Research &

Forecast Report
Accelerating success.

The strong sales performance of under-construction

apartment projects continued to trigger increases in the
average asking price to IDR24.4 million / sq m or a 2.5%
increase q-o-q. The CBD fetched the highest average
price at IDR 38.3 million / sq m, an increase of 5.8% q-o-q
while the average price in South Jakarta was registered at
IDR 26.7 million / sq m, which grew by 3.2% from the last
quarter. Not only price, but the average gross rental rate of
apartments for lease located in the CBD and South Jakarta
also trended upward by 3.4% compared to the previous
quarter in anticipation of the increase in the operational
costs and was recorded at USD26.56 / sq m/month.
- Ferry Salanto, Associate Director | Research

Apartment for
Strata-title
Supply
By the end of 1Q 2014, the cumulative supply of strata-title
apartments in Jakarta grew at a moderate pace. The market
received 1,246 new units, up by 0.9% QoQ, from the hand-over
of several projects like Kemang Village (The Infinity Tower),
Pakubuwono Terrace (North Tower), Sherwood Apartment
(Wellington Tower) and Woodland Park (Matoa Tower). These
1,246 units, or 7.27% of the total projected 20,889 units that
will be completed this year, are scattered in South and North
Jakarta. The Infinity Tower is the fifth tower being handed over
out of a total of seven towers at Kemang Village Residences. The
Pakubuwono Terrace (North Tower) and Woodland Park (Matoa
Tower) are brand new projects that are expecting to see more
new towers in the next few years. In North Jakarta, Sherwood
Residence, located in the Kelapa Gading area, had a new tower

completed during the quarter, called Wellington Tower. This

project is considered one of the upper-class developments in
that area.
Not all apartment projects are completed at the scheduled
time. Some experience slow finishing work and are likely to be
rescheduled to 2Q or even 3Q 2014.
The outlook for 2014 was predicted to be tough, particularly given
the nationwide elections that could impact business decisions.
The Central Banks policy to increase its benchmark interest rate
and the minimum loan-to-value (LTV) caps for housing loans
from 80 to 70%, and 60% for second mortgage loans, and 50%
for third mortgage loans has dampened property acquisition. In
addition, banks are restricted from extending loans used as down
payments for home purchases. These measures are expected
to reduce demand on residential properties for investment or
speculation, instilling more prudent lending and a common
prudential standard among banks.

List of Completed Projecs During 1Q 2014

development

location

region

Developer

No. of Units

latest offering
price per sq m

Kemang Village (The Infinity)

P. Antasari

South Jakarta

Lippo Karawaci

175

IDR30 million

Pakubuwono Terrace (Tower North)

Kebayoran Lama

South Jakarta

PT Selaras Mitra Sejati

750

IDR15 million

Sherwood Apartment (Wellington)

Kelapa Gading

North Jakarta

Summarecon

100

IDR22 million

Woodland Park (Matoa tower)

Kalibata

South Jakarta

Group Kalibata

221

IDR16 million

Source: Colliers International Indonesia - Research

Nevertheless, the abovementioned condition did not stop

developers from launching new projects, as was seen in the first
quarter of 2014. In fact, there are 14 newly launched projects
scattered in four areas of Jakarta including the CBD, East Jakarta,
South Jakarta, and West Jakarta. From the total of 5,286 new
apartment units, South Jakarta contributes the largest at 41.5%,
followed by West Jakarta at 36%, while the CBD area contributes
only 22.5% from three apartment projects. These new projects
are expected to be completed in the next two or four years. Some
projects will have more than two towers that will be built in stages
and therefore the completion time will take more than two years.
The South Jakarta and West Jakarta areas are expecting to see
abundant apartment projects over the next three to four years.

Some of the projects in South Jakarta are located in expatriate

community locations, like Pondok Indah and Pangeran Antasari
and therefore quote high prices compared to other non-prime
locations like Pasar Minggu, Pejaten and Kebayoran Lama. Most
of the projects in West Jakarta aim at the mid-low segment,
characterised by a large number of units at a project and a
relatively affordable price. Some projects in good locations are
offered at higher prices. West Jakarta has been seeing many
ongoing property developments including offices, apartments,
and shopping centres. Underpinned by good infrastructure, like
the toll roads connecting the area to the airport, West Jakarta
continues to appeal to property investors.

