until 2013 because new supply in the CBD is very limited during that year. the types of industry which drive this sector will remain, i.e. banking, insurance, oil and gas and the mining and natural resources business. However, a challenging situation will occur both in the CBD and in the non-CBD areas because a significant number of new office space is projected to come on stream. again, the rents showed an upward trend Q-o-Q with buildings quoting US Dollar rates experiencing a significant climb. to date, the market is very confident because quite a few developers are trying to adjust rental tariffs to rival the average market. Buildings with very high occupancy rates are even arbitrarily setting their new prices with the confidence that the market will absorb the office space. the continuing adjustment in the office rents would open more opportunity for the sales of strata-title office space. In the long term, owning office space will be very attractive and this is shown by the good performance of strata-title office space sales.
p. 10
JAKARTA | 2q 2012 | apartment
apartment sector
Apartments For Strata-title Sale
Supply
as of the end of june 2012, a total of 13 towers at nine projects, totalling 6,168 units, have been handed over during 2Q 2012. this quarters additional unit supply almost doubled, up by 44% from the previous quarter. It was even the highest supply of the last three years, bringing the total cumulative supply of strata-title apartments to 107,944 units. approximately 68% of this quarters supply came from brand new developments, including Belmont list of completed project in 2Q 2012 residence (tower Everest), St. Moritz (the royal Suite tower), Senopati Suites, residence 8 at Senopati (towers 2 & 3), Cervinno Village, Menteng Square (three towers) and Denpasar residence (tower kintamani). the remaining 32% came from subsequent phases (additional towers) of current projects such as Seasons City (tower C) and Green Palace apartment (towers r & t).
apartment name Belmont rseidence (tower Everest) St. Moritz (the royal Suite tower) Seasons City (tower C) Green Palace (towers r & t) Senopati Suites residence 8 at Senopati (towers 2 & 3) Cervinno Village Menteng Square (3 towers) Denpasar residence (tower kintamani)
location kebon jeruk Puri Indah Latumenten kalibata Senopati Senopati kasablanka Matraman Satrio
reGion West jakarta West jakarta West jakarta South jakarta South jakarta South jakarta South jakarta Central jakarta CBD
#Units 553 220 714 1,260 103 650 518 1,600 550
as shown on the table, the majority of newlybuilt apartment units are located in South jakarta, accounting for 41% of the total stock,
followed by Central and West jakarta at 26 and 24%, respectively. Meanwhile, the CBD only contributed 9% of the 2Q 2012 supply.
sUpplY distribUtion of strata-title apartments in jakarta bY reGion

West jakarta 25.5% CBD 18.7% Central jakarta 13.1%
East jakarta 5.5%
North jakarta 18.9%
South jakarta 18.2%

Overall, West jakarta remained the largest provider of strata-title apartment units, followed by North, CBD and South jakarta which contributed around 18% of the total stock. East jakarta remains the area which provides the
least number of units since only a few areas so far are suitable for apartment development and close to business areas like Cawang, Cakung and Mt. Haryono.
p. 11
the continued flow of supply to the market reflects a rosy situation for the apartment market in the future. Developers keep building new projects and some are offering sequels to their existing projects. this can be seen at residence 8 at Senopati (Phase 2) and Senopati Suites 2 which recorded sales rates 98 and 100%, respectively. During this quarter, jakartas apartment market saw a mass of newly-launched projects, most of them located in West jakarta. Madison Park
and Metro Park residence (both developed by agung Podomoro Group); Green Central (tower Cerberra), St. Moritz (the New Presidential tower) and Giannetti apartments will add a total of 3,671 units to the stock in West jakarta in the two to three years ahead. Meanwhile, Pluit Seaview (tower Belize) and royal Olive residence (previously planned as El Medina apartments) will add another 300 and 225 units to North jakarta and South jakarta stock, respectively.
newlY - laUnched apartments in 2Q 2012
apartment name Madison Park Metro Park (2 towers) Pluit Seaview (tower Belize) Green Central (tower Cerberra) royal Olive residence (tower I) St. Moritz (the New Presidential tower) Giannetti (2 towers)
location tanjung Duren kebon jeruk Pluit Gajah Mada Buncit raya Puri Indah kemanggisan
reGion West jakarta West jakarta North jakarta West jakarta South jakarta West jakarta West jakarta
#Units 1,400 1,200 300 420 225 151 500
West jakarta, South jakarta, and North jakarta remains the favourite locations for apartment projects for upcoming years since the land prices are relatively affordable (for middle-class projects) and vacant land in certain locations is still available compared to the CBD and Central jakarta. condotel projects in
the apartment market will see more condotels (condominiums for sale but operated like a hotel). In the next three to five years, several projects are scheduled to go into operation under several hotel brands like aston, Best Western, Swiss-Belhotel, Citadines and Wyndham.
apartment name aston rasuna Citadines rasuna the Bellevue the Hive tamansari Grand Whiz the Park residence Woodland Park Wyndham the H residence aston titanium Square aston Sentra timur residence aston DBatavia aston
operator Operates Citadines Best Western Best Western Whiz Swiss-Belhotel Wyndham aston aston aston
statUs Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction In Planning In Planning In Planning
aston leads with 40% of the ten projects followed by Best Western with 20%. Meanwhile Citadines, Whiz, Wyndham, and Swiss-Belhotel
have only one property each in the CBD, North jakarta and East jakarta respectively.
p. 12
condotel projects based on operator based on reGion
Wyndham 10% Whiz 10%
SwissBelHotel 10%
aston 40%
East jakarta 40%
CBD 20% Central jakarta 10%
Citadines 10%
Best Western 20%
North jakarta 10%
South jakarta 20%
By region, East jakarta leads with 40% of the condotel projects operating in this area while South jakarta and the CBD each have 20% of this market. two of the four condotel projects in East jakarta are located in the Cawang area. Cawang is becoming a promising area since it is at the intersection of the industrial area in Bekasi and the downtown. Meanwhile, jalan Mt Haryono (partially located in Cawang area) has been the location for commercial and highrise residential development where existing
strata-title apartment projects have good absorption rates. Condotels and condominiums are both sold with a strata-title. Unlike the usual condominiums, condotels are operated as a hotel with a registration desk, cleaning service and fully furnished. also the management and design that a condotel provides is as good as the hotel standard.
Demand
During the second quarter of 2012, the take-up rate for all marketed projects demonstrated good performance. this was evidenced by an increase in the cumulative take-up rate in jakartas apartment market compared to the previous quarter. the CBD area continued to have the highest absorption as well as an increase in demand QoQ. Furthermore, the overall sales of apartments in 2Q 2012 in jakarta was at 78.2%, an increase of 0.5% over the previous quarter.
aVeraGe take-Up rates in different reGion

reGion CBD South jakarta Outside CBD 1Q 2012 2Q 2012 Q-o-Q 3% 0.7%
82.6% 79.7% 77.9%
85.6% 79.7% 78.6%
the increasing performance of sales activities since the end of 2011 is in line with developers confidence to launch their new apartment projects. Overall pre-commitment sales of projects under construction showed an upward
trend for CBD locations, while other locations reported a slight decrease in the pre-sales. In general, the influx of new apartments could not counterbalance the speed of sales.
p. 13
take-Up of pre-sales apartments in different reGions

