Jakarta Property Market Q316

Colliers Quarterly
31102016
JAKARTA PROPERTY MARKET REPORT
Accelerating success.
Highlight
Office Sector Industrial Estate Sector
During the quarter, there were no new office buildings in the CBD During the quarter, several industrial estates concluded 59 hect-
area, but the market is waiting for an additional 350,919 sq m in Q4 ares of land transactions, which brought the overall 2016YTD
2016. In the last quarter, the average asking rental rates in the CBD sales volume to 107.41 hectares. However, this amount only rep-
already dropped 3.6% to IDR333,736 and are expected to decline resents 30% of the total sales in all of 2015. Only Millennium In-
further. This trend was also recorded outside the CBD area and Si- dustrial Estate introduced a new price last quarter, up by almost
matupang, with rents falling by 4.8% and 1.8% QoQ respectively. 20% QoQ on the back of limited land inventory. Nevertheless,
During the first quarter, occupancy in the CBD further dropped 1% prices have been relatively flat in almost all other industrial es-
QoQ to 84.6% with occupancy anticipated to shrink to 83.4% by the
tates.
end of this year. The current market situation enables tenants to
move to a brand new office building at the same or even cheaper
rental rates. Hotel Sector
Jakarta saw five new star-rated hotels that opened during the
Apartment Sector quarter, providing 777 additional rooms which brought the cumu-
lative number to 38,483 rooms. During the same period, two new
In Q3 2016, there were 3,317 new and additional apartment units,
budget hotels opened, providing a total of 311 rooms that brought
bringing the cumulative supply to 171,014 units. By the end of
the total number of budget hotel rooms to 5,500. In the fourth
2016, there will be another 7,117 units handed over, which will
quarter 2016, we anticipate both star-rated hotels and budget ho-
bring the total additional supply in 2016 to 21,224 units. The cu-
tels to add 3,443 rooms and 837 rooms respectively. The Jakarta
mulative take-up increased modestly to 86.9 %, and we expect
hotel market closed the quarter with a slight drop in occupancy to
this figure to stabilise by the end of 2016. Overall asking prices
55.9% and a small increase in the average daily rate to USD81.92.
moved up gently by less than 1% to IDR31.25 million / sq m due to
the increase in prices for projects completed during the quarter.
Retail Sector
Two new shopping centres were officially opened and
added to the cumulative supply in Jakarta of 4.54 million
sq m. Particularly due to the lower physical occupancy of
the newly operating shopping centres, average occupancy
slipped 1% to 84.9% this quarter. Average rental rates were
relatively stable QoQ at IDR566,087/sq m/month.
2 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Office Sector Supply
Ferry Salanto Senior Associate Director | Research

Office Spaces Offered For Lease
Tight competition among office buildings put pressure on
rental tariff. This will likely to continue by end of 2016. Rental CBD
correction in the CBD will trigger the same situation in the
other areas. CBD Office Cumulative Supply
8,000,000
In the tenants market situation, the option to relocate to
other newer buildings offering better quality features and a 7,000,000
more affordable rate is wide open.
6,000,000
Start-up company in the online-based service will likely be- 5,000,000

come demand generator now and in the future.
4,000,000
Strata-title sales volume is relatively low which probably lead
3,000,000
to price correction. Nevertheless, landlords tend to maintain
sq m
prices at the current level with the option to lease the unsold 2,000,000
units at competitive rates.
1,000,000
Forecast at a glance 0
2010
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
Supply
As of Q4 2016, Jakarta is expecting to see 555,181
sq m of additional supply. About 63% of the future Existing Supply Additional Supply Supply YTD Future Supply
supply will be contributed by office buildings located Source: Colliers International Indonesia - Research
in the CBD area. The cumulative supply is expected
to reach almost nine million sq m by the end 2016,
an increase of 13% YoY. Office spaces for sale com- The cumulative supply remained at 5.48 million sq m, since
pose 51.4% of the total projected supply in 2016. there were no new office buildings in Q3 2016. CBD is expected
to provide an additional 350,919 sq m supply in seven new of-
Occupancy fice buildings in Q4 2016. The completion of these buildings
Occupancy slightly dropped to 85.4% as of Q3 2016. will bring a cumulative supply to 5.83 million sq m by the end
We envisage a further depreciation in occupancy of 2016, a 12.5% increase YoY. Going forward, the cumulative
level in the remainder of 2016, on the back of an supply is expected to grow around 9% per annum up to 2019.
upcoming large supply. Based on how ongoing construction is progressing, 27 out of
the 30 office buildings that will be built until 2019 have started
Rent construction. These 27 buildings being constructed represent
Asking rents generally declined 4.8% QoQ to 95.5% of 2.04 million sq m total future supply up to 2019.
IDR329,448/sq m/month. A huge number of addi-
tional supplies and potential vacant spaces will put
further pressure to the rental tariff by the end of
2016.
Sudirman continues to lead as a submarket with most new Seven office buildings that are expected to open to the public
spaces, contributing 44.8% of the total supply. Sudirman is also by the end of 2016 will likely meet their scheduled completion
expected to provide additional 874,805 sq m by 2019. As of time, resulting to a total supply of 666,430 sq m in 2016, which
Q3 2016, there will be a moderate number of office spaces in will be the largest annual supply since 1990. The supply of office
Satrio, Mega Kuningan and Thamrin, where there were fewer spaces in the subsequent year will be fewer in the CBD, follow-
contributors to the cumulative supply based on area. In term of ing the plan to reschedule the completion of some projects.
supply, however, there will be growth by 60%, 70% and 120%
in 2017, 2018 and 2019. In these areas, about eight office build-
ing projects that are more than 50,000 sq m in size will begin CBD Office Annual Supply Based on Marketing
operation from 2016 to 2019. Scheme
700,000
CBD Office Cumulative Supply Based on Area
600,000
Satrio
500,000
Gatot Subroto
400,000
Mega Kuningan
300,000
sq m
Rasuna Said
200,000
Sudirman
100,000
Thamrin
0
2,000,000
0
500,000
3,500,000
1,500,000
2,500,000
3,000,000
1,000,000
2010 2012 2014 2016F 2018F
For Lease For Sale

sq m
Source: Colliers International Indonesia - Research
Supply 2016F - 2019F Total Supply 2016YTD
Source: Colliers International Indonesia - Research The construction of offices for lease and strata-title office for
sale will be quiet comparable in the CBD over the next three
years. In addition to Centennial Plaza, four other strata-title of-
CBD Annual Supply fice buildings Convergence (in Rasuna Said), Ciputra World 2
(Satrio), Menara Pertiwi (Mega Kuningan) and The Tower (Gatot
800,000 Subroto) are expected to meet their completion by the end of
700,000
2016. These office buildings will contribute a total of 304,315 sq
m for the remainder of 2016. The CBD expects to see large a
600,000 lot more supply of strata-title offices for sale in 2017; 75.2% of
364,245 sq m of which are office spaces for sale.
500,000
400,000
Outside the CBD
300,000
sq m
Harton Tower, a newly operating office building in Kelapa Gad-

200,000 ing, North Jakarta outside the CBD area, offers 8,000 sq m
office spaces. Meanwhile, office spaces outside the CBD dimin-
100,000
ished in number after Tower A building within Arkadia Office
0 Complex in TB Simatupang was demolished. The removal of old
office spaces and the addition of new ones brought the cumula-
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
tive supply to 2.89 million sq m outside the CBD as of Q3 2016,

and is expected to reach 3.00 million sq m by the end of 2016,
Additional Supply Supply YTD Under Construction In Planning for a 13.2% growth YoY.

Despite having small additional office spaces, the total supply Outside the CBD Excluding TB Simatupang Annual
grew significantly outside the CBD, with an expected total sup- Supply
ply of around 660,000 sq m in 2016. Seven future office build-
ings are expected to become available, bringing 360,000 sq m 300,000
additional supply during the remainder of 2016. Projected sup-
ply in 2017 will be 45% lower than the previous year. 250,000
West and South Jakarta continuously became major suppliers 200,000

of new office spaces outside the CBD area, providing around
510,000 sq m new office spaces or 62% of the total projected 150,000
additional supply between 2016 and 2019.
sq m
100,000
Outside the CBD Cumulative Supply 50,000
4,000,000 0
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
3,500,000
3,000,000
Annual Supply Additional Supply YTD
2,500,000
Under Construction In Planning
2,000,000 Source: Colliers International Indonesia - Research
1,500,000
sq m
TB Simatupang
1,000,000
TB Simatupang will also show a decreasing number of new
500,000
office spaces YoY over the next period. Last year, seven of-
0 fice buildings brought almost 240,000 sq m of new additional
supply in TB Simatupang. The demolition of Tower A building
2010
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
within Arkadia Office Complex, however, brought the number

slightly down to 855,750 sq m as of Q3 2016. Additional supply
Existing Supply Additional Supply Supply YTD Future Supply is expected to become available in TB Simatupang by the end
of 2016, as three buildings will begin their operation, providing
108,162 sq m new office spaces and will bring the cumulative
supply to 963,912 sq m by the end of 2016, a 12.6% growth YoY.
TB Simatupang will have no additional office supply in 2017.
Outside the CBD Cumulative Office Supply Based
on Area TB Simatupang Annual Supply
250,000
TB Simatupang
West Jakarta 200,000
East Jakarta 150,000
North Jakarta
100,000
sq m
South Jakarta
50,000
Central Jakarta
0
0
800,000
600,000
400,000
200,000
1,200,000
1,000,000
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
sq m Annual Supply Additional Supply YTD

Supply 2016F - 2019F Total Supply 2016YTD
Under Construction In Planning
Source: Colliers International Indonesia - Research Source: Colliers International Indonesia - Research