Newly Launched* Apartments During 1Q 2014

development

location

region

expected completion
time

no. of units

asking price
per sq m

Verde Two (2 Towers)

Rasuna Said

CBD

304

2016

IDR37 million

Anandamaya Residence (3 Towers)

Sudirman

CBD

500

2017

IDR50 million

Gayanti City Apartment (Tower I)

Gatot Subroto

CBD

198

2016

IDR33 million

Domaine (Tower I)

Sudirman

CBD

186

2017

IDR38 million

Bellevue Place Apartment

MT Haryono

South Jakarta

128

2016

IDR31 million

Kebayoran Icon

Kebayoran Lama

South Jakarta

256

2016

IDR19 million

One Otium

Antasari

South Jakarta

160

2017

IDR30 million

Kartika Residence (3 Towers)

Pondok Indah

South Jakarta

800

2018

IDR40 million

Foresque Apartment (3 Towers)

Pasar Minggu

South Jakarta

650

2017

IDR16 million

The Batik @ Pejaten

Pejaten

South Jakarta

200

2017

IDR15 million

Maqna Residence

Meruya

West Jakarta

380

2017

IDR17 million

Vittoria Residence (3 Towers)

Daan Mogot

West Jakarta

1,100

2017

IDR14 million

Wang Residence

Kedoya

West Jakarta

250

2017

IDR27 million

Veranda

Kembangan

West Jakarta

174

2016

IDR19 million

Note: * Newly Launched is when a new apartment development has secured development permit and is only officially introduced and offered in the market.
Source: Colliers International Indonesia - Research

Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

The Distribution of Newly Launched Apartment by

Number of Units

CBD
22.5%

Supply of new apartment units during 2014 will be substantial,

i.e. 20,889 units, and will continue in 2015 when the market
is expected to see another 24,228 units. All in all, the total of
apartments projected to come onto the market from 2014 - 2017
will be 62,197 new units, mainly supplied by West Jakarta with
22.4% of the total supply, followed by Central and South Jakarta
with 20.4 and 20.2%, respectively.

South
Jakarta
41.5%

West
Jakarta
36.0%

Source: Colliers International Indonesia - Research

New Supply Pipeline (2014 - 2017)

Apartment name

location

region

no. of units

2014

Woodland Park (Matoa tower) (1Q)

Kalibata

South Jakarta

221

Pakubuwono Terrace (Tower North) (1Q)

Kebayoran Lama

South Jakarta

750

Sherwood Residence (Wellington) (1Q)

Kelapa Gading

North Jakarta

100

Kemang Village (The Infinity) (1Q)

Antasari

South Jakarta

175
234

Ambassade Residence Tower A

Puri Denpasar

CBD

Raffles Residences

Satrio

CBD

64

MyHome Apartment at Ciputra World

Satrio

CBD

136

Setiabudi Sky Garden (tower 1)

Rasuna Said

CBD

426

Verde Apartment (Tower East)

Rasuna Said

CBD

114

Pasar Baru Mansion (2 towers)

Pasar Baru

Central Jakarta

Elpis Residence

Gunung Sahari

Central Jakarta

791

Capitol Park Apartment

Salemba

Central Jakarta

1,700

The Mansion at Dukuh Golf Residence (Aurora Tower)

Kemayoran

Central Jakarta

522

The Mansion at Dukuh Golf Residence (BellaVista Tower)

Kemayoran

Central Jakarta

612

520

The Green Pramuka (Tower Chrysant)

Pramuka

Central Jakarta

1,000

The Green Pramuka (Tower Bougenville)

Pramuka

Central Jakarta

1,000

Sentra Timur Residence II (2 Towers)

Pasar Rebo

East Jakarta

Titanium Square

Pulo Gebang

East Jakarta

725

The Hive @ Tamansari

Cawang

East Jakarta

422

810

Sherwood Residence (Regent)

Kelapa Gading

North Jakarta

100

Pluit Seaview (Tower Maldives)

Pluit

North Jakarta

940

Gading Greenhill

Pegangsaan Dua

North Jakarta

700

Northern Ancol Residence

Ancol

North Jakarta

800

La Venue - South Tower

Pasar Minggu

South Jakarta

341
400

Kemang Village (The Intercon)