reGion CBD South jakarta Outside CBD 1Q 2012 67.8% 67.4% 65.3% 2Q 2012 70.3% 64.2% 64.7% Q-o-Q 2.5% 3.2% 0.6%
comparison of take-Up rates between eXistinG and pre-sales apartments

take-Up Existing Pre-Sales rate 1Q 2012 89.1% 66.3% 2Q 2012 91.0% 65.3% Q-o-Q 1.9% 1.0%
the slight increase was mainly triggered by the good sales of newly completed projects. the operating strata-title apartments in South jakarta experienced the highest take-up rates, especially those located within kebayoran Baru
and Senopati areas. For some time, these areas have been favourite locations for residential projects because they are close to the jakarta Central Business District.
take-Up of operatinG apartments in different reGions

reGion CBD South jakarta Outside CBD 1Q 2012 96.0% 90.2% 87.0% 2Q 2012 96.5% 92.9% 89.0% Q-o-Q 0.5% 2.7% 2.0%
Asking Price
an adjustment to the asking price of strata-title apartments was made in order to separate the prices of existing apartments and apartments under construction. For this purpose, our average price will be adjusted and will only encompass prices of unsold apartments and apartments under construction but which have been offered on the market. the low cost apartments or rusunami will be excluded from this average because they does not represent the overall market price, particularly with the escalation of land prices in jakarta. In general, asking prices for apartment units in jakarta experienced an upward trend, largely due to active construction progress and good sales performance during 2Q 2012. the increase was also triggered by newly-launched projects which offered good building quality, more complete facilities, unique concept and a modern style of building. During 2Q 2012, the CBD area maintained the highest asking price for apartment projects, registering IDr27.51 million/sq m, up by 6.1% from IDr25.92 million/sq m previously. South jakarta and the Non-CBD area, which have more moderate increases than in the CBD, are registering IDr18.85 and 15.05 million/sq m or up by 5.48% and 4.04%, respectively compared to the previous quarter.
p. 14
askinG prices for apartments in jakarta

IDr 30,000,000 IDr 25,000,000 IDr 20,000,000 IDr 15,000,000 IDr 10,000,000 IDr 5,000,000 1Q 2011 CBD 2Q 2011 3Q 2011 4Q 2011 Non CBD 1Q 2012 average
2Q 2012
South jakarta
aVeraGe askinG price in different reGions

reGion aVeraGe askinG price in idr/sQ m 1Q 2012 2Q 2012 Q-o-Q
CBD South jakarta Outside CBD average
25,921,725 17,873,998 14,470,974 18,187,738
27,509,319 18,852,720 15,055,464 19,012,947
6.1% 5.5% 4.0% 4.5%
p. 15
Apartment For Lease (Serviced and Non-serviced)
Supply
No new apartments for lease (serviced or nonserviced) were launched between april and june. Meanwhile, the supply was reduced due to Puri apartments, located in West jakarta, temporarily ceasing operations to renovate and improve the interior of their apartments. Consequently, Puri apartments comprising 72 units of non-serviced apartments and 23 units of serviced apartments, terminated the occupancy of all remaining tenants this quarter. after having been in operation for 17 years, the management made the decision in order to compete and to become the first destination location in West jakarta for the expatriate market. Because of this, the total cumulative supply for both serviced and non-serviced apartments dwindled to 7,984 units, a decrease of 1.2% from the 8,079 units in the prior period. after all, the number of apartment for lease projects is expected to grow, especially in the CBD area. Colliers International Indonesia recorded that as many as four projects, comprising 791 units, mostly are in the under construction phase.
list of fUtUre apartments for lease projects
apartment name Plaza Senayan (tower c & D) ascott kuningan Somerset kentjana Frasers Suites
location Senayan Satrio Pondok Indah Satrio
reGion CBD CBD South jakarta CBD
cateGorY Non-serviced Serviced Serviced Serviced
#Units 217 186 188 200
cUmUlatiVe sUpplY of apartment for lease (serViced and non-serViced)

6,000 5,000 4,000 Unit 3,000 2,000 1,000 0 2005 2006 2007 2008 2009 2010 Serviced 2011 1Q 2012 2Q 2012F 2013F 2014F 2015F 2012
Non-serviced
Demand
In line with the expanding business of multinational firms and rising inflow of foreign investment, leasing inquiries from expatriates were seen to rise in 2Q 2012. the overall market for leasing (serviced and non-serviced) apartments recorded an upward trend to an average 80.1% after a lower performance of 75.1% in the previous quarter. Expatriates from foreign or multinational firms continued to dominate the demand for serviced apartments, while local renters dominated the non-serviced apartment market. Of the apartments for lease, the non-serviced apartment category experienced the largest increase in occupancy of 6.8% from the previous quarter to an average 80.6%, due to short-term increasing demand from local government institutions having training and seminars.
p. 16
comparison of occUpancY on serViced and non-serViced apartments

occUpancY Serviced Non-Serviced 1Q 2012 2Q 2012 Q-o-Q 1.5% 6.8%
77.6% 73.8%
79.1% 80.6%
Demand from corporations is mainly generated in the South jakarta area, which is also known as a favoured location for expatriates due to its proximity to international schools, hospitals, retail centres, and business centres. Benefiting from the good ambience with big shade trees and its proximity to the downtown, this area remains the most preferred location particularly by western expatriates and wealthy Indonesians.
after more than a year of construction on the flyover project which connects antasari and Blok M, the apartment buildings located around that project, such as taman kemang jaya, Griya Prapanca, and Luxury kemang have been quite active and recorded a positive trend.
aVeraGe occUpancY at apartments for lease in all reGions

reGion CBD South jakarta Outside CBD 1Q 2012 84.4% 76.2% 66.5% 2Q 2012 85.5% 84.1% 72.9% QoQ 1.1% 7.9% 6.4%
Lease transactions are expected to continue to increase in line with the improving national economy. From our survey, quite a few serviced and non-serviced apartment landlords conveyed their optimism that the market will be better
given that they have achieved pre-commitment leases from new tenants. In the short term, the terms of lease will benefit from school holidays as well as business travellers coming to jakarta.
Rental Rates
We upgraded the methodology analysis of rental rates for apartments for lease. apartments for lease are managed for rental only and are divided into two types i.e. serviced apartment and non-serviced apartments. the focus of the report will place more emphasis on the CBD area and South jakarta area. this is mainly because these two areas are the most preferred locations for expatriates. In addition, the majority of apartments for lease are mostly found in these two areas. During 2Q 2012, some serviced apartments, mostly in the CBD area, increase their rental rates by a minimum of US$50.00 to a maximum of US$300.00/unit/month. this was mainly due to the increase in operational costs and because of the adjustment made following the market trend. Meanwhile, rental rates of nonserviced apartments both in the CBD and NonCBD remained stable. Serviced apartments in the CBD have average rental rates of US$27.57/ sq m/month, while in the Non-CBD area including South jakarta they are US$21.29/sq m/month.
p. 17
aVeraGe askinG rental rates based on reGion

reGion CBD Non-CBD serViced non-serViced
US$27.57 US$21.29
US$16.48 US$12.40
apartments for lease in the CBD area have the highest asking rents of US$23.87/sq m/month modestly increasing compared to the prior period, while in the Non-CBD area including
South jakarta, rents for apartments for lease moved upward mildly to US$14.89/sq m/ month.
aVeraGe rental rates of apartment for lease (serViced and non-serViced)