New Supply Pipeline
projected SGA*
Office building projects name location Marketing scheme status development
completion (sq m)
CBD
2016 Telkom Landmark Tower II Gatot Subroto 65,000 For Lease Under Construction
2016 Convergence Rasuna Said 36,367 For Lease & Sale Under Construction
2016 Menara Palma 2 Rasuna Said 50,000 For Lease Under Construction
2016 Ciputra World Jakarta 2 Satrio 70,000 For Lease & Sale Under Construction
2016 Satrio Tower Satrio 31,604 For Lease Under Construction
2016 The Tower Gatot Subroto 56,492 For Sale Under Construction
2016 Menara Pertiwi Mega Kuningan 41,456 For Sale Under Construction
2017 PCPD Tower Sudirman 90,500 For Lease Under Construction
2017 T Tower Gatot Subroto 24,000 For Lease & Sale Under Construction
2017 Prosperity Tower (within District 8 complex) Sudirman 71,545 For Sale Under Construction
2017 Treasury Tower (within District 8 complex) Sudirman 139,000 For Sale Under Construction
2017 Sopo Del Tower B Mega Kuningan 40,000 For Lease Under Construction
2018 Lippo Thamrin Office Tower Thamrin 16,500 For Sale Under Construction
2018 Sequis Tower Sudirman 78,000 For Lease Under Construction
2018 Sopo Del Tower A Mega Kuningan 64,000 For Lease Under Construction
2018 Sudirman 7.8 (ex Nugra Santana) Sudirman 52,000 For Sale Under Construction
2018 Tower Two at The City Center Sudirman 101,260 For Lease Under Construction
2018 World Trade Center III Sudirman 70,000 For Lease Under Construction
2018 Tower 2 @ Ciputra World Jakarta 1 Satrio 70,000 For Lease & Sale Under Construction
2018 Astra Tower Sudirman 80,000 For Lease Under Construction
2019 Mangkuluhur Tower Gatot Subroto 53,000 For Lease & Sale Under Construction
2019 Gran Rubina Tower 2 Rasuna Said 32,000 For Sale In Planning
2019 World Capital Tower Mega Kuningan 72,000 For Lease & Sale Under Construction
2019 Icon Tower Sudirman 72,500 For Lease Under Construction
2019 Thamrin Nine Thamrin 97,500 For Lease Under Construction
2019 Chitaland Satrio 90,000 For Lease Under Construction
2019 Indonesia Satu North Tower Thamrin 130,000 For Lease Under Construction
2019 Indonesia Satu South Tower Thamrin 120,000 For Lease Under Construction
2019 The Hundred Mega Kuningan 45,000 For Lease In Planning
2019 Millenium Centennial Tower Sudirman 120,000 For Lease Under Construction
2019 Plaza Gani Djemat 2 Thamrin 8,000 For Lease In Planning
Outside CBD exclude TB Simatupang
2016 Puri Indah Financial Tower Puri Indah 38,500 For Sale Under Construction
2016 Gallery West Kebun Jeruk 29,000 For Sale Under Construction
2016 Tamansari Parama Wahid Hasyim 10,800 For Sale Under Construction
2016 One Belpark Office Pondok Labu 17,800 For Lease Under Construction
2017 ST Moritz Office Tower Puri Indah 19,500 For Sale Under Construction
2017 Soho Pancoran Pancoran 30,000 For Sale Under Construction
2017 BKP Office Tower Sunter 16,000 For Lease Under Construction
2017 Hermina Office Building Kemayoran 20,000 For Sale Under Construction
2017 Agung Sedayu Office Tower PIK 50,000 For Lease Under Construction
2018 One Tower Kemayoran 21,400 For Sale Under Construction
2018 Ciputra Business District Kemayoran Tower 1 Kemayoran 40,000 For Sale Under Construction
2018 Ciputra Business District Kemayoran Tower 2 Kemayoran 40,000 For Lease Under Construction
continued

projected SGA*
Office building projects name location Marketing scheme status development
completion (sq m)
continuation
2018 Ciputra International Puri 1 Phase 1 Puri 15,000 For Lease Under Construction
2018 Ciputra International Puri 2 Phase 1 Puri 20,000 For Lease In Planning
2019 MNC Tower II Kebon Sirih 60,000 For Lease Under Construction
2019 Jakarta Box Tower Kebon Sirih 36,000 For Lease In Planning
2019 Lippo Tower Holland Village Cempaka Putih 27,000 For Sale In Planning
2019 Ciputra International Puri Phase 2 Puri 15,000 For Lease In Planning
2019 Ciputra Internatinal Puri 2 Phase 3 Puri 15,000 For Lease In Planning
TB Simatupang
2016 South Quarter Tower 3 40,778 For Lease Under Construction

2016 Zuria 6,584 For Lease Under Construction
2016 Cibis Tower 60,800 For Lease Under Construction
2018 The Sima 60,000 For Lease Under Construction
2018 Beltway Office Park Tower 4 30,839 For Lease In Planning
2019 Arkadia Tower G 30,000 For Lease In Planning
2019 The Manhattan Square Tower 2 39,375 For Lease & Sale In Planning
Demand office building in Sudirman will move to a new office building in

Gatot Subroto. Another major relocation was that of Citibank, as
it moved to TB Simatupang, bringing the overall occupancy rate
CBD in the CBD slightly declining QoQ to 84.6%.
Occupancy changes in the CBD
In Q3 2016, all office buildings showed a similar trend in their
Office Building occupancy performances. Nevertheless, premium and Grade A
Q4 2015 Q1 2016 Q2 2016 Q3 2016
Grade
office buildings maintained and stabilised their occupancy rates
Premium (%) 88.5 89.4 87.4 87.4 during the quarter. A large additional supply coupled with grow-
Grade A (%) 85.5 84.7 79.4 79.8 ing business sentiment is expected to drive intense competition
Grade B (%) 94.7 93.1 93.2 91.3 amongst office buildings in getting tenants, at least up to the
Grade C (%) 90.7 90.8 89.3 85.5 end of 2016. Some new and future Grade A and premium office
Overall CBD (%) 89.4 88.6 85.6 84.6
buildings will seemingly push the rents down to attract more
tenants. Certainly, this will provide tenants with more building
options to move into and find better quality and yet affordable
office spaces in the future. The current tenant market situation
The weakening occupancy that began in Q4 2015 continues allows office tenants to better negotiate with the office buildings
today. Relocations with space reduction characterised leasing they are occupying.
activities and contributed to the decreasing number of occu-
pancy. After moving out from Jalan Dr. Satrio, Bank Danamons The pre-committed absorption level of office spaces for lease
relocation left large vacant spaces in Jalan Rasuna Said (Gra- may face further downward pressure. There was around
ha Aktiva). Meanwhile, a multinational company that produces 125,000 sq m of office spaces in 2015 that have not yet been
electronic devices, such as printers, scanners and projectors occupied; the pre-committed and committed absorption level
(EPSON), moved to TB Simatupang from an office building of office space in 2016 was recorded at only 33%. A total of
in Sudirman. Other relocations involved bank and insurance around 390,000 sq m of supply for 2015-2016 has not been
companies. An insurance company that previously occupied an occupied as of Q3 2016.

Average Occupancy Rates in the CBD Outside the CBD
100%
Occupancy changes in the CBD
95% Office Building
Q4 2015 Q1 2016 Q2 2016 Q3 2016
Grade
Outside the CBD 90.5 90.6 85.9 87.1
90% excluding TB
Simatupang (%)
85% TB Simatupang (%) 79.8 80.9 79.7 79.2
80%
Occupancy has been showing a gloomy trend since 2015 out-

75% side the CBD. In 2016, newly operating office buildings with
large vacant spaces showed a 3.7% decrease in occupancy YTD
to 87.1% as of Q3 2016. This is expected to decline further,
70%
given the upcoming new office stock of around 100,000 sq m
2010 2011 2012 2013 2014 2015 2016YTD
by the end of 2016.
Premium Grade A All Classes
Based on region, most areas outside the CBD showed a soft
Source: Colliers International Indonesia - Research growth in occupancy QoQ. Underpinned by the leasing activities
of freight forwarding and shipping companies that became ma-
jor tenants in a newly operating office building in Kelapa Gad-
Pre-Committed Absorption at the New and Future ing, North Jakarta, the overall occupancy in North Jakarta was
Office Buildings for Lease in the CBD recorded at 80.1% as of Q3 2016. Despite the fact that this is the
regions lowest rate, North Jakarta showed the highest growth
in occupancy outside the CBD QoQ.
2018F
Occupancy levels in West and Central Jakarta were relatively
flat at 88.5% and 91.6%, respectively. East Jakarta maintained
the highest occupancy level because there is no additional sup-
2017F
ply since 2011. South Jakarta, which contributed 45% of the
total new office buildings that began operation from Q1 to Q3
2016, showed a modest growth in occupancy QoQ. However,
2016F South Jakarta has the second lowest occupancy rate outside
the CBD at 81.3%, as of Q3 2016.
After plummeting substantially in 2014-2015, occupancy rate

2015
in TB Simatupang continued to drop, albeit modestly, hovering
at 79% to 80% in 2016 YTD. Occupancy is expected to slightly
0 100,000 200,000 300,000 400,000
improve in TB Simatupang, given a limited supply projection in
2016-2017.
sq m
Space Absorbed Space Unabsorbed

Average Occupancy Rates in Outside the CBD Pre-Committed Absorption of Office Buildings for
Lease in TB Simatupang
100%
90%
80%
2017F
70%
60%
50%
2016F
40%
30%
20%
10% 2015
0%
2010 2011 2012 2013 2014 2015 2016YTD
0 20,000 40,000 60,000 80,000 100,000 120,000
Outside CBD exclude TB Simatupang TB Simatupang
sq m
Space Absorbed Vacant Space
Pre-Committed Absorption of Office Buildings

for Lease in Outside the CBD (excluding TB As mentioned earlier, there will be no new office buildings in
Simatupang) 2017. Of the total office spaces (more than 200,000 sq m)
available between 2015 and 2016 in TB Simatupang, the pre-
committed occupancy was so far only recorded at below 40%.
Two large office buildings still have large vacant spaces as of
2017F Q3 2016.
Asking Rents
2016F
CBD
Average Asking Rents in the CBD
IDR750,000
2015
IDR600,000
0 20,000 40,000 60,000 80,000
sq m
Space Absorbed Vacant Space IDR450,000

IDR300,000
Absorption is good at two small office buildings outside the

CBD, and this only helped the overall pre-committed absorption IDR150,000
level for 2016, recorded at 27.3%. Having around 100,000 sq
m of office spaces in 2016-2017, the projected occupancy level
may still be maintained above 85% during this period. IDR0
2010 2012 2014 2016YTD
Premium Class All Classes

The average asking rents in the CBD continued to decline since The Range of Asking Rents of Each Submarket in
2014 particularly in premium office buildings. The overall aver- the CBD
age asking rent for all classes of buildings in the CBD, how-
ever, showed a gradual rising trend since the end of 2015 to IDR1,000,000
2016 YTD. The overall average asking rents slip 3.6% QoQ to
IDR333,786/sq m/month as of Q3 2016. Few of these office
buildings lowered their asking rents sharply by 20% to 35% IDR800,000
QoQ, due to the tight competition in securing new tenants amid
the general rental adjustment in the market.
IDR600,000
Based on building grade, Grade C and premium office build-

ings underwent the highest decline in asking rents. Premium
IDR400,000
office buildings, at an average, charge IDR431,997/sq m/month,
which shows an 8.5% decrease QoQ. Meanwhile, Grade C office
buildings rental tariff dropped 14.9% QoQ to IDR201,377/sq m/
IDR200,000
month. In contrast, Grade A office buildings average rental tariff
climbed 2.7% QoQ to IDR377,302/sq m/month.
IDR0
As of Q3 2016, 59 office buildings still offered rental tariff at
Thamrin Sudirman Rasuna Mega Gatot Satrio
below IDR200,000/sq m/month. Most of the buildings are
Said Kuningan Subroto
scattered around Rasuna Said (24 office buildings) and Ga-
tot Subroto (11 office buildings). Dominated by Grade C office Source: Colliers International Indonesia - Research
buildings, the average rents at Rasuna Said submarket were
the lowest at IDR256,978/sq m/month. Meanwhile, despite hav-
ing several small and old Grade C office buildings, the average Outside the CBD
asking rents in Gatot Subroto was the highest in the CBD at
around IDR396,673/sq m/month. Our average rental calculation The average asking rents outside the CBD was also on the
is based on available vacant space. Having said that, the newly ebb since 2015. The average rents dropped 8.9% 2016 YTD
operating Grade A office buildings in Gatot Subroto experienced to IDR217,216/sq m/month. Most of the newly operating of-
a significant vacancy rate (the average charging rent is over fice buildings charged rents below market prices, between
IDR400,000/sq m/month), with the overall rental calculation IDR150,000 and IDR200,000/sq m/month. Some office build-
resulting in high rents. ings were compelled to lower their asking rents due to the tight
competition to secure higher occupancy rates.
Average Asking Rents Based on Building Area