Antasari

South Jakarta

The East at Essense Complex Dharmawangsa

Dharmawangsa

South Jakarta

244
continued

Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

Apartment name

location

region

no. of units

continuation
The Aspen at Admiralty

Fatmawati

South Jakarta

860

Pakubuwono Terrace (Tower South)

Kebayoran Lama

South Jakarta

720

The Pakubuwono Signature

Pakubuwono

South Jakarta

188

Senopati Penthouse

Senopati

South Jakarta

63

LA City Apartment (Tower A)

Lenteng Agung

South Jakarta

980

La Maison Barito

Barito

South Jakarta

80

Botanica Apartment (3 Towers)

Simprug

South Jakarta

626

The Bellevue at Pondok Indah

Pondok Indah

South Jakarta

40

Green Central Tower Cerberra

Gajah Mada

West Jakarta

420

The Windsor (Tower I)

Puri Indah

West Jakarta

176

The Windsor (Tower II)

Puri Indah

West Jakarta

164

Sky Terrace Lagoon

Kalideres

West Jakarta

525

Metro Park Residence

Kebon Jeruk

West Jakarta

1,200

Green Palm Residence @ Puri

Kosambi

West Jakarta

1,000

East Park Apartment (Tower C)

KRT Radjiman

East Jakarta

550

The Residence (CWJ 2)

Satrio

CBD

119

The Orchad Satrio (CWJ 2)

Satrio

CBD

349

Setiabudi Sky Garden (tower 2)

Setiabudi

CBD

160

The Suite (W Hotel Tower)

Satrio

CBD

200

T - Plaza Residence (Tower B)

Pejompongan

Central Jakarta

500

Menteng Park

Cikini

Central Jakarta

756

The Grreen Pramuka (Tower Orchid)

Pramuka

Central Jakarta

1,000

2015

The Grreen Pramuka (Tower Penelope)

Pramuka

Central Jakarta

1,000

The Green Pramuka (Tower Scarlet)

Pramuka

Central Jakarta

1,000

Eastonia

Jatiwaringin

East Jakarta

312

Green Signature Apartment

MT. Haryono

East Jakarta

800

Bassura City (Tower Flamboyan)

Basuki Rahmat

East Jakarta

1,000

Bassura City (Tower Edelweiss)

Basuki Rahmat

East Jakarta

1,000

Bassura City (Tower Dahlia)

Basuki Rahmat

East Jakarta

1,000

Bassura City (Tower Cattleya)

Basuki Rahmat

East Jakarta

600

Bassura City (Tower Alamanda)

Basuki Rahmat

East Jakarta

600

Teluk Intan (Tower Saphire)

Teluk Gong

North Jakarta

1,100

Tifolia Apartment

Perintis Kemerdekaan

North Jakarta

500

Pluit Seaview (Tower Belize)

Pluit

North Jakarta

300

Callia Apartment

Perintis Kemerdekaan

North Jakarta

560

The Oakwood Sky Garden (2 Towers)

Pluit

North Jakarta

700

Pluit Seaview (Tower Ibiza)

Pluit

West Jakarta

500

Pluit Seaview (Tower Bahama)

Pluit

South Jakarta

650

Green Bay Pluit (Sea View)

Pluit

North Jakarta

2,072

Kemang Village - The Bloomington

Antasari

South Jakarta

150

The Royal Olive Residence Tower I

Buncit Raya

South Jakarta

225

Woodland Park (Cendana Tower)

Kalibata

South Jakarta

218

Senopati Suites 2

Senopati

South Jakarta

81

1 Park Avenue

Gandaria

South Jakarta

279

Nine Residence

Warung Buncit

South Jakarta

246

Providence Park

Permata Hijau

South Jakarta

114
continued

Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

Apartment name

location

region

no. of units

continuation
Kencana Residence

Pondok Indah

South Jakarta

173

District 8 (Tower Eternity)

Senopati

South Jakarta

400

District 8 (Tower Infinity)

Senopati

South Jakarta

280

Izzara Apartment (2 Tower @ 225 unit)

TB. Simatupang

South Jakarta

450

Lexington Rersidence (Tower 1)

Pondok Pinang

South Jakarta

270

Lexington Rersidence (Tower 2)

Pondok Pinang

South Jakarta

270

The Aspen Peak at Admiralty

Fatmawati

South Jakarta

644

Belmont Residence (Tower Montblanc)