$26.00 Rental Rate/sq m/month $24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 CBD Non CBD
Outlook
Several indicators like the increase in sales and apartment prices have indicated that the market for apartments has improved. Compared to the last two years, apartment prices have increased quite significantly, particularly those located in the strategic commercial area. In particular, those within the CBD or in proximity to the downtown have experienced the greatest increase mainly due to substantial escalation in land prices. recently, the price of apartments under construction could be double that of the initial price in one to two years time. On the other hand, sales of apartments have grown gradually following the confidence in the countrys investment prospects. this is by evidenced the sales performance of each under construction project where pre-commitment sales are recorded in high numbers. Other indicators which are influencing this vibrant market are the influx and interest of foreign investors looking to acquire development projects. On the other hand, it is quite challenging to find motivated enbloc sellers in such a conducive investment climate. Such investors would aim at certain locations where the leasing market is strong, in particular, the CBD and parts of South jakarta which are either close to downtown or to international schools.
p. 18
JAKARTA | 2q 2012 | residential expat housing
residential expatriate housing sector

Expatriate Housing
Supply and Rental Rates

South jakarta is so far irreplaceable as an expatriate home location as it provides comprehensive facilities for expatriate needs such as an international school, international clubs, international hospital, entertainment centre, shopping spots, offices and other points of interest. Expatriates with children would rather endure longer travel times to their office locations as long as their childrens schools are close to their homes. thus housing within the catchment of the international school is in high demand. Nevertheless, there are a very limited number of houses that meet expatriate standards. In order to meet those requirements, many houses in favourite locations such as the kemang, Cipete and Cilandak areas, are doing renovations and refurbishment. Furthermore, landlords are willing to demolish their old houses to build more modern ones with better design and building materials to increase their competitiveness as well their rental rates. For the reasons mentioned above, there are a few high-quality houses within the preferred location that have adjusted their average asking rental rates during the first half of the year. typical houses are offered at a slightly higher monthly rent, ranging from US$2,500 (for a three-bedroom house) to the highest US$7,000 (for a four- to five-bedroom house). Even in certain areas like Menteng, kebayoran Baru and Pondok Indah, the landlords are asking exceptionally high rents up to US$15,000 per month. the Menteng area, which is close to the CBD and where the stock of good quality expatriate housing is limited, has the widest range of rental rates, from US$4,000 - 15,000 per month. this is mainly because there are some small or older houses which are still available on the market. the table below gives a brief description of average land prices in some preferred expatriate locations.
aVeraGe land prices in seVeral eXpatriate locations

locations kuningan kebayoran Baru Menteng Pondok Indah Permata Hijau kemang Cipete Pejaten Cilandak aVeraGe land price/sQ m in idr 21.4 million 19.3 million 19.1 million 17.6 million 15.7 million 8.4 million 7.4 million 7.3 million 6.5 million in Us$ (eQUiValent) 2,490 2,240 2,220 2,050 1,830 980 860 850 760
p. 19
eXpatriate hoUsinG rental rates

locations kuningan 4 - 5 Bedroom House kebayoran Baru 4 - 5 Bedroom House 3 - 4 Bedroom townhouse/complex menteng 4 - 5 Bedroom House pondok indah 4 - 5 Bedroom House permata hijau, simpruk 4 - 5 Bedroom House 3 - 4 Bedroom townhouse/complex kemang 4 Bedroom townhouse/complex 3 Bedroom House 4 - 5 Bedroom House Cipete 3 Bedroom townhouse/complex 4 Bedroom townhouse/complex 3 Bedroom House 4 - 5 Bedroom House pejaten 3 Bedroom townhouse/complex 4 Bedroom House Cilandak 4 Bedroom townhouse/complex 3 + 1 Bedroom House 4 - 5 Bedroom House 300 - 700 300 - 600 450 - 750 3,500 - 6,500 3,000 - 5,500 3,500 - 7,000
size (sQ m) 500 - 900 600 - 1,500 250 - 700 500 - 1,200 550 - 1,000 400 - 1,500 220 - 240 400 - 700 400 - 750 550 - 1,000 200 - 300 400 - 700 300 - 500 400 - 800 400 - 600 500 - 900
rental rates (in Us$/Unit) 3,500 - 11,500 4,500 - 15,000 3,500 - 8,000 4,000 - 15,000 4,500 - 15,000 3,500 - 12,000 2,750 - 4,500 3,500 - 5,500 3,000 - 5,000 3,500 - 7,000 2,500 - 3,500 3,500 - 6,000 2,500 - 3,500 3,500 - 7,000 3,500 - 7,000 3,000 - 7,000
Demand
On the demand side, there were no changes in the type of industries that were looking for expatriate-standard housing. Several lines of businesses such as oil and gas, consultants (PwC, aBB), and the World Bank were active during the first half of 2012. to date, demand for expat housing has been increasingly high but the supply rates grew slower as stock is limited.
p. 20
Apartments
Supply and Rental Rates

For the first half of 2012, the average rental rates for selected expatriate apartments have shifted upwards. Overall, most increases occurred in the serviced apartment market ranging from US$100 - 300 per unit per month. In general, rental tariffs for non-serviced apartments remain relatively flat, except for apartments for expatriates in high demand, like Pakubuwono residence and Dharmawangsa residence. Such projects are very confident that they can raise the rent by at least an additional US$500 per unit. On the fringe of the CBD, the Senopati Suites project will become a preferred location for expatriates. Besides its instant access to the CBD, this apartment complex provides large units, a barbeque area and other facilities. Below is a table providing information on the rental rates in the selected apartment complexes for expats based on number of bedrooms and location.
rental rates of selected apartment projects in the eXpatriates location

locations sudirman 2 Bedroom apartment 3 Bedroom apartment 4 - 5 Bedroom apartment kuningan 2 Bedroom apartment 3 Bedroom apartment kebayoran Baru 2 - 3 Bedroom apartment 4 - 5 Bedroom apartment menteng 2 Bedroom apartment 3 Bedroom apartment pondok indah 2 + 1 Bedroom apartment 3 Bedroom apartment 4 - 5 Bedroom apartment permata hijau, simpruk 3 - 4 Bedroom apartment kemang 3 Bedroom apartment Cipete 3 - 4 Bedroom apartment Cilandak 3 Bedroom apartment 262 - 300 3,450 - 3,950 220 - 295 3,500 - 5,000 165 - 200 2,500 - 3,500 225 - 300 3,000 2,700 - 4,000 83 - 190 190 - 300 285 - 500 2,700 - 3,100 3,400 - 4,500 5,250 - 5,750 2,000 - 2,500 2,800 - 3,500 3,500 - 4,000 112 - 142 147 - 213 2,000 2,200 - 3,500 120 - 350 400 - 500 1,750 - 4,000 5,500 - 7,000 95 - 145 96 - 323 2,750 - 4,250 3,200 - 4,400 2,000 - 2,500 2,500 - 4,000 119 - 121 156 - 238 236 - 513 3,800 - 5,500 4,400 - 6 300 2,500 - 4,000 3,500 - 5,000 4,000 - 8,000 size (sQ m) rental rates (Us$/Unit) serViced non-serViced
p. 21
Occupancy
Upper-class apartments generally had high occupancy of between 79 and 95%. this figure was somewhat stable compared to what was achieved in the previous semester. the most preferred areas are still in the CBD or areas close by, rather than South jakarta, such as ascott and Shangri-La residence.
aVeraGe occUpancY rate of selected apartments preferred bY eXpatriates