Average Asking Rents in Outside the CBD
IDR900,000
IDR300,000
IDR800,000
IDR700,000 IDR250,000
IDR600,000
IDR200,000
IDR500,000
IDR150,000
IDR400,000
IDR300,000 IDR100,000
IDR200,000
IDR50,000
IDR100,000
IDR0
IDR0
2010 2012 2014 2016YTD
Premium Grade A Grade B Grade C
Outside CBD TB Simatupang

As of Q3 2016, around 87% of the total office building recorded Service charges were relatively flat in 2016 YTD, standing be-
asking rents below the average market prices outside the CBD, tween IDR79,000 and IDR80,000/sq m/month. Forty-four per-
between IDR50,000 and IDR220,000/sq m/month, except East cent of the total office buildings still introduced service charges
Jakarta. South Jakarta, outside the CBD, showed the largest at below IDR80,000/sq m/month. Nine office buildings are mar-
gap in rental tariffs, where 23 office buildings offered rents at keted as strata-title office buildings for sale, which generally
above market prices. Sixteen out of the 23 office buildings are offer lower maintenance tariff, because electricity is separately
located in TB Simatupang. The asking rents in TB Simatupang metered. As of Q3 2016, average service charge of strata-title
remained the most expensive, compared to other areas, despite office buildings for sale is at IDR40,975/sq m/month, whilst of-
falling 11% in 2016 to IDR236,018/sq m/month. fices for lease is at IDR84,055/sq m/month.
Average service charges outside the CBD were generally 20%

The Range of Asking Rents of Each Area in outside lower than those in the CBD. Service charges were maintained
the CBD at IDR58,000/sq m/month in 2016 YTD. Newly operating of-
IDR500,000
fice buildings in 2015-2016 charged their services between
IDR35,000 and IDR65,000/sq m/month. Meanwhile, strata-
title office buildings in this area commonly introduced service
IDR400,000 charges at below IDR50,000/sq m/month.
IDR300,000
Central and South Jakarta maintained the most expensive aver-
age service charges at IDR63,999 and IDR59,016/sq m/month,
respectively. Forty percent of the total office buildings in Cen-
IDR200,000 tral Jakarta charged maintenance costs at above market prices.
Also, four of these office buildings charge above IDR100,000/
IDR100,000
sq m/month. The expensive service charge in South Jakarta
area was mostly contributed by the office buildings in TB Sima-
tupang, with at least 25 office buildings charging above market
IDR0 prices, at an average of IDR62,798/sq m/month. As of Q3 2016,
service charges in TB Simatupang ranged between IDR25,000
West Jakarta
South Jakarta
TB Simatupang
Central Jakarta
East Jakarta
North Jakarta
and IDR120,000/sq m/month.
Service Charges in Outside the CBD

IDR150,000
Service Charges IDR120,000

Service Charges in the CBD
IDR150,000 IDR90,000
IDR120,000 IDR60,000
IDR90,000 IDR30,000
IDR60,000 IDR0
IDR30,000 Source: Colliers International Indonesia - Research
IDR0

Strata-title Office Average asking price was recorded relatively flat at IDR33 mil-
lion/sq m since 2015 in TB Simatupang, lower than outside
The take-up rate moved relatively flat QoQ. We also noted that a the CBD. As of Q3 2016, the vacant spaces of office for sale
strata-title office buildings for sale held a selling activity. Over- were offered at between IDR27 million and IDR37.5 million/sq
all, due to limited substantial transactions as of Q3 2016, the m. Other than that, the current sluggish market caused some
pre-committed take-up rate was recorded at 55.6%, out of 1.04 landlords to lower their asking prices at around 10% to 30%, in
million sq m total supply in the CBD from 2015 to 2018. Never- order to boost sales volume in the future.
theless, the CBD area still maintained its overall take-up rate at
a healthy 68% level in 2016.
Pre-Committed Take-Up Rate of Strata-title Office
As the take-up rate slows down, it seems to be in line with the Buildings for Sale in Outside the CBD
rise in asking price. The average asking price was recorded at
IDR55.2 million/sq m for new and soon-to-be constructed of-
fice buildings as of Q3 2016. Some upcoming office buildings 2018F
have adjusted their asking prices up by 7% to 20%, since the
initial price when they were launched.
2017F
In the meantime, asking office prices in the secondary market
were offered at between IDR40 million and IDR105million/sq m,
depending on the quality of the building.
2016F
Pre-Committed Take-Up Rate of Strata-title Office

Buildings for Sale in the CBD
2015
2018F
0 50,000 100,000 150,000 200,000 250,000
sq m
Space Absorbed Vacant Space
2017F
2016F Range of Asking Prices at New and Future Office

Buildings
IDR100,000,000
2015
IDR80,000,000
0 70,000 140,000 210,000 280,000 350,000
sq m
Space Absorbed Space Unabsorbed IDR60,000,000
IDR40,000,000
The sales volume of projected strata-title office spaces in 2016-

2018 grew very modestly outside the CBD. As of Q3 2016, 25% IDR20,000,000
of the unsold spaces in 2015 remain available. The limited num-
ber of sales volume caused the average asking prices to experi-
ence a modest growth in 2016YTD. Excluding TB Simatupang, IDR0
the average asking price was recorded at IDR37.1 million/sq m CBD Outside the CBD TB Simatupang
outside the CBD, a 2.4% increase compared to the previous excluding TB
quarter. Simatupang

Concluding Thought
Compared with last years performance, a larger future supply
forecasted a decreasing rent, and this is expected to continue
up to the end of 2016. Landlords need to immediately reach a
high commitment occupancy level. On the other hand, there
is a big opportunity for tenants to move to a brand new office
building at the same or even cheaper rent rates. A decrease
in the CBD will likely impact the asking rents outside the CBD,
including TB Simatupang.
A decreasing trend for the asking rents will also compose a

new circulation for demand generator. In addition to financial
institutions, more start-up companies, such as online business-
es, are expected to send more enquiring to the CBD.
Although registering smaller sales volume, landlords confident-

ly maintain their asking prices relatively flat, due to that fact that
these landlords will use other options to lease vacant spaces.
Certainly, the asking rents for these vacant spaces will follow
the recent asking rent trend.

Quarterly Report
JAKARTA | OFFICE
Q2 2016 Accelerating success.
Apartment Sector Forecast at a glance

Supply
Ferry Salanto Senior Associate Director | Research The strata-title apartment stock increased by 3,317
units to a total of 171,014 units as of Q3 2016. In the
Positive sentiment over the outlook of Indonesia was high- remainder of 2016, we expect a total of 7,117 units to
lighted by the stability in the exchange rate and improving be handed over, which would bring the 2016 annual
macroeconomic environment, which could contribute to the supply to 21,224 units lower than what was initially
modest increase in the average take-up rate. In addition, a lim- projected.
ited number of newly launched projects also pushed the take-
up rate upward, whilst at the same time, developers focus on Demand
selling the remaining stock. The asking price still showed a With the economic outlook likely to grow moderately
positive trend, following the improvement in the sales rate, as this year, we expect the apartment market to remain
well as the resumption of projects that remain under construc- steady in the coming quarter, although recent poli-
tion. Furthermore, the government continues to issue favour- cies rolled out by the government have brightened
able policy initiatives and programmes in an attempt to brisk the long-term outlook. Furthermore, we expect the
property market up, such as loan-to-value (LTV) relaxation, average take-up rate to be at 86%-87% level at the
tax amnesty programme and lowering PPh final (income tax) end of 2016.
on the transfer of lands and buildings. However, we believe it
would take some time for this to happen and translated into a Rent
significant and sustainable increase in the apartment demand. Asking rental rate of apartments for lease will re-
main stable throughout this year. Furthermore, most
apartments, particularly serviced apartments, antici-
pate an increase in rent next year, in an adjustment
to increase utility costs and inflation.
Price
Sluggish demand and head-to-head market com-
petition left no room for prices to go up further. In
2016, developers chose to maintain their price to at-
tract potential buyers. As such, we expect apartment
price to grow slightly above inflation rate at 4% to
5% YoY for the entire 2016.
APARTMENT FOR STRATA-TITLE (Scarlet Tower), Sentra Timur Residence (Tosca Tower) and
Teluk Intan (Saphire Tower). Meanwhile, the Bassura City (Cat-
tleya Tower) and Woodland Park (Mahogany Tower) projects are
classified as middle-lower segment projects. La Venue (North
Supply Tower), located in Pasar Minggu, South Jakarta, was the only
middle-upper apartment project to be completed this quarter.
The completion of six projects, contributing additional 3,317 Overall, until Q3 2016, as many as 14,107 units or 53.1% of the
units in Q3 2016, increased the total stock of strata-title apart- total projected 26,583 units will be completed and handed over
ments in Jakarta to 171,014 units, up by 2% QoQ or 12.2% YoY. this year. In the remainder of 2016, we expect a total of 7,117
All of the newly completed projects were extensions of existing units to be handed over, which would bring the 2016 annual
projects. Of the abovementioned six projects, three are catego- supply to 21,224 units lower than what was initially projected.
rised as low segment projects, including The Green Pramuka
List of Completed Apartment Projects During Q3 2016

Name of development location region developer units
The Green Pramuka (Tower Scarlet) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000
Bassura City (Tower Cattleya) Jl. Basuki Rahmat East Jakarta Synthesis Development 600
Sentra Timur Residence (Tower Tosca) Pulo Gebang East Jakarta J.O. Perumnas and Bakrie Land 146
La Venue (North Tower) Jl. Pasar Minggu South Jakarta PT Bintang Rajawali (Sinar Mas Group) 253
Woodland Park (Mahogany Tower) Jl. Pahlawan Kalibata South Jakarta PT. Pardika Wisthi Sarana 218
Teluk Intan Apartment (Sapphire Tower) Jl. Teluk Gong North Jakarta PT Trika Bumi Pertiwi 1,100
Total 3,317
As of Q3 2016, a total of 1,799 apartment units from three proj- Foreign developers from Japan and Singapore have extensive-
ects were introduced, revealing a decrease of 25% in term of ly invested in real estate projects in Jakarta. Nowadays, for-
the number of projects compared to the previous quarter. South eign developers from China are quite bold in expanding to the
and West Jakarta continue to contribute more apartment supply country. A Chinese developer is planning to construct the first
over the next three years. mixed-use project development in West Jakarta, named Daan
Mogot City, consisting of residential, retail and commercial de-
South Jakarta will see middle-class projects from Permata Hi- velopments. The residential development will be quite massive,
jau Suites, consisting of 649 units from two towers, providing consisting of 30 apartment towers. The first stage starts with
one-bedroom to three-bedroom types of unit, ranging from 40.9 eight towers. The construction of the first three towers will start
sq m to 91.7 sq m in size. Although the site is not located in in the second half of 2016, whilst the remaining five towers will
the main road and is relatively remote from Permata Hijau, the start construction in the following year. A middle-lower class
property is generating so much interest, most probably due to apartment will offer studio to two-bedroom units, ranging from
its price, location (within the South Jakarta area) and the fact 21.9 sq m to 45.0 sq m. It is expected to be completed in the
that only a small number of units sit on this two-hectare land. next three years. From the CBD area, Ciputra introduced the
In the pre-launching period, they claimed that 100 units had extension of Ciputra World 2, named The Newton, which con-
already been absorbed, most of the buyers of which are from sists of studio units, two-bedroom apartment units and others.
their board of directors families. Approximately 53% of the units are 25-sq m studio-type units,
and will likely be offered at IDR1 billion.
Newly Introduced Projects During Q3 2016