Meruya Ilir

West Jakarta

350

Gianetti Apartment

Kemanggisan

West Jakarta

500

St. Moritz (New Presidential Tower)

Puri Indah

West Jakarta

150

Satu8 Residence

Kedoya

West Jakarta

174

The Nest Apartment

Meruya Utara

West Jakarta

1,100

Point 8 (Air Crew Tower)

Daan Mogot

West Jakarta

546

Gallery West

Kebon Jeruk

West Jakarta

280

St Moritz (The New Ambassador Suite Tower)

Puri Indah

West Jakarta

200

The H Residence

MT Haryono

East Jakarta

383

Sudirman Suites

Sudirman

CBD

380

Senopati Suites 3

Senopati

South Jakarta

Signature Park Grande

MT Haryono

East Jakarta

Grand Pakubuwono Terrace

Kebayoran Lama

South Jakarta

Sentosa Residence

Cempaka Putih

Central Jakarta

687

Gold Coast Apartment (Atlantic Tower)

Pantai Indah Kapuk

North Jakarta

568

2016

54
1,100
435

Grand Pancoran

Pancoran

South Jakarta

120

Sudirman Hill Residence

Karet

Central Jakarta

255
380

Apartment Pejaten Park Residence

Warung Buncit

South Jakarta

Belmont Residence (TowerAthena)

Meruya

West Jakarta

165

Four Winds

Permata Hijau

South Jakarta

122

Capitol Suites

Prapatan Raya

Central Jakarta

327

Puri Mansion Apartment (Tower A)

Puri Kembangan

West Jakarta

900

Madison Park

Tanjung Duren

West Jakarta

1,200

Gayanti City (2 Towers)

Gatot Subroto

CBD

318

Verde Two (Tower 1)

Rasuna Said

CBD

152

Verde Two (Tower 2)

Rasuna Said

CBD

152

Bellevue Place

Tebet

South Jakarta

128

Kebayoran Icon

Kebayoran Lama

South Jakarta

256

Veranda

Pesanggrahan

West Jakarta

174

Regatta London Tower

Pantai Mutiara

North Jakarta

276

Central 88 (2 Towers)

Kemayoran

Central Jakarta

612

Holland Village

Cempaka Putih

Central Jakarta

400

2017

Domaine

Sudirman

CBD

186

Rosewood Residences

Satrio

CBD

160

Skyline Residence (2 Towers)

DI Panjaitan

East Jakarta

481

Kemang Penthouse

Kemang

South Jakarta

262

The Foresque

Pasar Minggu

South Jakarta

600
continued

Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

Apartment name

location

region

no. of units

continuation
Puri Orchad (3 Tower)

Kembangan

West Jakarta

The Langham Residences

Senopati

South Jakarta

3,000

Anandamaya Residences (3 towers)

Sudirman

CBD

Maqna Residence

Meruya

West Jakarta

380

Vittoria Residence (3 tower)

Daan Mogot

West Jakarta

1,100

One Otium Residence

Antasari

South Jakarta

160

Wang Residence

Kedoya

West Jakarta

250

The Batik @ Pejaten

Pejaten

South Jakarta

200

57
500

Source: Colliers International Indonesia - Research

Distribution of Future Annual Apartment Unit

Supply by Area
30,000
25,000
20,000
15,000
10,000
5,000
0
2014F

2015F

2016F

2017F

CBD

Central Jakarta

South Jakarta

North Jakarta

East Jakarta

West Jakarta

Source: Colliers International Indonesia - Research

Demand
Up until March 2014, sales activity in the Jakarta apartment
market remain stable. The take-up rate of existing strata-title
apartments in Jakarta reached 94.3%, up by 1% while the presales activities from the on-going projects recorded a 72.6%
take-up rate, falling by 1.5% from the previous quarter. The
substantial newly launched apartment supply in 1Q 2014 has
reduced the take-up figure of pre-sales apartments this quarter,
however continued absorption of the new units has maintained
a relatively healthy take-up rate. In general, the overall take-up
rate for both existing apartments and pre-sales apartments was
steady at 86.1%.