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% a
Notes: a: Dharmawangsa, Shangri-La, airlangga, Pakubuwono B: Four Seasons, Plaza Senayan, the Plaza residence C: the residence, Golf Pondok Indah, Bukit Golf, ascott, Menteng Executive D: aston, Permata Berlian, Puri Casablanca, Casablanca E: taman rasuna, Puri Imperium
average
p. 22
JAKARTA | 2q 2012 | retail
Retail Sector
Supply
jakarta
jakarta retail cUmUlatiVe sUpplY
5,000,000 4,000,000 sq m 3,000,000 2,000,000 1,000,000 0 2011 2Q 2012 1Q 2012 2000 2012F 2014F 2014F 2002 2004 2006 2008 2001 2005 2010 2013F 2013F 2009 2003 2007
the jakarta retail market again saw no additional retail space this quarter. Despite reaching the final stage of construction, six retail centres which are projected to bring new supply in 2012 have not been completed. One of the projected developments is eXion Mall located within the kemang Village complex. a hypermarket opened last year but the mall will only be officially launched in October 2012. Similarly, a big mall in the kasablanka area, South jakarta is speeding up construction to hasten its completion. this more than 100,000 sq m mall will officially open in the first month of 3Q 2012. the other retail centre is Pulomas
Xventure which will feature the entertainment attraction like labyrinth jungle, bumper boats and flying fox within the mall. another mall showing commitment to open as scheduled is Ciputra World (now known as Lotte Shopping avenue after being entirely leased by Lotte). this mall is finishing work on the faade as a final preparation before opening soon. With no new malls entering the market, the total supply of retail space in jakarta was 4.04 million sq m in 2Q 2012. this number is similar to the previous quarter.
jakarta retail cUmUlatiVe sUpplY based on reGion

1,200,000 1,000,000 800,000 sq m 600,000 400,000 200,000 0 1Q 2012 2001 2005 2009 2003 2010 2007 2011 2Q 2012 2000 2012F 2002 2004 2006 2008
CBD
Central jakarta
South jakarta
North jakarta
East jakarta
West jakarta
Overall, from 2000 through 2011, the average jakarta retail supply showed an annual growth of 12.2%. this growth demonstrated additional supply of 249,593 sq m per year during the
period. With 282,827 sq m of new retail supply entering the market in 2012, it will maintain an average growth above 200,000 sq m per year.
p. 23
Based on region, the retail supply in West jakarta showed the lowest average growth at 6.5% per year between 2000 and 2Q 2012. after Central Park in 2009, there were no new malls opened and the cumulative supply stayed at 597,210 sq m. New retail space will only become available in 2013 with the opening of St Moritz Mall. In the South jakarta area, kota kasablanka Mall and eXion Mall at kemang Village are expected to operate in the future. another mall is Pondok Indah Street Gallery, which is an extension of Pondok Indah Mall 1 on which construction started last year. Should these future malls open, they will contribute 175,152 sq m new supply. Since 2010, there have been no new malls completed in North jakarta. the total supply stayed at 935,199 sq m and there will be no new supply in North jakarta up to the end of 2012. the only future mall in the region will be the Baywalk at Green Bay providing 52,000 sq m of new retail space in 2013. although East jakarta had the smallest cumulative supply as of 2Q 2012, i.e. 299,348 sq m, the region showed growth of 14.6% per year from 2000 to 2Q 2012. after two smallscale retail centres came onto the market with a total of 22,663 sq m in 2010 - 2011, Pulomas XVenture and Cipinang Indah Mall are anticipated to bring 45,200 sq m of new supply in two years. Central jakarta, which covers retail areas like Menteng, Gajah Mada, Senen and tanah abang showed 18.2% average growth from 2000 to 2Q 2012. the golden age of the retail supply in Central jakarta occurred from 2002 to 2005 when there was 566,173 sq m. the total supply for the region was 747,410 sq m as of 2Q 2012.
However, due to limited land, no new retail centres have been opened in Central jakarta since last year. It seems that the trend will continue until the end of 2014. Unlike Central jakarta, the scarcity of vacant land currently does not impact the influx of retail supply in the CBD. the total cumulative retail space was 719,593 sq m in 2Q 2012, reflecting an annual growth of 12.8%. the latest shopping centre was kuningan City Lifestyle Mall in late 2011. Ciputra World Mall in jalan Satrio is projected to open in the second semester of 2012. Several under-construction retail centres projected to enter the market in 2013 are rushing their work progress to meet the completion schedule. Cipinang Indah Mall and the Baywalk at Green Bay Pluit have almost completed the construction of building structures. Meanwhile, only just starting work on the basement, St Moritz Mall confidently stated that they will be completed next year. these future malls will add another 129,200 sq m of retail space in jakarta. apart from construction activities, other issues like supply reduction will occur in jakarta. a retail centre located in tendean, South jakarta, will close in the next quarter of 2012. the landlord is planning an apartment development and will replace the mall which has been in operation since 2002. another supply reduction will probably happen in one year. a mall located in jalan thamrin will cease operations and as a result, an office tower is planned to replace the existing mall. Still around the thamrin area, a retail centre which has been in operation since 1962 is planned to be revamped. Later on the landlord will extend its leasable area and the whole compound will remain as a commercial centre with a hotel.
p. 24
list of fUtUre shoppinG centres in jakarta
shoppinG centres name 2012 kota kasablanka eXion Mall kemang Village Ciputra World jakarta Menteng Square Pulomas XVenture Pondok Indah Mall Street Gallery 2013 Cipinang Indah Mall the Baywalk @Green Bay Pluit St. Moritz 2014 Mall at the City Centre the Gateway Pantai Indah kapuk Mall 2016 Pondok Indah Mall 3 Cipinang Pluit
location
reGion
nla (sQ m)
statUs
kasablanka antasari Satrio Proklamasi Pulomas Pondok Indah
South jakarta South jakarta South jakarta Central jakarta East jakarta South jakarta
110,000 Under Construction 56,052 Under Construction 78,000 Under Construction 4,475 Under Construction 25,200 Under Construction 9,100 Under Construction
East jakarta North jakarta West jakarta
20,000 Under Construction 52,000 Under Construction 129,200 Under Construction
Puri Indah
kH Mas Mansyur Pondok Gede Pantai Indah kapuk
Central jakarta East jakarta North jakarta
35,000 Under Planning 10,000 Under Planning 30,000 Under Planning
Pondok Indah
South jakarta
40,000 Under Planning

bodetabek
bodetabek retail cUmUlatiVe sUpplY
3,000,000 2,400,000 sq m 1,800,000 1,200,000 600,000 0 2011 2Q 2012 1Q 2012 2000 2012F 2014F 2002 2004 2006 2008 2001 2005 2010 2013F 2009 2003 2007
Cimanggis Square is the latest shopping centre in the jabodetabek area and there will be no new retail centres afterwards in the outside jakarta area (Bodetabek). two retail centres in tangerang, Mall Bale kota and alam Sutera shopping malls will only be completed at the end of 2012.
the absence of new shopping centres maintained the cumulative supply in Bodetabek area at 1.93 million sq m however, this area is still perceived as a potential area for the retail market to grow. today, there are several areas with growing business and residential areas in the outside of jakarta which have potential for retail businesses.
p. 25
In Bekasi, there will be 138,285 sq m of new retail centres projected to be completed in 2013 and as of this quarter, all retail centres are reported to have reached the final stages of construction. In 2Q 2012, some shopping malls were
hastening construction to meet their completion dates. Some of these malls are Cibinong Citymal in Bogor and four retail centres in Bekasi including Bekasi junction, Grand Metropolitan Mall and Grand Galaxy Mall while the extension of Citra Gran Mall is scheduled for completion in early 2013.
bodetabek cUmUlatiVe sUpplY based on reGion