Expected estimated price
Name of development LOCATION region total Units
completion time (idr/sq m)*
Permata Hijau Suites (2 towers) Jl. Raya Kebayoran Lama South Jakarta Q4 2019 IDR 21 million 649
No.55
Daan Mogot City Apartment (phase I) Daan Mogot West Jakarta Q4 2019 IDR 15 - 18 million 700
(3 towers)
The Newton at Ciputra World 2 Jl. Karet Sawah CBD 2020 IDR 40 - 44 million 450
*) Price based on hard cash excludes VAT 10%

Furthermore, with the addition of these three newly introduced Under-Construction Apartment Based on Area
projects, there are currently 77,128 units of future supply that
CBD
are being offered to the market. West Jakarta and South Jakarta
6% Central
are still the most preferred areas to develop strata-title apart-
Jakarta
ments, due to their interconnectedness to the Jakarta Outer West
12%
Ring Road, which has increased accessibility to the area as well Jakarta
as the proximity to Soekarno-Hatta International Airport. On the 28%
other hand, South Jakarta is still attractive as apartment loca-
tion due to its comprehensive facilities, good infrastructure and
proximity to the business centre.
The recent Government Regulation Number 34, 2016 seeks to South

boost the property sector by lowering the final income tax (PPh Jakarta
final) on the transfer tax on lands/buildings from 5% to 2.5%, 23%
which officially became effective in September. Developers

will pay lower taxes, providing them a better margin and thus East
making properties more attractive. However, although tax is re- Jakarta
duced, apartment price does not automatically follow. 19%
North
Jakarta
12%
New Pipeline
Apartment name location region developer #units Status
2016
The Green Pramuka (Tower Orchid) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 Built
The Green Pramuka (Tower Penelope) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 Built
The Royal Springhill (Bouvardia Tower) Jl. Spring Hill Residence Ke- Central Jakarta Springhill Golf Group 120 Built
mayoran
The Royal Springhill (Bulgari Tower) Jl. Spring Hill Residence Ke- Central Jakarta Springhill Golf Group 192 Built
mayoran
Casablanca East Residence (Tower Dallas) Jl. Pahlawan Revolusi East Jakarta Binakarya Proper- 408 Built
tindo Group
Casablanca East Residence (Tower Casa- Jl. Pahlawan Revolusi East Jakarta Binakarya Proper- 719 Built
blanca) tindo Group
Bassura City (Tower Edelweiss) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 1,000 Built
ment
Bassura City (Tower Dahlia) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 1,000 Built
ment
Green Bay Pluit (Sea View) Jl. Pluit Karang Ayu North Jakarta Agung Podomoro 2,072 Built
Group
Kemang Village (The Bloomington) Jl. P Antasari South Jakarta Lippo Karawaci 150 Built
Four Winds Jl. Permata Hijau Raya No.1 South Jakarta PT.Tri TirtaPermata 140 Built
Metro Park Residence Kebon Jeruk West Jakarta Agung Podomoro 1,451 Built
Group
Madison Park Tanjung Duren West Jakarta Agung Podomoro 1,200 Built
Group
19 Avenue Apartment 9 (Tower A) Daan Mogot West Jakarta Margahayu Land 338 Built
The Green Pramuka (Tower Scarlet) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 Built
Bassura City (Tower Cattleya) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 600 Built
ment
Sentra Timur Residence (Tower Tosca) Pulo Gebang East Jakarta Bakriland Develop- 133 Built
ment
Teluk Intan (Tower Saphire) Jl. Teluk Gong North Jakarta PT Trika Bumi 1,100 Built
Pertiwi
continued

continuation
La Venue - North Tower Jl. Pasar Minggu South Jakarta PT Bintang Rajawali 253 Built
(Sinar Mas Group)
Woodland Park (Mahogany Tower) Jl. Pahlawan Kalibata South Jakarta PT. Pardika Wisthi 218 Built
Sarana
The Grove (Empyreal + Masterpiece) Jl. HR Rasuna Said CBD Bakriland Develop- 438 Under-construction
ment
The Residence (CWJ 2) Jl. Prov Dr Satrio Kav 6, Kun- CBD Ciputra 119 Under-construction
ingan
The Orchad Satrio (CWJ 2) Jl. Prov Dr Satrio Kav 6, Kun- CBD Ciputra 349 Under-construction
ingan
T - Plaza Residence (Tower A) Jl. Penjernihan I Kav.1 Pejom- Central Jakarta PT. Prima Kencana 321 Under-construction
pongan
Elpis Residence Gunung Sahari Central Jakarta Sioeng Group 790 Under-construction
The H Residence Kemayoran (Amethyst) Jl. Rajawali Selatan Central Jakarta Hutama Karya 800 Under-construction
Realtindo
Bassura City (Tower Alamanda) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 600 Under-construction
ment
East Park Apartment (Tower C) Jl. KRT Radjiman East Jakarta PT. Cakra Sarana 550 Under-construction
Persada
Pluit Seaview (Tower Belize) Pluit North Jakarta Binakarya Proper- 557 Under-construction
tindo Group
Senopati Suites 2 Jl. Senopati South Jakarta Mahkota Asia Graha 81 Under-construction
LA City Apartment (Tower A) Jl. Raya Lenteng Agung, Jaga- South Jakarta Pancanaka Samaktha 980 Under-construction
karsa
Nine Residence Warung Buncit South Jakarta Lippo Karawaci 246 Under-construction
Senopati Suites 3 Jl. Senopati South Jakarta Mahkota Asia Graha 54 Under-construction
1 Park Avenue (3 Towers) Jl. KHM Syafi'I Hadzami (terusan South Jakarta Intiland 279 Under-construction
gandaria)
Izzara Apartment (South and North Tower) TB. Simatupang South Jakarta Grage Group 542 Under-construction
Apartment Pejaten Park Residence Jl. Warung Buncit Raya No.21 South Jakarta Bahama Group 560 Under-construction
Kebayoran Icon Jl. Ciledug Raya South Jakarta Tamara Land 256 Under-construction
One Casablanca Residence Jl. Pal Batu South Jakarta Forza Land 215 Under-construction
St Moritz (The New Ambassador Suite Jl. Puri Indah Kembangan West Jakarta Lippo Karawaci 200 Under-construction
Tower)
St. Moritz (New Presidential Tower) Jl. Puri Indah West Jakarta Lippo Karawaci 159 Under-construction
The Nest Apartment Jl. Raden Saleh Raya, Meruya West Jakarta PT. Karya Cipta 1,100 Under-construction
Utara Sukses Selaras
Green Park View (Tower Gardenia) Jl. Daan Mogot West Jakarta PT. Inten Cipta Sejati, 1,200 Under-construction
Cempaka Group
Belmont Residence (TowerAthena) Jl. Meruya Ilir West Jakarta Gapura Prima 193 Under-construction
Puri Mansion Apartment (Tower Amethyst) Jl. Lingkar Luar Barat, Puri West Jakarta Agung Sedayu Group 900 Under-construction
Kembangan
Paradise Mansion (2 tower) Jl. Paradise Boulevard Selatan West Jakarta Palm Group 1,000 Under-construction
2017
Sudirman Suites Jl. Sudirman CBD Pikko Group 380 Under-construction

Domaine Jl. Jend. Sudirman Kav 1 CBD Lyman Group 186 Under-construction
Verde Two (Tower East) Jl. Rasuna Said CBD Farpoint Realty 182 Under-construction
Anandamaya Residences (3 towers) Jl. Jend Sudirman CBD Hongkong Land 500 Under-construction
Menteng Park Jl. Cikini Raya No.79 Central Jakarta Agung Sedayu Group 756 Under-construction
Holland Village Cempaka Putih Central Jakarta Lippo Karawaci 400 Under-construction
Royal Suites Kemayoran Central Jakarta Springhill Golf Group 450 Under-construction
continued

continuation
The Green Pramuka (Tower Nerine) Jl. Jenderal Ahmad Yani Central Jakarta PT Duta Paramindo 1,000 Under-construction
Green Signature Apartment Jl. MT. Haryono East Jakarta KSO Fortuna Indone- 800 Under-construction
sia (Pikko)
Podomoro Park Jl. I Gusti Ngurah Rai, Klender East Jakarta Agung Podomoro 3,000 Under-construction
Group
Sentra Timur Residence (Tower Brown) Pulo Gebang East Jakarta Bakriland Develop- 605 Under-construction
ment
Bassura City (Tower Jasmine) 2 tower Jl. Basuki Rahmat East Jakarta Synthesis Develop- 2,000 Under-construction
ment
Bassura City (Tower Heliconia) Jl. Basuki Rahmat East Jakarta Synthesis Develop- 700 Under-construction
ment
Pluit Seaview (Tower Ibiza) Pluit North Jakarta Binakarya Proper- 500 Under-construction
tindo Group
Pluit Seaview (Tower Bahama) Pluit North Jakarta Binakarya Proper- 650 Under-construction
tindo Group
Regatta London Tower Jl. Pantai Mutiara North Jakarta Intiland 186 Under-construction
Pakubuwono Terrace Grand Tower Kebayoran Lama South Jakarta PT. Selaras Mitra 435 Under-construction
Sejati
District 8 (Tower Eternity) Jl. Senopati South Jakarta Agung Sedayu 400 Under-construction
District 8 (Tower Infinity) Jl. Senopati South Jakarta Agung Sedayu 280 Under-construction
Lexington Rersidence Pondok Pinang South Jakarta Cowwel Develop- 275 Under-construction
ment
The Aspen Peak at Admiralty (Tower C) Jl. Fatmawati South Jakarta PT. Harmas Jalas- 322 Under-construction
veva
Sapphire Residence Lebak Bulus South Jakarta PT. Bangun Lintas 37 Under-construction
Shafira
La Terrasse Jl. Deplu Raya No.12 South Jakarta Cowell Development 111 Under-construction
The Foresque Pasar Minggu, Ragunan South Jakarta PT Griya Karunia 660 Under-construction
Sejahtera (Binakarya
Propertindo Group)
The Langham Residences Senopati South Jakarta Agung Sedayu Group 57 Under-construction
Antasari Heights (One Otium Residence) Jl. Pangeran Antasari No.8 South Jakarta PT Radinka Quatro 360 Under-construction
Land
The Batik @ Pejaten Jl. Siaga Raya South Jakarta Alam Kencana 137 Under-construction
La Foret Vivante Jl. Limo, Permata Hijau South Jakarta PT. Mahkota Properti 253 Under-construction
Indo Permata
Selatan 8 (Tower Sultan) Kebayoran Lama South Jakarta Karya Cipta Group 336 Under-construction
The Hamilton Jl. KHM Syafi'I Hadzami South Jakarta Intiland 112 Under-construction
Puri Mansion Apartment (Tower Amethyst) Jl. Lingkar Luar Barat, Puri West Jakarta Agung Sedayu Group 900 Under-construction
Kembangan
Puri Orchad (3 Tower) Jl Raya Adicipta West Jakarta PT Adicipta Graha 3,000 Under-construction
Kencana (Serenity
Group)
Maqna Residence Jl. Meruya Ilir No. 88 West Jakarta PT. Graha Meruya 312 Under-construction
Veranda Jl. Pesanggrahan Raya, Kem- West Jakarta PT. Mutirara Puri 174 Under-construction
bangan Indah
Vittoria Residence (3 tower) Jl. Daan Mogot West Jakarta PT. Duta Indah 1,100 Under-construction
Kencana
Wang Residence Jl. Panjang No 18 West Jakarta PT. Citicon Proper- 250 Under-construction
tindo
Taman Anggrek Residence (6 towers) Tanjung Duren West Jakarta Agung Sedayu 3,000 Under-construction
19 Avenue Apartment (Tower B) Daan Mogot West Jakarta Margahayu Land 416 Under-construction
Sycamore Suite Puri Botanical, Joglo West Jakarta Jakarta Setiabudi 125 Under-planning
International
continued