Overall, the take-up rate in Jakarta demonstrated an increasing

trend with the exception of the CBD area that posted a moderate
decrease compared to the previous quarter. With abundant new
projects during the quarter but mediocre absorption, the CBD
area saw a downswing in the take-up rate trend, by 4% QoQ.
South Jakarta and non-prime areas continued to show an upward
trend, due to some on-going projects showing progressive
construction activities and offering a relatively affordable price
compared to the CBD area. Several newly launched projects
in middle- to upper-class locations, such as Menteng, Pejaten,
Puri Indah, Kemang and Pondok Indah, applied NUP (nomor
unit pemesanan or an offer to book a reserved unit) due to high
demand within those areas. This way, developers will disseminate
NUP to their loyal customers and other potential buyers who can
choose good units (usually located on a preferred floor or with
the best view, etc.). Interested buyers will then have to deposit
a certain amount of money (ranging from IDR20 to 50 million,
depending on the class of the apartment) to get the priority to
book the desired units.
The Menteng, Pejaten, Puri Indah, Kemang and Pondok Indah
areas are popular residential areas (except for Puri Indah)
for Jakartas expatriate community as they are surrounded
by supporting facilities like modern malls, international
schools, different chains of supermarkets and other service
establishments.
There were several promotional programmes offered during the
first quarter benefiting the moments like Chinese New Year and
Valentine. Other promotional campaigns to entice buyers are
nothing special and continue to copy previous promotions like
free holidays to Bali, gold rewards, electronic gadgets or furniture
to furnish the apartment units.

Average Take-Up Rate Performance in Different

Location (%)
Area

1Q 2013

4q 2013

QoQ change

YoY change

CBD

88.2%

97.1%

93.2%

-3.9%

5.0%

South Jakarta

87.8%

88.9%

90.0%

1.1%

2.2%

Non-Prime Area

80.3%

83.1%

83.3%

0.2%

3.0%

Source: Colliers International Indonesia - Research

1Q 2014

Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

The combination of a hike in the key interest rate, stricter

mortgage regulations and wavering consumer confidence has
led to widespread speculation that the property market is headed
for a plateau and will affect the slowing demand for apartments.
In fact, developers have always found ways to accelerate sales,
among them providing flexibility in terms of payment. Various
payment schemes were offered by developers to maintain sales
activity at a good pace. Such payment schemes enable buyers
who have limited access to banking and who are buying a home
for the second or third time. Some strategies that are used by
developers to lure buyers are:

Flexible down payment scheme. The amount of down

payment of 30 to 50% of the total apartment price can be paid
by instalment from 12 to 35 times directly to the developers.
The remaining payment is paid upon the construction
of the project through mortgage (KPA : Kredit Pemilikan
Apartemen);
Cash instalment. Conventionally, the duration of instalments
is the same as the construction progress of the development,
i.e. 24 to 36 instalments;
Long instalment. This payment scheme has a longer
duration than cash instalment and can be applied after the
construction is done. Similar to cash instalment, buyers
have to pay monthly up to 60 times (5 years) directly to
the developer. Consequently, the price for this payment
method is higher than the normal price, i.e. 15 to 20% more
expensive;
Hard cash scheme. Full payment at one time. Typically the
developer will give a special discount of around 10 to 15% off
the published rate.

Colliers survey of payment methods chosen by apartment buyers

was conducted in 40 apartment projects under construction.
This revealed that cash instalment payment was opted for
by most buyers even in mid-low apartment projects. Only 5
to 20% of buyers of mid-low apartment units use a mortgage
facility. Most of the buyers in this segment pay cash instalments.
Similarly, in the middle segment, the majority of buyers chose
cash instalment payments. However, we still see that in several
projects most buyers opted for bank financing instead of cash
instalments. In the upper-class segment, again, cash instalments
was preferred by most buyers, but interestingly, the portion of
those paying hard cash was also quite significant.

Preferred Payment Method for Apartment Buyer

KPA
(mortgage)
16%

Hard Cash
21%
Cash
Installment
63%

Source: Colliers International Indonesia - Research

Asking Price
Strata-title apartment prices continue to trend upward along
with the escalation of land prices and the construction progress
of the projects. As of 1Q 2014, the average price of strata-title
apartments in Jakarta was IDR24.4 million per sq m an increase
of 2.45% compared to the previous quarter. Overall, the average
asking price in the apartment market in Jakarta has increased
by 46% in three years. Particularly in the CBD area, in the same
period, apartment prices have appreciated by 75%, while in
South Jakarta it was 60%.