1,200,000 1,000,000 800,000 sq m 600,000 400,000 200,000 0 1Q 2012 2001 2005 2010 2Q 2012 2012F 2013F 2009 2003 2000 2007 2011 2014F 2002 2004 2006 2008
Bogor
Depok
tangerang
Bekasi
list of fUtUre shoppinG centres in bodetabek
shoppinG centres name 2012 Shopping Mall at alam Sutera Mall Balekota 2013 Grand Galaxy Mall Bekasi junction Grand Metropolitan Mall Urbana Cinere Cibinong City Mall Mall Ciputra Citra Gran Plaza Cibubur extension 2014 Bintaro Xchange Lippo Cikarang Citywalk (phase 2) Summarecon Bekasi (phase 1) Mal Harapan Indah the Breeze Sinar Mas Land Bekasi trade Center 2 2016 Cimandala City trade Center Summarecon Bekasi (phase 2) Bogor Bekasi Bintaro Cikarang Bekasi Bekasi Serpong Bekasi Bekasi Bekasi
location
reGion
nla (sQ m)
statUs
alam Sutera tangerang
tangerang tangerang
68,000 Under Construction 25,000 Under Construction
Bekasi Bekasi Bekasi Depok Bogor Bekasi Depok
23,000 Under Construction 42,000 Under Construction 40,000 Under Construction 30,000 Under Planning 30,000 Under Construction 26,000 Under Construction 2,000 Under Construction
kalimalang Cinere Cibinong Cibubur Cibubur
tangerang Bekasi Bekasi Bekasi tangerang Bekasi
45,000 Under Planning 10,000 Under Planning 35,000 Under Planning 44,420 Under Planning 24,300 Under Planning 30,000 Under Planning
Bogor Bekasi
30,000 Under Planning 40,000 Under Planning

p. 26
Demand
eXistinG retail performance
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 2008 2009 2010 jakarta 2011 BoDetaBek
1Q 2012
2Q 2012
jakarta
as of 2Q 2012, the occupancy rates of retail centres for lease in jakarta improved moderately to 89.5% Q-o-Q. thanks to middle-class retail centres like tebet Green, Pasaraya Blok M, Plaza Semanggi, kalibata City, POINS and fX Lifestyle xnter which maintained the overall performance. Occupancy rates for middle- to upper-class malls achieved an average of 93.3% in 2Q 2012 up mildly compared to the previous quarter. kuningan City, a new mall which has been operating since last year, has a good occupancy rate together with other middle- to upper-class malls. On the other hand, middle- to low-class malls showed a moderate decline in occupancy during the quarter. In 2Q 2012, the average occupancy rate of this class was 85%. the high competition among the electronics and gadget retailers located in Mangga Dua. Has created rivalry among stores which caused some tenants (fashion and accessories) to pull out. this was also seen in a mall located in the Blok M area of South jakarta. all in all, it is not always market competition which causes some retailers to terminate their business which decrease the occupancy level of a mall. Some landlords are now quite selective in sorting out their existing tenants (low performing tenants are replaced). Other than that, some renovation work at a mall may also affect the overall occupancy. the food and beverage (F&B) businesses are some of the most active retailers which help maintain the level of occupancy. the industry has grown faster in the second quarter after slowing in the prior quarter. they are likely speeding up expansion in anticipation of the Islamic holiday, Idul Fitri, when people usually spend more for both F&B and fashion. Plaza Semanggi, kalibata City Square, tebet Green, fX Lifestyle xnter, Plaza eX, kuningan City, Central Park and Plaza Festival are malls with F&B domination which opened in 2Q 2012. For example, roppan and kenny rogers restaurant, which are located in the main entrance of Plaza Semanggi, have been open since May 2012. Likewise, the Coffee Bean & tea Leaf opened at tebet Green and Central Park Mall. the largest F&B invasion was at Plaza Festival (now known as Passer koeningan), a mall that combines sport, entertainment and culinary concepts which welcomed Betawi tempo Doeloe as an anchor tenant during 2Q 2012 with 2,200 sq m of space. Fashion retailers of shoes, bags and accessories are the second most active. Some brands are quite active this quarter including Color Box, atmosphere, Gallop, armani jeans, Hugo Boss, the Little things She Needs, Crocs, rococo, Barbara Shoes, Class room and Furla. In addition to F&B and fashion, other retailers like home equipment, gadgets and electronics, entertainment, beauty, health and personal care were active tenants in 2Q 2012. In the home equipment category, three retailers have taken large spaces between 1,000 and 7,000 sq m at malls located in South jakarta. ace Hardware and Informa, two retailers in the kawan Lama Sejahtera group of companies, opened at tebet Green and Pasaraya Blok M while Home Solution will open at Plaza Semanggi. During 2Q 2012, ace Hardware has been operating while Informa and Home Solution are doing fitout work.
colliers international | p. 27
occUpancY rates based on class