continuation
2018
Gayanti City (2 Towers) Jl. Gatot Subroto CBD PT Buana Pasifik 318 Under-construction
International
Verde Two (Tower West) Jl. Rasuna Said CBD Farpoint Realty 152 Under-construction
Lavie Jl. Denpasar Raya CBD Wilsor Group 302 Under-construction
South Hill Jl. Denpasar Raya CBD Tan Kian 611 Under-construction
Le' Parc Jl. Thamrin CBD PT. Putragaya 100 Under-construction
Wahana
Regent Residences (tower 1) Semanggi CBD PT. Kencana Graha 100 Under-construction
Global
The Hundred Residence Mega Kuningan CBD PT. Farpoint Realty 100 Under-construction
Indoneasia
The Elements Epicentrum (2 Towers) Rasuna Said CBD Sinar Mas Land 372 Under-construction
Capitol Suites Jl. Prapatan Raya Central Jakarta The Capitol Group 327 Under-construction
Holland Village (Phase II) Cempaka Putih Central Jakarta Lippo Karawaci 230 Under-construction
Signature Park Grande Jl. MT. Haryono East Jakarta KSO Fortuna Indone- 1,100 Under-construction
sia (Pikko)
Sahid Garden Residence Ciracas East Jakarta Sahid Group 476 Under-planning
Gold Coast Apartment (Atlantic Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 568 Under-construction
Regatta Apartment (Tower New York) Pantai Mutiara North Jakarta Intiland 186 Under-construction
Sedayu City (Tower Melbourne) Jl. Pegangsaan Dua Raya North Jakarta Agung Sedayu 912 Under-planning
Sedayu City (Tower Darwin) Jl. Pegangsaan Dua Raya North Jakarta Agung Sedayu 936 Under-planning
The Kensington Royal Suites (4 Tower) Kelapa Gading North Jakarta Summarecon 790 Under-construction
Gold Coast Apartment (Bahama Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Gold Coast Apartment (Carribean Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Gold Coast Apartment (Honolulu Tower) Pantai Indah Kapuk North Jakarta Agung Sedayu 600 Under-construction
Grand Marina Ancol Ancol North Jakarta PT. Bangun Setia 672 Under-planning
Cipta (Jaya Ancol)
Bellevue Place MT Haryono, Tebet South Jakarta Gapura Prima 240 Under-construction
The Aspen Peak at Admiralty (Tower D) Jl. Fatmawati South Jakarta PT. Harmas Jalas- 322 Under-construction
veva
Casa Grande Residence 2 (Tower Angelo) Jl. Casablanca South Jakarta Pakuwon Group 350 Under-construction
Casa Grande Residence 2 (Tower Bella) Jl. Casablanca South Jakarta Pakuwon Group 350 Under-construction
Casa Grande Residence 2 (Tower Chianti) Jl. Casablanca South Jakarta Pakuwon Group 350 Under-construction
Pondok Indah Residences (3 Towers) Pondok Indah South Jakarta Metro Pondok Indah 880 Under-construction
Selatan 8 (Tower Prabu) Jl. Raya Ulujami South Jakarta Karya Cipta Group 344 Under-construction
45 Antasari (2 Tower) Antasari South Jakarta Cowell Development 1,924 Under-construction
Arzuria Apartment Jl. Tendean South Jakarta Tolaram Group 210 Under-construction
Pakubuwono Spring (2 towers) Jl. Teuku Nyak Arief No.9 South Jakarta PT. Simprug Mah- 545 Under-construction
kota Indah (Agung
Podomoro Group)
Branz Simatupang (2 tower) TB. Simatupang South Jakarta Tokyuland 381 Under-construction
Synthesis Residence Kemang (3 towers) Jl. Ampera Raya No.17 South Jakarta PT. Synthesis Devel- 1,100 Under-construction
opment
The Ease Brawijaya Jl. Taman Brawijaya III Kebay- South Jakarta PT. Bhakti Usaha 54 Under-planning
oran Baru Dinamika
Gianetti Apartment Jl. Kebon Jeruk Raya, Kemang- West Jakarta Bangun Investa 500 Under-construction
gisan Graha
Gallery West Jl. Panjang No 5 West Jakarta AKR 280 Under-construction
Ciputra International Puri Indah (Tower Jl. Lingkar Luar Barat West Jakarta Ciputra 412 Under-construction
Amsterdam)
continued

continuation
Grand Madison Park Tanjung Duren West Jakarta Agung Podomoro 300 Under-construction
Group
Citra Lake Suites (Tower Rosewood) Jl. Raya Kresek West Jakarta Ciputra Group 104 Under-construction
Citra Lake Suites (Tower Greenwood) Jl. Raya Kresek West Jakarta Ciputra Group 126 Under-construction
Citra Lake Suites (Tower Oakwood) Jl. Raya Kresek West Jakarta Ciputra Group 117 Under-construction
Citra Lake Suites (Tower Sherwood) Jl. Raya Kresek West Jakarta Ciputra Group 122 Under-construction
Aerium Taman Permata Buana (2 towers) Taman Permata Buana West Jakarta Sinar Mas Land and 491 Under-planning
Itochu
Ciputra International Puri Indah (Tower Jl. Lingkar Luar Barat West Jakarta Ciputra 335 Under-construction
Barcelona)
Puri Mansion Apartment (Tower Crystal) Jl. Lingkar Luar Barat, Puri West Jakarta Agung Sedayu Group 700 Under-construction
Kembangan
West Vista (2 towers) Jl. Lingkar Luar Barat No.8, Duri West Jakarta PT. Harapan Global 2,840 Under-construction
Kosambi Niaga
Citra Living Apartment (Somerset Tower) Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha 312 Under-construction
KSO
Citra Living Apartment (Orchad Tower) Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha 312 Under-construction
KSO
Citra Living Apartment (Newton Tower) Jl. Citra 7, Kalideres West Jakarta Citra Mitra Graha 312 Under-construction
KSO
2019
The Suite (W Hotel Tower) Jl. Prof. Dr. Satrio CBD Ciputra 200 Under-planning
The Residences at The St. Regis Jakarta Jl. H.R Rasuna Said CBD Rajawali Property 164 Under-construction
Group
Arandra Residence (was Sentosa Resi- Jl. Cempaka Putih Raya No.1 Central Jakarta Gamaland 687 Under-construction
dence)
Menara Jakarta (Tower Equinox) Kemayoran Central Jakarta Agung Sedayu 396 Under-construction
Menara Jakarta (Tower Azure) Kemayoran Central Jakarta Agung Sedayu 860 Under-construction
The Linq Kemayoran (2 towers) Kemayoran Central Jakarta KG Global 1,020 Under-planning
Menteng 37 Jl. Menteng 37 Central Jakarta Pikko Group & Wijaya 99 Under-planning
Wisesa (JV)
The H Residence Kemayoran (Lotus) Jl. Rajawali Selatan Central Jakarta PT Hutama Karya 252 Under-planning
Realtindo
Jaya Ancol Seafront - Oceana Tower Pademangan, Ancol North Jakarta Jaya Ancol 524 Under-construction
Orient Residence Jl. Yos Sudarso, No 76 North Jakarta PT Tri Raton Mega 225 Under-planning
Fatmawati City Center - Corona Park Suite Fatmawati South Jakarta Agung Sedayu 620 Under-planning
Tower
Royal Park at Kebayoran (Arlington Tower) Jl. Cileduk Raya 18, Cipulir South Jakarta PT. Trixindo Selaras 630 Under-planning
Ratu Prabu 3 Residences TB. Simatupang South Jakarta PT Ratu Prabu Tiga 61 Under-construction
Samara Suites (was The Residence Gatot Jl. Gatot Subroto South Jakarta Synthesis Develop- 300 Under-planning
Subroto) ment
Lavish Kemang Residence Jl. Kemang Raya No.3, Bangka South Jakarta PT Kemang Karya 474 Under-planning
Utama
Green Sedayu Apartment Jl. Kamal Raya, Cengkareng West Jakarta Agung Sedayu 644 Under-planning
(Tower Pasadena)
Permata Hijau Suites (2 towers) Jl. Raya Kebayoran Lama No.55 South Jakarta PT Palmerindo 649 Under-planning
Properti
Daan Mogot City Apartment (phase I) (3 Daan Mogot West Jakarta PT China Harbour 700 Under-planning
towers) Jakarta Real Estate
Development

Demand On the other hand, approaching the end of September, under-
going the tax amnesty programme has allowed the collection
Indonesias GDP grew at 5.18% YoY in Q2 2016, above the mar- of redemption payments amounting to IDR79.4 trillion, almost
ket expectation of 5% and the actual 4.91% GDP in Q1 2016. half of the target amount. At the same time, IDR3.18 quadrillion
This positive economic outlook resulted to a modest increase in worth of assets had been declared (almost 80% of the target).
the average take-up rate of apartments in Jakarta. With limited The repatriated funds would be required to be invested in gov-
amount in the newly launched projects, developers will focus ernment bonds for a three-year period. The Ministry of Finance
more on selling the remaining stocks of projects under con- released a regulation (Finance Minister Regulation [PMK] No.
struction. As a result, sales activities within the reviewed period 122 Year 2016) stating that repatriated funds may be invested in
mainly occurred in these projects, which in turn increased the realty-related sectors, such as real estate (land and building). In
average take-up rate very modestly to 86.9% from 86.7% in the view of this, the apartment market, especially the middle-upper
previous period. to upper class projects might benefit from the regulation, as
these are likely to be the preferred property type for investment.
We expect to see an increasing interest in the middle to upper
Take-up Comparison between Existing and Under- class projects, as a result of the programme. Some developers
Construction Projects plan to release several apartment projects starting next quarter,
such as Intiland in Kebon Melati, Senopati 2 by Senopati Aryani
Q3 2015 Q2 2016 Q3 2016 QoQ YoY
Prima and Southgate by Sinar Mas Land in Tanjung Barat, South
Existing Projects 96.0% 96.2% 96.3% 0.1% 0.3% Jakarta.
Under-Construction 68.4% 68.1% 68.5% 0.4% 0.1%
projects Middle to lower segment apartment projects may take advan-
Average 85.7% 86.7% 86.9% 0.2% 1.2% tage of the new LTV regulation. Bank Indonesia issued the new
(all projects)
regulation, No.18/16/PBI/2016, replacing the previous regula-
Source: Colliers International Indonesia - Research tion, No.17/10/PBI/2015, which would improve the capability of
first home buyers to purchase a property as the down payment
Several marketing appetisers continued to be offered and re- at a lower rate, from 20% to 15%.
mained the same as in the previous period. These include a
flexible payment term, discounts, direct prizes and longer instal-
ment terms without interest (provided by developers). The take- Comparison of Central Bank Regulation on LTV (2015
up rate performance did not change, as the CBD continues to vs 2016)
gain the highest figure of 94.4%. A moderate decline trend oc- Previous* Revised**
curred because some projects that have been previously intro- Type of
Property 1st 2nd 3rd 1st 2nd 3rd
duced are now available in the market, but performing below the Purchase Purchase Purchase Purchase Purchase Purchase
average rate. Meanwhile, South Jakarta and other non-prime Apartment 80% 70% 60% 85% 80% 75%
areas recorded an upward trend, both quarterly and yearly, > 70 sq m
driven by a continued absorption in particular projects that are Landed House 80% 70% 60% 85% 80% 75%
> 70 sq m
still under construction. Amid the current sluggish market, it is
Apartment 90% 80% 70% 90% 85% 80%
crucial for developers to commit to a timely handover. 22 - 70 sq m
Landed House 22 - 80% 70% - 85% 80%