Average Asking Price (per sq m) of Apartments in

Jakarta
IDR 45,000,000
IDR 40,000,000
IDR 35,000,000
IDR 30,000,000
IDR 25,000,000
IDR 20,000,000
IDR 15,000,000
IDR 10,000,000
IDR 5,000,000

CBD

South Jakarta

Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

1Q2014

4Q2013

3Q2013

2Q2013

1Q2013

4Q2012

Non-Prime Area

Source: Colliers International Indonesia - Research

3Q2012

2Q2012

1Q2012

4Q2011

3Q2011

2Q2011

IDR 0
1Q2011

Banks are more prudent in financing apartment unit ownership,

particularly when the construction progress is slow. In some
cases, developers will direct buyers to pay cash instalments,
particularly for the off-plan projects. On the other hand, buyers
for investment will pay cash instalments during construction,
primarily if they are not the first buyer of apartment unit because
the new LTV regulations require a higher percentage of down
payment for a second purchase. Those with cash capability will
find paying by cash instalments less of a hassle.

Average

Overall, the CBD area fetched the highest average asking price
of IDR38 million psm as well as the highest increment of 5.8%
QoQ. Land scarcity in the CBD area was the main driving force
for apartment prices in this area to accelerate quickly. The
newly launched projects in the CBD area, which mostly provide
better building quality, use more imported materials, and offer
a private residential concept are offered at a minimum of IDR33
million per sq m to a maximum of IDR60 million per sqm. The
under-construction projects are quoted from IDR42 to 65 million
psm. This high offering price occurred because all new projects
located in the CBD area are classified as upper to luxury class
apartments. In other areas, like South Jakarta, which still have
adequate vacant land to be developed, a moderate growth of
3.2% in prices occurred, which brought the average price for the
region to IDR26.7 million per sq m. The key triggers for the price
increase were some factors like the commencement of several
good projects in well-established locations, such as Kemang,
Permata Hijau, and Pondok Indah as well as continuing progress
of the under-construction projects. Apart from those premium
areas in South Jakarta, there are some new apartment projects
in areas like Mampang, Kebayoran Lama, and Pasar Minggu
that introduced prices below the average market, ranging from
IDR17 to 20 million per sq m and targeting the mid-low to midupper segment. In the interim, non-prime areas including West
Jakarta, North Jakarta, East Jakarta and Central Jakarta, recorded
an increase of 2.8% to IDR18.8 million per sq m. There are some
factors that led to the increase in prices, like the good sales
performance showed by ongoing projects and the added value
that the apartment projects offer like good building materials
and more facilities different from other developments.

Average Asking Price in Different Sub-Markets

(in IDR)
Area

1Q 2013

4q 2013

1Q 2014

YoY

QoQ

change

change

5.8%

CBD

32,619,752

36,174,524

38,282,223

17%

South Jakarta

22,455,876

25,854,554

26,687,843

19%

3.2%

Non-Prime Area

16,350,089

18,298,766

18,819,110

15%

2.8%

Apartment for Lease

Supply
There was eventually one serviced apartment project
completed in 1Q 2014 after a dormant situation for the last four
consecutive quarters. The only apartment for lease this quarter
is Fraser Residence Menteng, featuring 128 serviced apartments
comprised of studio to duplex penthouse units. The opening of
Fraser Residence Menteng brought the total supply of Jakartas
apartments for lease to 8,334 units, comprising 57% serviced
apartments and 43% non-serviced apartments.
Fraser Residence Menteng is part of Frasers global network of
serviced residences and is the second development by Fraser
after Fraser Residence Sudirman, which opened in June 2011. In
the next two years, the group is on course to manage two more
developments in Jakarta, including Fraser Place Setiabudi (2015)
and Fraser Suites Kuningan (2016).
In fact, Frasers Hospitality and Ascott Limited are two worldwide
serviced apartment operators that are very active in Jakarta.
Frasers Hospitality will have four properties in operation in
the CBD area, while Ascott Limited will have a total of five
properties scattered around the CBD and South Jakarta in the
next two years. Ascott Limited operates the four-star equivalent
Somerset Serviced Residence and five-star equivalent Ascott The
Residence brands. Fraser Hospitality operates Fraser Place and
Residences in the same categories. All four products are found
in city or business locations and have fully equipped kitchens (or
kitchenettes), laundry and reception facilities.