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 2008 2009 Middle Upper 2010 Middle 2011 1Q 2012 2Q 2012
Middle Low
list of new major tenants dUrinG 2Q 2012
shoppinG centres name Plaza Festival Pasaraya Blok M tebet Green Mall Plaza Semanggi kuningan City
location Hr rasuna Said Blok M Mt Haryono Sudirman Satrio
reGion South jakarta South jakarta South jakarta South jakarta South jakarta
retailers Passer koeningan Informa ace Hardware Home Solution ace Hardware
line of bUsiness Food and Beverages Home appliances Home appliances Home appliances Home appliances
statUs Open Fitting Out Open Fitting Out Open
list of new tenants dUrinG 2Q 2012
shoppinG centres name Plaza Semanggi
location Sudirman
reGion South jakarta roppan
retailers
line of bUsiness Food and Beverages Food and Beverages Food and Beverages Fashion and accessories Fashion and accessories Food and Beverages Fashion and accessories Beauty and Health Care automotive Beauty, Health and Personal Care Beauty and Health Care Food and Beverages Beauty and Health Care Optical Shoes, Bags and accessories Shoes, Bags and accessories Shoes, Bags and accessories Education and Entertainment
statUs Open Open Fitting Out Fitting Out Fitting Out Open Open Open Fitting Out Fitting Out Fitting Out Opening Soon Fitting Out Opening Soon Fitting Out Fitting Out Fitting Out Fitting Out continued
kenny rogers Dapoer Selera Color Box athmosphere tebet Green kuningan City Plaza eX Mt Haryono Satrio MH thamrin South jakarta South jakarta Central jakarta the Coffee Bean and tea Leaf kay Collection Samasara reflexology Chrysler Energy Massage reflexology NYX Cosmetics fX lifestyle xnter Sudirman Central jakarta Sukasuki Watsons Optik Melawai the Little things She Needs Crocs rococo rack Steps
p. 28
shoppinG centres name Mall taman anggrek
location
reGion
retailers
line of bUsiness
statUs continuation
S. Parman
West jakarta
the Little things She Needs Erafone Megastore X.to.X Plus Babara tony & Moly
Shoes, Bags and accessories Gadget and Electronics Fashion Shoes, Bags and accessories Beauty and Health Care Fashion Electronics Others Food and Beverages Fashion Fashion Shoes, Bags and accessories Gadget and Electronics Shoes, Bags and accessories Food and Beverages Food and Beverages kids, Hobbies and toys Optical, jewellery and Watches Entertainment
Open Open Open Open Open Fitting Out Fitting Out Fitting Out Open Open Fitting Out Open Open Open Fitting Out Fitting Out Opening Soon Fitting Out Open
Citraland
Daan Mogot
West jakarta
Gallop Samsung tX travel
Central Park
S. Parman
West jakarta
the Coffee Bean and tea Leaf armani jeans Hugo Boss Furla Bose Class room Pizza e Birra Black Canyon Coffee Play House Land
Mall artha Gading Graha Cijantung
kelapa Gading Cijantung
North jakarta East jakarta
Optik Melawai Inul Vizta
bodetabek
the occupancy rate in the Bodetabek area is relatively stagnant at 86.3%. Overall, the retail market in Bodetabek saw both leasing activities and leasing terminations keeping the occupancy rate the same. the closure of several stores in some retail centres in Serpong, tangerang has brought more vacant space. tenants like beauty, health and personal care, tour and travel, and money changers ceased operations at the mall which is located in Serpong main road. Business competition among retailers has pushed several tenants to move out of the shopping centre. again, due to tight competition, several retailers in a shopping centre located in the BSD, tangerang could not survive and have vacated their premises. to anticipate further vacancy, the landlord tried to approach owners of store list of new tenants dUrinG 2Q 2012 units that have been purchased to convince them to lease the units like retail space (like a mall) and finding lessees for the space. after three to five years of operations, the landlord will return the units to the unit owner. Such strategy is expected to save the whole premises from becoming vacant and will boost the landlords reputation. apart from a declining trend in occupancy, some leasing activities helped to fuel the overall performance in the Debotabek area. Living World, which is located in alam Sutera, tangerang has increased its occupancy after one year of operations. Currently the remaining vacant space is only 20% of the total leasable area.
shoppinG centres name Living World
location alam Sutera
reGion tangerang
retailers Bebek tepi Sawah
line of bUsiness Food and Beverages
statUs Fitting Out
p. 29
fUtUre retail performance

after having intensive approach and doing a preliminary study into expanding operations into Indonesia, German-based giant retailer, Metro Group has decided to terminate the plan because they want focus more on improving sales figures. the cancellation was announced almost a year after Metro announced their plan to open their first outlet in jakarta by 2012. Nevertheless, this action does not affect the plans of other foreign retailers to expand into Indonesia. Parkson retail asia (Pra) will open its first store in jakarta by September 2013, list of new committed tenants in the fUtUre retail centers after successfully negotiating a 10-year lease agreement for retail space at St. Moritz Mall, located in the Puri Indah, West jakarta. the stores, which will occupy 17,101 sq m of retail space, will target the upper-income market segment. the new Parkson store will complement Pras existing Centro department store brand, which has been operating in Indonesia for around eight years. the firm also plans to expand the Centro brand to other regions with rapid growth in the middle-class population.
shoppinG centres name St. Moritz Mall
location Puri Indah
reGion West jakarta
retailers Parkson
line of bUsiness Department Stores
size (sQ m)
statUs
17,101 Open in September 2013

pre-commitment leVel dUrinG 2011 - 2014 jakarta

Space absorbed 2014F 2013F 2012F 2011 0 100,000 200,000 300,000 annual Supply 2014F 2013F 2012F 2011 0 100,000 200,000 300,000
bodetabek
Space absorbed annual Supply
sq m
sq m
p. 30
Rental Rates and Service Charge

rental rates
rental rates in jakarta and bodetabek area
rp450,000 rp400,000 rp350,000 rp300,000 rp250,000 rp200,000 rp150,000 rp100,000 rp50,000 rp0 2005 2006 2007 2008 2009 2010 BoDetaBek
2011
1Q 2012
2Q 2012
jakarta
after having operated from 2009 to 2011, some malls which are targeted at the middle- to upper-class segment increased their rental rates during 2Q 2012. the increase is in line with the performance of the mall, i.e. those with less vacant space will ask for higher rents. Some newly-opened malls located in Gandaria, jalan Satrio and jalan S. Parman have reported that they will adjust the rental rates due to increasing occupancy. a shopping centre located in West jakarta which has done some renovation work has adjusted the asking rents upward. traffic flow to the mall will be one of criteria for the landlord to increase or maintain the current rents. an increase in the average asking rent was also seen at the middle-class malls. a shopping centre located in kramat jati, East jakarta repositioned itself by having a facelift, redesign, new interior works and improvement of the public facilities like tiles, toilets and elevators. With this additional capital expenditure, the shopping centre could attract branded retailers as their new tenants and increase the rental rates. Still in East jakarta, a long-operating
mall in jalan Pemuda has succeeded in raising the asking rental rates after maintaining high occupancy. Other ways to increase income in local currency (rupiah) is to adjust the pegged rate. the pegged rate is the nominal exchange rate of local currency against the US Dollar set by the shopping centre management and it is generally below market value. this pegged rate is used by quite a few malls. a mall located in Senen, Central jakarta adjusted their pegged rate by IDr500 compared to the previous quarter which increased the occupancy cost in rupiah become higher. Driven by increasing rental rates, the overall average asking rental rate in jakarta was IDr413,382/sq m/month. the rental rates are projected to go higher over the next period particularly due to the influx of new malls which come with higher offering rental rates above the average market. according to our records, the upcoming malls will have asking rental rates of between IDr400,000 and 500,000/sq m/ month when they are launched.
p. 31
rental rates of shoppinG centres in jakarta and bodetabek