- 70 sq m
Take-up Rate Changes in Different Locations in Jakarta Apartment

< 21 sq m
- 80% 70% - 85% 80%
Q3 2015 Q2 2016 Q3 2016 QoQ YoY Landed House - - - - - -

< 21 sq m
CBD 96.8% 94.5% 94.4% -0.1% -2.4%
Notes: *) No.17/10/PBI/2015; **) No.18/16/PBI/2016
South Jakarta 86.1% 85.9% 86.1% 0.2% 0.0% Source: Bank Indonesia
Non-Prime area 83.9% 85.9% 86.1% 0.2% 2.2%
All in all, the abovementioned policy initiatives and programmes
should provide a bright long-term outlook for the apartment
After all, despite the favourable policies rolled out by the gov- market. A relaxed LTV, lower mortgage rates and a tax am-
ernment, the citys residential sales activity has not shown any nesty programme to take effect at the end of 2016 to 2017 will
significant impact. The Central Bank has issued several poli- significantly impact the property market. At the very least, we
cies in an attempt to jack up credit demands that include cut- believe any reforms would take some time to be implemented
ting the interest rate three times since early 2016 and replac- and translated into a significant and sustainable increase in the
ing the benchmark interest rate. Currently, the new benchmark apartment demand.
follows the seven-day reverse repurchase (repo) rate at 5%
and no longer uses the 12-month BI rate, which is standing at
6.50%. The adoption of the new rate was meant to improve
the transmission mechanism of policy rate cuts to actually im-
pact lending rates, which in turn stimulate the local economy.

Asking Price supporting facilities (hospital, international school, interna-
tional stores and associations), which make the area favour-
In Jakarta, a little improvement in the take-up rate was considered able for both investors and end users. As such, in the last three
to be a driving factor for the increase in apartment prices during years, South Jakarta always showed the highest YoY increment
the reviewed period. In addition, several projects that showed amongst other areas. Meanwhile, other non-prime areas expe-
commitment in the construction progress confidently increased rienced the slowest price increment, by less than 1% QoQ and
their asking price. Overall, the asking apartment price in Jakarta 4.6% YoY, due to the current sluggish market, coupled with the
moved gently by 0.8% QoQ and 4.6% YoY to IDR31.25 million/sq m. pressure in the supply side that eventually affects the overall
The CBD area and South Jakarta posted a similar increment price.
level of 1.5% and 1.4%, respectively. With the relatively lack of
new supply pipeline, the price of apartment in the CBD should
go up further. Compared to the other areas in Jakarta, the Apartment Price Changes in Jakarta Based on Area
CBDs expensive land price is the most significant factor to the (in IDR/sq m)
overall apartment price rate. Apartments in this location are Q3 2015 Q2 2016 Q3 2016 QoQ YoY
particularly targeted to a limited market, like high-net-worth- CBD 46,322,208 48,246,435 48,949,148 1.5% 5.7%
individuals (HNWI). South Jakarta has a wide range of target South Jakarta 34,699,316 36,421,523 36,923,783 1.4% 6.4%
markets, from middle-lower to luxury class apartments. Some
Non-prime Areas 22,429,188 23,300,386 23,454,168 0.7% 4.6%
parts of the area are considered as premium locations, whilst
Average 29,877,691 31,008,439 31,252,369 0.8% 4.6%
some parts are not. South Jakarta has always been attractive
as a residential location, due to the citys infrastructure and
APARTMENT FOR LEASE
Supply
For the last two consecutive quarters, Jakarta has not seen any Furthermore, there are no new projects either for serviced or
new serviced and non-serviced apartment projects. Thus, as non-serviced apartment in Jakarta during the reviewed period.
of the end of September 2016, the cumulative supply of apart- Having said that, the apartment-for-lease market is expecting
ments for lease stood at 8,780 units, consisting of 59% serviced to receive a total of more than 890 units from six projects until
apartment and 41% non-serviced apartment. For several years, 2019. Global brands, such as Oakwood, The Ascott Limited and
the CBD and South Jakarta are irreplaceable as homes for ex- Frasers Hospitality, will operate most of those projects. Fraser
patriate communities due to their proximity to business districts Residence Serenia Hills and Fraser Suites Kebon Melati proj-
and international schools. ects, both to be developed by Intiland, are still in the planning
stage.
Apartment for Lease Projects Pipeline

Beginning Year of
Name of Development Location Area #unit
Operation
Fraser Suites at Ciputra World 2 2017 Jl. Prof. Dr. Satrio CBD 200
Oakwood Premiere Jakarta at District 8 Senopati 2017 Senopati South Jakarta 378
Ascott Menteng Jakarta 2019 Menteng Central Jakarta 150
Fraser Residence Serenia Hills 2019 Cilandak, Lebak Bulus South Jakarta TBA
Fraser Suites Kebon Melati 2019 Kebon Melati, Tanah Abang South Jakarta TBA
Serviced Apartment at Lavish Kemang Residence 2020 Jl. Kemang Raya No.78 A South Jakarta 162

Occupancy Rental Rate
The average occupancy rate of apartment for lease in Jakar- The rupiah strengthening against the US dollar created an illu-
ta during Q3 2016 rose slightly from 71.5% to 73.0%, mainly sion of a lower rental rate during the reviewed quarter. Also, a
generated by new contracts of short-term lease in serviced few non-serviced apartments in South Jakarta have lowered
apartments. Demand from short-term tenants generally were their rental rates by 17% in order to attract potential tenants.
for business or leisure purposes, with rental period from daily This has resulted to a modest decline in the average rental
to three months rents. Such transactions helped increase the rate. Furthermore, as of Q3 2016 the average rental apartment-
occupancy for serviced apartment from 62.8% to 68.0% this for-lease rates in the CBD was recorded at IDR371,322/sq m/
quarter. Corporate clients may come from telecommunication month, whilst in South Jakarta, including non-prime areas, it
sector, embassy staffs, non-government organization (NGOs) was recorded at IDR223,747/sq m/month.
and expatriates who work on project-basis such as infrastruc-
ture works. Such clients generate demand for apartment and
push the increase in occupancy during this period. Further, Average Rental Rates of Apartment for Lease in
some serviced apartments, particularly which are located in the Different Locations (in IDR/sq m/month)
CBD, reported that they started to see growing number of inqui- Q2 2016 Q3 2016 QoQ
ries from Chinese expatriates.
CBD 374,061 371,321 -0.7%
In contrast with serviced apartment, occupancy of non-serviced South Jakarta (including non-prime 224,178 221,950 -1.0%
areas)
apartment fell slightly by 0.5% to 75.7% in the reviewed quar-
ter. Besides of the most reported reason of some existing lease
contracts expiration, some apartments reported that most of
new tenants are currently expatriates without family who do Amidst tight competition from the new and individually owned
not require such big unit like 3-BR of which most of old non- apartment units as well as limited number of expatriate arriv-
serviced apartments offer. This has resulted in some tenants als, the growth in the rental rate is expected to be moderate
turning to strata-title leases (individually owned apartment). compared to the previous years. Quarterly rental growth was
relatively stable, as apartments for lease increased their rental
rates on a yearly basis. Typically, the increment of rental rates
Average Occupancy Rates in Different Regions for serviced apartments are higher and more periodic com-
Q3 2015 Q2 2016 Q3 2016 QoQ YoY pared to non-serviced apartments, with 5% to 8% increment
CBD 79.5% 76.1% 77.6% 1.5% -2.0% per annum, even amid the current sluggish market. Meanwhile,
non-serviced apartments generally review new rental rates in a
South Jakarta 73.1% 70.4% 72.8% 2.4% -0.3%
two or three-year period with lower percentage.
Non-Prime area 70.0% 68.0% 69.0% 0.9% -1.1%
Concluding Thought
Average Occupancy Rates at Different Type of Overall, the economy will likely to grow moderately this year.
Apartments Bank Indonesia expects weaker government spending in the
Q3 2015 Q2 2016 Q3 2016 QoQ YoY second semester of 2016, which will further put downward
Leased 77.7% 76.2% 75.7% -0.5% -2.0%
pressure on the outlook as they lowered the growth forecast to
4.9%-5.3%, slightly down from the previous projection of 5.0%-
Serviced 67.1% 62.8% 68.0% 5.2% 0.9%
5.4% YoY. Therefore, we expect the market to remain quiet in
the coming quarter. However, recent policy initiatives including
interest rate cuts, economic stimulus packages and loosened
We anticipate the number of long-stay tenants in apartment for LTV ratio will brighten the long-term outlook. Furthermore, if
lease will gradually decrease. The tight competition with newly the ban on indent mortgage over unfurnished properties re-
operating and individually owned apartments will hamper the mains in place, although the down payment requirement has
increase of the overall occupancy rates of apartment for lease. been relaxed, this is likely to continue to keep the lid on demand.
The individually owned apartment units are the most viable
option for employees who have limited housing allowance be-
cause the individually owned apartments offer a more flexible
payment and affordable rates amid the gloomy condition par-
ticularly due to cost cutting measures implemented by a number
of multi-national companies.