Source: Colliers International Indonesia - Research

List of Apartments Operated by Frasers Hospitality and Ascott Limited

Name of development

The Ascott Residence

year of operation

operator

location

Jl. Kebon Kacang

Ascott Limited

Somerset Grand Citra

1996

Ascott Limited

Jl. Prof Dr Satrio

Serviced Apartment

Countrywoods Residence

1996

Ascott Limited

Jl. WR Supratman, Ciputat

Serviced Apartment

Serviced Apartment

Somerset Berlian

2006

Ascott Limited

Jl. Permata Berlian 3

Serviced Apartment

Fraser Residence Sudirman

2011

Frasers Hospitality

Jl. Setiabudi Raya No. 9

Serviced Apartment

Citadines Rasuna Jakarta

2013

Ascott Limited

Jl. H.R. Rasuna Said Kav.20

Condotel

Fraser Residence Menteng

2014

Frasers Hospitality

Jl. Menteng Raya

Serviced Apartment

Ascott Kuningan Jakarta

2014

Ascott Limited

Jl. Prof Dr Satrio

Serviced Apartment

Fraser Place at Setiabudi Sky Garden

2015

Frasers Hospitality

Jl. Karbela Selatan

Serviced Apartment

Somerset Kencana Jakarta

2015

Ascott Limited

Jl. KHM Syafi'I Hadzami

Condotel

Fraser Suites at Ciputra World Jakarta 2

2016

Frasers Hospitality

Jl. Prof Dr Satrio

Serviced Apartment

Source: Colliers International Indonesia - Research

type

1995

Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

In addition to those international operators, there are some

active local serviced apartment operators like Aditya Mansion,
Sultan Residence, Pondok Indah Golf, and Kemang Oktroi.
There will be one serviced apartment project in Cilandak
- South Jakarta, which is expected to open in 4Q 2014.

This project, called TBS Linera Serviced Apartments, has yet to

decide the number of units to be released to the market. The
owner of this project is a local operator who has experience
in developing townhouses as well as housing complexes for
expatriates.

List of Apartments Developments in the Future

Name of development

year of operation

location

region

no. of units

TBS Linera Apartment Service

2014

Jl. Intan No. 25 Cilandak Barat

South Jakarta

Ascott Kuningan Jakarta

2014

Jl. Prof Dr Satrio

CBD

TBA *
170

Fraser Place at Setiabudi Sky Garden

2015

Jl. Karbela Selatan

CBD

150

One Park Avenue

2015

Jl. KHM Syafi'I Hadzami

Sout Jakarta

60

La Maison Barito Serviced Apartment

2015

Jl. Barito

Sout Jakarta

80

Oakwood at District 8 Senopati

2016

Senopati

Sout Jakarta

180

Fraser Suites at Ciputra World Jakarta 2

2016

Jl. Prof. Dr. Satrio

CBD

200

Note: *TBA: to be announced

Source: Colliers International Indonesia - Research

Occupancy
In general, the apartment for lease market in Jakarta saw a minor
drop in the occupancy rate from 76.6 to 75.8% this quarter. The
occupancy level for non-serviced apartments was steady from
the previous quarter at 78.4%, while the serviced apartment
projects eased moderately from 72.7% last quarter to 70.5% as
some projects reported that a number of their existing expatriate
tenants had completed their employment contracts and had to
leave the country.

mining) are considering purchasing a certain amount of stratatitle apartment units for their expatriate base (generally the
engineer level). Instead of renting serviced apartments, owning
the strata-title apartment units will be more beneficial for the
company as the asset value is expected to grow.