rp800,000 rp700,000 rp600,000 rp500,000 rp400,000 rp300,000 rp200,000 rp100,000 rp0 2005 2006 2007 Middle Up 2008 2009 Middle 2010 2011 1Q 2012 2Q 2012
Middle Low
the average rental rates for Bodetabek also showed an increasing trend in 2Q 2012. For example, a mall in Bekasi has adjusted the pegged rate which increased the asking rent in rupiah. Some efforts were made to achieve higher rental rates. a mall in Depok and two
malls in tangerang increased the offering rental rates for the remaining leasable area. Overall, some of the rent changes have caused the rental rates in Bodetabek to go higher Q-o-Q to IDr252,159/sq m/month.
serVice charGe
In 2Q 2012, both jakarta and Bodetabek area saw an increase in the service charge from IDr545 to 640/sq m/month. In jakarta, the service charge was an average of IDr77,795/sq m/month while in the Bodetabek area the service charge is IDr60,956/sq m/month.
Outlook
the retail market has been gradually performing better with more leasing activities both in the operating and upcoming shopping centres. Landlords are generally quite concerned with the improving economy which leads to creating more retail sales and they are quite aware that amid increasingly high competition level in the market, they have to follow the dynamics of the market. thus, quite a few mall owners (in particular old malls) make capital expenditures to improve the looks of the mall, change the interiors, replace non-performing retailers and adjust the tenancy mix in order to attract more crowds so they can ask for higher rents. Even more, one strata-title retail owner is quite concerned with the low performance at the shopping centre and is willing to take unpopular action to save the performance and the image of the shopping centre. Indonesia, as the fourth largest population in the world, will remain as an interesting market for investors and retailers. New foreign retailers have invaded Indonesia and we will see more foreign retailers particularly from asian countries expand operations into this country.
p. 32
JAKARTA | 2q 2012 | industrial estate
Industrial Estate Sector
Supply
after several quiet periods, the industrial market saw new supply in 2Q 2012. at this point, kota Bukit Indah (Indotaisei) must develop their remaining land stock in order to fulfil their transaction commitment with one big automotive manufacturer. around 84 hectares of land should be ready; therefore, the landlord is rushing to deliver as scheduled. While the project is still under construction, the transaction was concluded, and we now recognise this as additional new serviceable industrial land. thus, the total serviceable industrial land in the six regions (Serang, tangerang, jakarta, Bekasi, karawang and Bogor) is now 8,750.3 hectares. the classic industrial supply issue remains the continuing enquiries for industrial land versus the limited stock of land on offer. For the last couple of years, land scarcity has been a major problem for most industrial estates, and the substantial surge in land demand is at the crux of this problem. It has been reported that, in certain industrial estates, potential buyers seeking industrial land come to the estate almost every day. Most of the time, this ends with no transaction because land is limited. In a landlords market such as this, developers like those located in Bekasi or karawang continue to sell raw land at the price of ready-to-use land. Buyers are taking the position of acquiring raw land at the current price anticipating a further increase when land is offered in a ready-to-use condition. they are now willing to buy raw land (at the ready-to-use price) and wait another year before the landlord delivers the land with all of the infrastructure. all in all, the land scarcity is anticipated, but it is seen as an opportunity to provide more land supply amidst mounting enquiries. For example, there is a plan to acquire around 200 hectares of land for an existing industrial estate located in the far west of jakarta. Similarly, there is also an expansion plan for a leading industrial estate on the east side of jakarta to expand an additional 150 hectares. In Serang, the new kawasan Industri terpadu MGM industrial estate indicated that they have plans to open in 2012 with around 662 hectares of land. However, they have yet to confirm a definite delivery timeline. Furthermore, the future overall industrial land stock is still significant. the only problem is that they are not ready to sell. Some property conglomerates such as Gajah tunggal Group, agung Podomoro Group, Lippo Group and jababeka are holding back land stock allocated for industrial use. agung Podomoro Group is planning to develop a total of 342 hectares of land for industrial use.
distribUtion of indUstrial land in siX reGions
Serang 21%
jakarta 10%
Bogor 2% Bekasi 26%
karawang 36%
tangerang 5%
p. 33
Demand
Since the beginning of the year, it was predicted that it would be difficult for total sales in 2012 to exceed those in 2011. thus far up to the first semester of year 2012, total industrial land sold amounts to 30% (180.21 hectares) of total sales in 2011. the main reason is not because of demand reduction, because demand is still strong. Limited land stock availability is the major issue, which will lessen total sales during the whole year. Like in the previous quarter, karawang remains the area with the most land being sold. kota Bukit Indah by Indotaisei registered the highest sales among others, followed by Suryacipta. total sales in karawang was actually higher this quarter than it was last. In Bekasi, total sales for the second semester is less than in the first quarter. Delta Silicon together with Greenland were quite consistent in terms of total land being sold. Meanwhile, jababeka still registered transactions, though they were smaller in scale than those of the previous quarter. In Serang, total sales this quarter reduced compared to the previous quarter, mainly because kIECs sales figures were one-third of what they were the previous quarter. Meanwhile, Modern Cikande recorded better sales this quarter. In total, karawang area sold a total of 118.63 hectares, which was 106.86 hectares more than what was recorded last quarter. Due to limited land supply, Bekasi only sold 49.16 hectares, which amounts to 71% of the total sales in 1Q 2012. Meanwhile, total sales in Serang was only 70% of the sales of the previous quarter.
annUal indUstrial land sales Up to 1h 2012

1400 1200 1000 hectares 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2012
land absorption dUrinG 2Q 2012

the substantial land sales in kota Bukit Indah by Indotaisei was mainly derived from one leading automotive company, astra Honda Motor (aHM). aHM is expanding its motorcycle plant, taking a total of 84 hectares of land in stages. this is so far the biggest industrial transaction up to the first semester this year. Other sizeable land transactions of 15 hectares occurred in kIIC, which sold to a US-based consumer product company for their expansion. Meanwhile, still in karawang area, Suryacipta sold several parcels of land comprising six different companies in the automotive industry and totalling 12.53 hectares. the other three transactions were attributed to a ceramics factory and building materials warehouses. In total, Suryacipta sold a total of 19.63 hectares, amounting to only 34% of the total sales of the previous quarter. In the Bekasi region, Delta Silicon led in the amount of land being transacted, with 28.06 hectares. again, transactions in Delta Silicon were dominated by industrial building developers who bought the land, built a small industrial building and sold. Other transactions were concluded by automotive parts companies and warehouse operators. In the second rank, Greenland continued to make deals with autoparts industry companies (six transactions), which altogether totalled 16.2 hectares. jababeka only sold a total of 1.3 hectares (8% of the total land sold in 1Q 2012) of land, comprising four small transactions of less than one hectare each. Four sectors are represented: manufacturing, plastic injection mould, trading and chemical supply. the smallest transaction recorded in Bekasi was MM2100, for 0.63 hectares of land for the expansion of an existing electronic parts manufacturer.
p. 34
another active region is Serang, where the two most active industrial estates operate. Modern Cikande saw a total transaction of 11.39 hectares mainly made by a japanese candy factory (3.57 hectares), a textiles factory (3.00 hectares), oil recycling facility (2.07 hectares), chemical plant (1.44 hectares) and other small workshops and warehouse companies. kIEC, owned by the biggest national steel producers, recorded a
total of four hectares of land comprising the expansion of two steel-related industries. kota Bukit Indah led the total automotive industry sales for 2Q 2012 . In second position was Delta Silicon, with 28.06 hectares. three other industrial estates with significant transactions were Suryacipta, Greenland kIIC and Modern Cikande.
land sales recorded dUrinG 2Q 2012 in each indUstrial estate

kota Bukit Indah (Indotaisei) Delta Silicon Suryacipta Greenland (kota Delta Mas) kIIC Modern Cikande krakatau Industrial Estate Cilegon jababeka MM2100 Industrial town 0 10 20 30 40 50 60 70 80 hectares
90
cUmUlatiVe sUpplY, demand and take-Up rates

10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Cumulative Supply (ha) Cumulative Demand (ha) 1Q 2Q 2012 2012 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
take-up rate (%)

p. 35
With more than 58% of the overall sales during the first half of 2012, automotive and related industries remained the key drivers for industrial land sales. Up to 2Q 2012, transactions concluded by automotive industries accounted for a total of around 230 hectares. the majority
tYpes of actiVe indUstries dUrinG 1h 2012
of land transactions by automotive and related industries occurred in either the Bekasi or the karawang area. Other dynamic industries during year in review included chemical, warehousing, steel-related, F&B, consumer goods, and manufacturing industries.
Steel-related 3.1% Pharmaceutical 1.0% Plastics 1.5% Food & Beverage 2.4%
Manufacturing Logistics/ 2.0% Warehouse Oil & Gas 4.1% 5.9%
Metal textiles 2.3% 0.3% Building Material 2.9% Developer 5.5% Others 6.2%
automotive 58.6%
Industrial Land Prices