Retail Sector Supply
Ferry Salanto Senior Associate Director | Research Jakarta

As of Q3 2016, the soft opening of PIK (Pantai Indah Kapuk)
In general, the performance retail market is relatively stag- Avenue Mall and Neo SOHO Mall brought the cumulative supply
nant with limited demand. Occupancy continued to decline to 4.54 million sq m, showing a modest growth YoY. Including
in the short-term due to the influx of new shopping centres. Bassura City Mall, Jakarta has provided three new shopping
centres in 2016 YTD. Jakarta is still expecting the small retail
The F&B retailers continued to underpin the major demand centre, Shopping Mall at Pancoran, South Jakarta, to begin op-
for retail space. eration at the remainder of 2016.
Rental rates is projected to grow marginally. A slightly upward Most future shopping centres are currently in the planning stag-
adjustment will occur at the upper class shopping centres. es. We only recorded two shopping centres being constructed
at the moment. They are Aeon Mall Garden City and Neo Harco
Going forward, the occupancy rate is forecasted to gradually Plaza. Several developers have also announced their future
improve given a limited additional supply over the next few projects, such as Intiland (Kebon Melati Superblock), Agung Se-
years. dayu (Menara Jakarta), Grand Dhika Daan Mogot (Adhi Karya)
and Daan Mogot City (China Harbour). All these future projects
Forecast at a glance are expected to start construction in 2017.
Supply Cumulative Supply of Retail Space in Jakarta

Cumulative supply grew 2% YTD and stood at 4.54
million sq m in Jakarta. Retail space in Jakarta 5,000,000
continues to be limited until the end of 2017. The 4,500,000
growth in supply was also lower in the BoDeTaBek
area, which will see a future supply larger than that 4,000,000
in Jakarta. Cumulative supply remained at 2.4 mil- 3,500,000

lion sq m. 3,000,000
Demand 2,500,000
A relatively stable occupancy of above 80% was 2,000,000
generally underpinned by the work of F&B tenants
sq m
1,500,000
both in Jakarta and BoDeTaBek. Newly operating
malls seemed to continue to secure spaces between 1,000,000
5,000 sq m and 8,000 sq m in size when they first 500,000
started operating.
0
Occupancy
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
The overall occupancy decreased 1.1% QoQ to

84.9%. Limited future supply and a high number of
committed tenants in newly operating malls give a Existing Supply Annual Supply Supply YTD Future Supply
fair forecast that occupancy would stabilise by the Source: Colliers International Indonesia - Research
end of 2016.
Rent
Average asking rent is projected to increase because
some middle-upper class shopping centres are re-
viewing their current asking rents in preparing for
further adjustments. With the expected market im-
provement, several landlords are reviewing to re-
layout tenancy mix in order to attract more people
and charge higher rents.
Annual Retail Supply in Jakarta Whilst retail space supply in the CBD area and Central Jakarta
did not progress, other areas have been actively supplying ad-
200,000 ditional spaces since 2015. Upon opening PIK Avenue Mall, the
total supply in North Jakarta remained as the highest as of Q3
2016. East Jakarta is still the lowest area with shopping centre
150,000 population or only recording around 30% of the total supply in
North Jakarta. Going forward, Central, West and East Jakarta
are expected to become major contributors of the future supply
100,000
until 2020.
Cumulative Supply Based on Area in Jakarta

sq m
50,000
West
Jakarta
0 East
Jakarta
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
North
Jakarta
Annual Supply Supply YTD Under Construction In Planning
South
Source: Colliers International Indonesia - Research Jakarta
Central
Cumulative Supply Based on Marketing Scheme in Jakarta
Jakarta CBD
3,500,000
0 200,000 400,000 600,000 800,000 1,000,000
3,000,000 sq m
Cumulative Supply 2016YTD Future Supply in 2016F - 2019F
2,500,000
2,000,000
1,500,000 Greater Jakarta

sq m
1,000,000 The cumulative supply remained at 2.4 million sq m and grew

very moderately YoY. Two retail centres are pursuing comple-
500,000 tion work to achieve their target opening at the end of 2016.
Despite anticipating a modest growth in supply in 2017, BoDe-
0 TaBek will see around 740,000 sq m of new retail space until
2019. Apart from the 2016-2017 supply, most of the upcoming
2010
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
shopping centre projects in BoDeTaBek are in the planning stag-

For Lease For Sale es, and only 46% of the total future supply is under construction
as of Q3 2016.
About 68% of the total retail spaces or around 3.1 million sq m

are offered for lease. There are 88 existing shopping centres for
lease in Jakarta. Meanwhile, the total existing number of strata-
title shopping centres (known as trade centres) was recorded
at 1.44 million sq m as of Q3 2016. For the last couple of years,
trade centre development has become less popular, since some
of these projects are not performing well.

Cumulative Supply in Greater Jakarta (BoDeTaBek) Cumulative Supply Based on Area in Greater
3,000,000
Jakarta (BoDeTaBek)
2,500,000 Bekasi
2,000,000
Tangerang
1,500,000
sq m
1,000,000 Depok
500,000
Bogor
0
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
0 300,000 600,000 900,000 1,200,000
Existing Supply Annual Supply Supply YTD Future Supply

sq m
Cumulative Supply 2016YTD Future Supply in 2016 - 2019F
The BoDeTaBek area is expecting to see larger future supply

(almost 600,000 sq m) in 2018-2019. These include two fu- As of Q3 2016, strata-title retail spaces for sale made up only
ture projects by Aeon in Sentul and Deltamas, Plaza Indonesia 32% of the total supply, but BoDeTaBek will still see future stra-
Jababeka and a huge project by Lippo Group in Karawaci. Most ta-title shopping centres. Bekasi Trade Centre 2 and Vivo Sentul
future shopping centres will provide spaces over 50,000 sq m, Trade Mall (within Cimandala City) will provide 69,000 sq m
which will contribute 60% of the total supply in BoDeTaBek in additional retail space for sale in 2016-2019.
2018-2019.
Cumulative Supply Based on Marketing Scheme in
Annual Retail Supply in Greater Jakarta Greater Jakarta (BoDeTaBek)
(BoDeTaBek)
2,500,000
350,000
300,000 2,000,000
250,000
1,500,000
200,000
1,000,000
150,000
sq m
sq m
100,000
500,000
50,000
0
0
2010
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
2011
2015
2013
2010
2017F
2012
2014
2019F
2018F
2016F
For Lease For Sale

Annual Supply Supply YTD Under Construction In Planning
Most future retail space in greater Jakarta area will be contrib-

uted by Bekasi region, contributing 43% of the total future sup-
ply from 2016 to 2019. There will be eight new shopping centres
in Bekasi during that period.

New Supply Pipeline
nla development
shopping centre location region developer
(sq m) Status
jakarta
2016
Shopping Mall @ Pancoran Pancoran South Jakarta 8,000 Agung Podomoro Under Construction
2017
New Harco Plaza Glodok West Jakarta 60,000 Agung Podomoro Under Construction
2018
Aeon Mall Garden City Cakung East Jakarta 71,000 Aeon Under Construction
Mall @ Green Pramuka City Pramuka North Jakarta 30,000 Duta Paramindo Sejahtera In Planning
Mal Puri Indah 2 Puri Indah West Jakarta 50,000 Antilope Madju Puri Indah In Planning
Shopping Mall at Podomoro Park Buaran East Jakarta 40,000 Agung Podomoro In Planning
2019
Grand Metro Cipulir Cipulir South Jakarta 30,000 Priamanaya In Planning

Pondok Indah Mall 3 Pondok Indah South Jakarta 60,000 Metropolitan Kentjana In Planning
bodetabek
2016
Bekasi Trade Center 2 Bulak Kapal Bekasi 56,000 Gapura Prima Under Construction
Q Big BSD City Tangerang 69,000 Sinarmas Land Under Construction
2017
Grand Dhika City Mall Bekasi Bekasi 24,000 Adhi Persada Realty Under Construction
2018
Vivo Sentul Lifestyle Cibinong Bogor 20,000 Megapolitan Under Construction

Vivo Sentul Trademall Cibinong Bogor 13,000 Megapolitan Under Construction
Plaza Indonesia Jababeka Jababeka Bekasi 55,685 Plaza Indonesia & Graha Buana Cikarang Under Construction
AEON Mall Sentul Sentul Bogor 100,000 Aeon Under Construction
AEON Mall Deltamas Deltamas Bekasi 90,000 Aeon In Planning
Living World Jababeka Jababeka Bekasi 18,000 Kawan Lama In Planning
2019
AEON Mall Bogor Cibinong Bogor 20,000 Aeon In Planning

Hollywood Central Cikarang Bekasi 25,000 Graha Buana Cikarang In Planning
Embarcadero Bintaro Tangerang 30,000 Lippo Karawaci In Planning
Kota Harapan Indah Bekasi Bekasi 51,000 Hasana Damai Putera In planning
Lippo Grand Mall Karawaci Tangerang 120,000 Lippo Karawaci In planning
Mall at Pesona Square Juanda Depok 30,000 Menara Depok Asri In Planning
Shopping Mall at Kota Wisata Cibubur Bekasi 45,000 Sinarmas Land In Planning
Shopping Mall at Green Lake Cimanggis Depok 20,000 Cempaka Group In Planning

Absorption YTD Comparison: Number of Vacant Spaces Based
on Mall Grade
Jakarta 180,000
Occupancy Rates
150,000
100%
90% 120,000
80%
70% 90,000
60%
sq m
60,000
50%
40%
30,000
30%
20% 0
10% Upper Classes Middle Classes Middle-Lower
0% Classes
2010
2012
2014
2011
2015
2013
2016YTD
2015 2016YTD
CBD Outside the CBD Jakarta
Source: Colliers International Indonesia - Research Based on area, occupancy grew marginally and stood at 92%
in the CBD. Most upper class shopping centres maintained their
occupancy rates to stabilise above 90%, over the last five years.
Some major tenants recently opened their stores in the two new Meanwhile, the occupancy rate was recorded at 82.3% outside
shopping centres in Jakarta, namely Central Department Stores the CBD and decreased almost 2% QoQ. Occupancy in South
(at Neo SOHO Mall within Podomoro City) and H&M and Uniqlo (excluding CBD), East and North Jakarta was above 80%. West
(at PIK Avenue Mall). These two malls provide around 70,000 Jakarta recorded 77.3% occupancy and showed a declining
sq m of new retail space, and so far contributed to the decline trend YTD. Whilst being the lowest, Central Jakartas occupancy
in occupancy to 84.9%, or slipped moderately from the previ- was relatively flat YTD, currently at 73.2%.
ous quarter. Although the projected occupancy will continue to
decrease, the absorption is expected to be slightly higher by
the end of 2016. Without calculating the absorption from newly YTD Comparison: Number of Vacant Spaces Based
operating malls, the spaces absorbed were recorded at 15,000 on Area
sq m in 2016 YTD, higher than the entire year of 2015. Middle
and upper class shopping centres contributed to the total ab- 150,000
sorption YTD. Newly opened shopping centres also secured a
high-commitment occupancy level since they started operating.
120,000
Each of the four shopping centres that began operation in 2015
and 2016 recorded a committed occupancy level of above 50%.
One of the future shopping malls in 2016 has secured tenants, 90,000
particularly from the food and beverages industry, even before
they opened.
60,000
sq m
Based on mall grade, the average occupancy rates were rela-

tively flat for all classes. Occupancy rates were maintained at 30,000
86% and 77% at the middle and middle-lower class shopping
centres. Conversely, upper class shopping centres showed a
decreasing trend in occupancy rates QoQ. A number of com- 0
mitted tenants have not yet opened their stores at the newly CBD Central South North East West
operating malls and brought the occupancy rates to 87.5%, fall- Jakarta Jakarta Jakarta Jakarta Jakarta
ing by 3.4% QoQ.
2015 2016YTD

Greater Jakarta 2014. Newly operating shopping centres also brought the aver-
age occupancy rates to increase in Tangerang and Bekasi, al-
Occupancy Rates though gradually.
100%
More than 100,000 sq m of future additional supply will likely
90% bring the occupancy rate to decline by the end of 2016. Nev-
ertheless, some committed anchor tenants have been secured
80%
currently, and it is expected to bring the projected occupancy to
70% stabilise at above 80%.
60%
50% YTD Comparison: Number of Vacant Spaces Based

40%
on Region
30% 125,000
20%
10% 100,000
0%
2010 2011 2012 2013 2014 2015 2016YTD 75,000
Bogor Depok Tangerang Bekasi All Area

50,000
sq m
Most regions showed increasing trend and maintained oc- 25,000

cupancy at between 80% and 90% since 2014. Currently in
Bogor, however, occupancy slipped to 78.6% due to addi-
tional supply in the previous quarter. The overall average oc- 0
cupancy showed a soft growth in BoDeTaBek YoY, from 83% Bogor Depok Tangerang Bekasi
to 84%. Other regions in the greater Jakarta area registered
occupancy level at between 83% and 87%, with Depok reach- 2015 2016YTD
ing the highest. Thanks to food and beverage tenants, occu- Source: Colliers International Indonesia - Research
pancy accelerated in a Depok shopping centre that opened in
New Tenants at Some Shopping Centres in Jakarta