Number of Expatriates Working in Indonesia

2011
#Expatriates

2012

77,307

2013

72,427

68,957

Source: Ministry of Manpower & Transmigration

Occupancy Level of Non-Serviced Apartments (%)

Area

4q 2013

1Q 2014

QoQ change

CBD

82.37%

84.07%

1.70%

South Jakarta

79.02%

78.05%

-0.96%

Non-Prime Area

75.99%

75.86%

-0.13%

Source: Colliers International Indonesia - Research

Occupancy Level of Serviced Apartments (%)

Area

4q 2013

1Q 2014

QoQ change

CBD

79.00%

78.84%

-0.16%

South Jakarta

77.01%

76.12%

-0.89%

Non-Prime Area

56.44%

51.88%

-4.56%

Source: Colliers International Indonesia - Research

Overall, there are some factors affecting the softening of demand

in the serviced or non-serviced apartment market. One is
the decree of the Ministry of Manpower and Transmigration
(Number 4, Year 2012) controlling the number of foreign
workers in 19 specific job positions. The number of expatriates
working in Indonesia has declined in the last three years.
Another factor is the amount of new stock at strata-title
apartment projects located in premium areas and suitable to
expatriates requirements. This is expected to exert pressure on
the occupancy level of apartments for lease. Based on our survey
of the marketing teams of some serviced apartments, quite a
few multinational companies (e.g. pharmacies, oil and gas, and

Rental Rates
Overall, the asking rental rate of apartments for lease increased
during the early part of 1Q 2014 in anticipation of the increase in
utility tariffs, especially electricity. The increase in the rental rate
was mainly experienced by the preeminent serviced apartments
in the CBD, such as Shangri-La, Frasers, Ritz-Carlton, and the
Ascott Groups apartments, with an average increase between
US$100 and 300 per unit per month. As mentioned earlier,
several apartments for lease, especially serviced apartments,
have anticipated adjusting their asking rental rates upward
in response to inflation and to the increase in the regional
minimum wage.

Average Asking Rental Rate in Different Areas

Rental Rate
per sq m per month
Area

4q 2013

1Q 2014

change
QoQ

YoY

CBD including South

Jakarta

US$26.56

US$27.58

3.85%

12.99%

Non-Prime Areas

US$15.49

US$15.64

0.76%

6.08%

Source: Colliers International Indonesia - Research

Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

The overall increase in the rental rate was mainly underpinned

by prominent serviced apartments in the CBD (including
South Jakarta) that posted an average rent of USD33.20 per sqm
per month. In the same areas, the non-serviced apartments
quoted cheaper rates at an average of USD17.70 per sqm per
month. Serviced apartments located in the non-prime areas
reached USD26.60 per sq m per month, while the non-serviced
apartments charged lower at USD12.70 per sq m per month.

Concluding Thought

Average Rental Rates of Apartment for Lease

The demand for strata-title apartments over the past three years
has been quite resilient as Jakartans have taken to inner-city
living. Despite the dismal outlook of Jakartas apartment market
projected early in 2014, developers formulated ways to get around
the obstacles, such as providing flexible terms of payment.
Such measures effectively maintain the level of apartment
absorption because buyers are motivated to buy off-plan
projects in anticipation of greater capital gains. Notwithstanding
the continued apartment transactions, the market needs more
occupancy to stay healthy. The ideal situation is when the units
are bought by occupiers or by investors when the leasing market
is healthy.

$30.00
$25.00
$20.00
$15.00
$10.00
$5.00

CBD
Source: Colliers International Indonesia - Research

Non CBD

1Q 2014

4Q2013

3Q2013

2Q2013

1Q2013

4Q2012

3Q2012

2Q2012

1Q2012

4Q2011

3Q2011

2Q2011

1Q2011

$0.00

The increase in the interest rates, as well as stricter mortgage

regulations, has undoubtedly had an impact on the apartment
market that had been benefitting from the cheap credit over the
last few years. In fact, in the first quarter of 2014, some developers
were confident enough to launch their new projects targeting
mostly the middle-upper segment.

The steep price increases that we have seen over the last three
years are likely to soften as the market digests the new economic
reality but the long-term trend into high-rise living is very
much here to stay, and with the prices still very low by regional
standards, there remains plenty of upside in the years ahead.
Meanwhile, the apartment for lease market is expected to
maintain a stable occupancy rate. Despite positive inquiries
from corporate expansion, tighter competition for upper-class
strata-title apartments within premium areas would make the
occupancy in apartments for lease market remain steady.

10 Research & Forecast Report | 1Q 2014 | Apartment | Colliers International

485 offices in
63 countries on
6 continents

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

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Canada: 44
Latin America: 25
Asia: 38
ANZ: 148
EMEA: 84

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Indonesia

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TEL 62 21 521 1400

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