Given a limited supply with continued demand, land prices rocketing by an average 32.4% Y-o-Y. the Serang region recorded the highest jump (26.3% Q-o-Q, or 37% Y-o-Y). Meanwhile, Bekasi registered only a 6.3 % increase this quarter (Q-o-Q) but the Y-o-Y change is significant at 70%. Likewise, in karawang, land prices increased moderately this quarter. the determinant factors (supply and demand performance) have kept industrial land prices in forward motion. Industrial estates in karawang keep increasing their land prices. In this quarter alone, the market has witnessed prices increase by 9.0% Q-o-Q. three industrial estates within karawang introduced new prices. Continuing enquiries combined with the scarcity of industrial land in this region has pushed developers to lift land prices. Meanwhile, Bekasi saw a modest percentage increase in land prices, at 6.3% Q-o-Q. this relatively small increase was due to the fact that land prices in this area are already higher than in other regions. three industrial estates initiated new land prices during the reviewed quarter. reviewing the overall figure for the full year, the price increase in Bekasi has gone up significantly. Furthermore, the Bekasi region commands the highest land prices compared to other regions. two major industrial estates (Modern Cikande and kIEC) in Serang drove the most significant changes in the price of industrial land. this time, both industrial estates were confident enough to introduce significant price increases. Compared to last quarter, prices rose by 26.3%. Price compared to the previous years (2011) figures were up by 37.0% in both estates. We anticipate that the continued wave of land price increases will still take place during the remainder of 2012.
p. 36
Greater jakarta indUstrial land prices

$180 $150
US$/sq m
$120 $90 $60 $30 $0 2006 Bogor 2007 2008 tangerang 2009 2010 2011 Bekasi 1Q 2012 Serang 2Q 2012
karawang
indUstrial maintenance cost
Overall, maintenance costs stood at the same level as last quarter. None of the operating industrial estates announced adjustments
Greater jakarta indUstrial land prices
$0.10 $0.08
US$/sq m/month
service charges during the quarter under review.
$0.06 $0.04 $0.02 $0.00 2006 Bogor 2007 2008 tangerang 2009 2010 2011 Bekasi 1Q 2012 Serang 2Q 2012
karawang
indUstrial land prices and maintenance costs*
region Lowest Bogor tangerang karawang Bekasi Serang

*1US$ = rp 9,300
Land Price (sq m) Highest US$ 161.29 US$ 161.29 US$ 150.00 US$ 225.81 US$ 107.53 average US$ 105.65 US$ 114.15 US$ 127.51 US$ 175.14 US$ 107.53
Maintenance Costs (/sq m/month) Lowest US$ 0.07 US$ 0.04 US$ 0.05 US$ 0.06 US$ 0.03 Highest US$ 0.08 US$ 0.11 US$ 0.06 US$ 0.07 US$ 0.05 average US$ 0.07 US$ 0.06 US$ 0.06 US$ 0.06 US$ 0.04
US$ 50.00 US$ 60.00 US$ 107.53 US$ 150.54 US$ 107.53
p. 37
Outlook
Up to the first semester of 2012, it is obvious to see that land availability remains the major issue holding back the industrial. total sales recorded during the first half of 2012 represented 30% of the total sales in 2011, meaning that total sales for 2012 are unlikely to match figures seen in 2011. Should the momentum of economic progress maintain through 2013, next years industrial land sales should be vibrant, because the combination of the influx of new industrial land would be well counterbalanced with continued enquiries from growing companies.
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colliers international indonesia: World trade Centre 10th & 14th floor jalan jenderal Sudirman kav. 29 - 31 jakarta 12920 Indonesia tel 62 21 521 1400 faX 62 21 521 1411 Michael Broomell Managing Director World trade Centre 10th & 14th floor jalan jenderal Sudirman kav. 29 - 31 jakarta 12920 Indonesia tel 62 21 521 1400 ext 131 faX 62 21 521 1411 Ferry Salanto associate Director, research World trade Centre 10th & 14th floor jalan jenderal Sudirman kav. 29 - 31 jakarta 12920 Indonesia tel 62 21 521 1400 ext 134 faX 62 21 521 1411
Copyright 2012 Colliers International the information contained herein has been obtained from sources deemed reliable. While every reasonable effort has bee made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
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Jakarta Colliers Market Report 2Q 2012

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Jakarta Colliers Market Report 2Q 2012

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2Q 2012 i the knowledge

jakarta rEaL EStatE

research & forecast report

Property Sector Overview

eXpatriate hoUsinG sector

indUstrial estate sector

JAKARTA | 2q 2012 | oFFiCe

JAKARTA | 2q 2012 | oFFiCe

cbd annUal office sUpplY based on marketinG scheme

JAKARTA | 2q 2012 | oFFiCe

oUtside cbd annUal office sUpplY based on marketinG scheme

Colliers International Indonesia - research

JAKARTA | 2q 2012 | oFFiCe

tb simatUpanG office sUpplY

JAKARTA | 2q 2012 | oFFiCe

fUtUre office bUildinGs

projected completion time

oUtside cbd area (exclude tb simatUpanG)

JAKARTA | 2q 2012 | oFFiCe

projected completion time

Colliers International Indonesia - research

cUmUlatiVe sUpplY, demand and occUpancY of office space in the cbd

JAKARTA | 2q 2012 | oFFiCe

oUtside the cbd

JAKARTA | 2q 2012 | oFFiCe

space aVailable and committed in 2011 - 2014 cbd

Rental Rates, Service Charge and Prices

$30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Grade C

JAKARTA | 2q 2012 | oFFiCe

strata-title office space for sale cbd

JAKARTA | 2q 2012 | apartment

Colliers International Indonesia - research

sUpplY distribUtion of strata-title apartments in jakarta bY reGion

East jakarta 5.5%

North jakarta 18.9%

South jakarta 18.2%

JAKARTA | 2q 2012 | apartment

newlY - laUnched apartments in 2Q 2012

#Units 1,400 1,200 300 420 225 151 500

Colliers International Indonesia - research

JAKARTA | 2q 2012 | apartment

condotel projects based on operator based on reGion

Wyndham 10% Whiz 10%

East jakarta 40%

CBD 20% Central jakarta 10%

Best Western 20%

North jakarta 10%

South jakarta 20%

Colliers International Indonesia - research

aVeraGe take-Up rates in different reGion

82.6% 79.7% 77.9%

85.6% 79.7% 78.6%

Colliers International Indonesia - research

JAKARTA | 2q 2012 | apartment

take-Up of pre-sales apartments in different reGions

Colliers International Indonesia - research

comparison of take-Up rates between eXistinG and pre-sales apartments

Colliers International Indonesia - research

take-Up of operatinG apartments in different reGions

Colliers International Indonesia - research

JAKARTA | 2q 2012 | apartment

askinG prices for apartments in jakarta

aVeraGe askinG price in different reGions

CBD South jakarta Outside CBD average