Shopping Centre area new tenant
Lippo Mall Kemang South Jakarta Matahari
Committed Tenants at New and Future Shopping Centres in Jakarta

Shopping Centre area tenant name
Shopping Mall Pancoran South Jakarta Excelso, Nannys Pavilion, Starbucks, Coffee Bean, Baskin Robins, Chatime, Wendys, Solaria
Neo Soho Mall West Jakarta Central Dept Store, Kid Station, Electronic Solution, Pedro, The Body Shop, Clarks, Staccato, Polo Ralph
Lauren, Samsonite, Wrangler, Wood, Cotton On, Mango, Nine West, Charles & Keith, Armani Jeans, Furla,
Ta Wan, Pizza Hut, Pepper Lunch, Muji, Pedro, Kidz Station, Electronic Solution, Cotton On
PIK Avenue Mall North Jakarta Uniqlo, The Food Hall, XXI, Ace Hardware, Golds Gym, Informa, H&M, Optik Melawai, Sports Station, Gior-
dano, Levis Store, Timberland, Pizza Hut, Starbucks, Excelso, Kidz Station
Bassura City Mall East Jakarta XXI, Lion Superindo, Optik Melawai, Sports Station, The Body Shop, Starbucks, Imperial Kitchen, Wood

Average Rental Rates Average Asking Rents Based on Mall Grades
IDR900,000
Jakarta
IDR750,000
Average Asking Rents in Jakarta
IDR900,000 IDR600,000
IDR750,000 IDR450,000
IDR600,000 IDR300,000
IDR450,000 IDR150,000
IDR300,000 IDR0
2010
2012
2014
2011
2015
2013
2016YTD
IDR150,000
IDR0 Upper Classes Middle Classes Middle-Lower Classes

2010
2012
2014
2011
2015
2013
2016YTD
CBD Outside CBD Jakarta Asking Rents Based on Area

Source: Colliers International Indonesia - Research IDR3,000,000
In Jakarta, the average asking rent rose 4.2% YTD and was re- IDR2,500,000
corded at IDR566,087/sq m/month. The average rent in the CBD
was registered at IDR855,965/sq m/month, a 3.2% increase
IDR2,000,000
from 2015. Contributed by two newly operating shopping cen-
tres, the average asking rent increased 6% YTD to IDR468,994/
sq m/month outside the CBD. The growth of asking rents out- IDR1,500,000
side the CBD area may be higher, but they were recorded to
still be below the average market tariffs in Jakarta. Asking rent
IDR1,000,000
in South Jakarta recorded the highest at IDR532,735 amongst
other regions in Jakarta, whilst Central Jakarta registered the
lowest average rent at IDR316,246/sq m/month. In West, North IDR500,000
and East Jakarta, asking rents were offered at an average of
between IDR327,000 and IDR512,000/sq m/month. IDR0
CBD Central South North East West
As of Q3 2016, only less than 10 shopping centres offered rents
Jakarta Jakarta Jakarta Jakarta Jakarta
above market tariffs. All of them are upper class shopping cen-
tres, and they bring the average asking rent to IDR798,656/sq Source: Colliers International Indonesia - Research
m/month, down on last years 3%. Asking rents at two newly
operating upper class shopping centres were lower than the
already existing ones. Rental performances at middle and mid- Greater Jakarta
dle-lower class shopping centres have seen a steady increase, Despite the upward trend, the average growth has been slow
recording asking rents at IDR423,124 and IDR281,506/sq m/ for the last two years. Asking rents only grew 3.4% YTD to
month, respectively. Both increased around 6% YTD. IDR356,175/sq m/month. On average, shopping malls in
Tangerang have a relatively expensive rental tariff, with the
highest average asking rents at IDR380,795/sq m/month as of
Q3 2016. Bogor and Bekasi recorded average asking rents of
IDR372,674 and IDR355,623/sq m/month, respectively. Mean-
while, the average asking rent in Depok remained the lowest at
IDR253,489/sq m/month

Average Asking Rents in BoDeTaBek of middle-lower class shopping centres was at IDR101,385/sq
m/month. Overall, the average service charges for all shopping
IDR400,000 centres in Jakarta stood at IDR126,297/sq m/month as of Q3
IDR350,000
2016.
IDR300,000 Average Service Charges in Jakarta

IDR250,000 IDR180,000
IDR200,000
IDR150,000
IDR150,000
IDR120,000
IDR100,000
IDR90,000
IDR50,000
IDR60,000
IDR0
2011
2015
2013
2016YTD
2010
2012
2014
IDR30,000
IDR0
2011
2015
2013
2016YTD
2010
2012
2014
The Range of Asking Rents in BoDeTaBek CBD Outside the CBD Jakarta
IDR1,000,000
IDR800,000 Service Charge Based on Area

IDR300,000
IDR600,000
IDR250,000
IDR400,000
IDR200,000
IDR150,000
IDR200,000
IDR100,000
IDR0
Bogor Depok Tangerang Bekasi IDR50,000

IDR0
CBD Central South North East West
Service Charges Jakarta Jakarta Jakarta Jakarta Jakarta
Jakarta Source: Colliers International Indonesia - Research
Service charge in Jakarta moved regularly around 10% YoY In the CBD, there is a big gap between the minimum and
since 2014. Average service charge surprisingly increased maximum service charges, with an average service charge at
to IDR142,006/sq m/month, due to the adjustment made at IDR154,733/sq m/month. The growth of service charges in the
middle class shopping centres, showing the highest increase CBD was lower than that outside the CBD. As of Q3 2016, ser-
of 17.2%. The increase created a narrower gap between mid- vice charge rose to IDR117,030/sq m/month outside the CBD,
dle and upper class shopping centres. As of Q3 2016, some growing significantly at 13.6% YTD. West, North and South
upper class shopping centres adjusted their service charge Jakarta (excluding CBD) maintained their service charges at
by 10% up to 20%, bringing their average service charge to between IDR100,000 and IDR140,000/sq m/month. The aver-
IDR151,184/sq m/month. Meanwhile, the average service charge age for East and Central Jakarta (excluding CBD) was below
IDR100,000/sq m/month, at least since 2014.

Greater Jakarta Service Charge Based on Region
Most of the BoDeTaBek region maintained a service charge IDR160,000
growth at between 3% and 7%, except Depok, which had a more
substantial growth than other regions, up by 15% YTD. The IDR140,000
range of service charges were recorded at between IDR35,000
and IDR150,000/sq m/month, with overall adjustment up by 6% IDR120,000
YTD, bringing the average cost to IDR90,494/sq m/month. As
of Q3 2016, 14 shopping centres registered service charges IDR100,000
above IDR100,000/sq m, or double those in 2015.
IDR80,000
Service Charges in BoDeTaBek IDR60,000
IDR100,000 IDR40,000
IDR90,000
IDR20,000
IDR80,000
IDR70,000 IDR0
Bogor Depok Tangerang Bekasi
IDR60,000
IDR50,000 Source: Colliers International Indonesia - Research
IDR40,000
IDR30,000
IDR20,000
Concluding Thought
IDR10,000
The rise of ecommerce was a legitimate threat, and traditional
malls are dying. The malls that succeed in the future will offer
IDR0 unique attractions and entertainment.
2010
2012
2014
2011
2015
2013
2016YTD
Exchange rate is forecasted at IDR13,300 to IDR14,000 against

the US dollar. This could influence retailers to order and trade
Source: Colliers International Indonesia - Research goods, and then push to maintain stable asking rents in the
future. A slightly increasing asking rent will likely be generated
by upper class shopping centres.
The projected occupancy is expected to improve, by projecting

a limited additional supply by the end of 2016 to 2017.

Industrial Estate Industrial Land Supply
Currently, industrial estates with huge potential land for de-
Sector velopment opt to retain the stock until they see interested big
buyers. If the scale of potential enquiries is relatively small,
they will not release the stock. In general, the industrial market
needs sizeable and anchor-type buyers as a trigger to boost
Ferry Salanto Senior Associate Director | Research industrial sales.
Since early 2016, the industrial market has been generally Potential land expansion may come from one operating indus-
characterised by slow absorption. Despite recording higher trial estate in the east area, which holds a permit to open about
sales volume during the third quarter, the overall sales perfor- 210 hectares of land in the future. Currently, there is no definite
mance does not suggest an improvement, particularly when decision from the management to initiate expansion work, most
compared to the total sales registered in the previous years. probably because they need to secure big buyers prior to the
Nevertheless, the long-term outlook for the industrial market opening of the next stage of their development.
is still vibrant, especially when looking at the potential pent-
up demand. Similarly, Trans Hexa Karawang, a consortium of several ma-
jor industrial developers that hold the biggest land banks to be
Forecast at a glance developed, is still waiting for big investors before they totally
start operating the estate. Big buyers/investors are catalysts
Supply for most of the new industrial estates to confidently open in
There will be no immediate decision for the opening the area, because the existence of such big industries will lure
of sizeable new industrial land. Most of the potential smaller supporting industries.
raw land to be developed will need to wait for a com-
mitted big buyer before initiating the expansion. For several quarters, Delta Silicon industrial estate has focused
on selling its latest product, Delta Silicon 8. Total gross area at
Delta Silicon 8 is around 257 hectares. Of the saleable industri-
Demand
al land, about 40% has been taken up, leaving around 90 hect-
Going forward, the logistics sector will remain the
ares net area offered for sale. From the four active industrial
main driver for the industrial market to grow. Other
estates in Bekasi, a total of 204 hectares is ready to be sold.
sectors that will help underpin the industrial sector
include automotive, food, consumer goods and elec-
There are a number of industrial estates in Karawang hold-
tronics.
ing big parcels of land for future market expansion. Most of
these land banks will remain as stock until there is a trigger
Prices from big companies that require sizeable land. Similarly, the
Prices will remain stagnant at least by the end of this
two industrial estates in Serang have also introduced the next
year, because some industrial estates with sound
stage of their development. In general, much like in other sec-
sales performance have already increased prices.
tors, industrial landlords will wait for serious investors with
Early 2017 will likely become the momentum of the
commitment to buy before initiating any development work on
industrial market to move forward, and to sustain
their land.
this, prices will be maintained at their current level.
Industrial Land Stock Status in Some Active and Amidst a general sluggish sales performance, Greenland Inter-
Future Industrial Estates national Industrial Center (GIIC) broke the deadlock by recording
significant transactions this quarter, making it the industrial es-
4,000 tate with the highest sales volume in 2016 YTD. GIICs reported
total sales for the quarter was 42.6 hectares, comprising four
3,500
transactions to two companies in the logistics and warehouse
3,000 business, one automotive company, and one food industry com-
pany. The 42.6 hectares of land transacted in GIIC composed
2,500 76% of the total sales this quarter, which implies a lackadaisical
industrial market.
2,000
Hectares
1,500 As the overall transaction volume was mainly underpinned by

GIICs good performance, the remaining 24% of the total trans-
1,000 action was composed by small deals.
500
4.3 hectares of land were handed over by KIEC industrial estate
0 to a smelter company, which converts raw nickel to a more
Bogor Tangerang Karawang Bekasi Serang
ready-to-use material. The deal became the biggest for KIEC for
the year, although they are anticipating for a significant amount
Existing Stock Remaining Unsold Land of sales going forward.
Potential Land To Be Developed
In Bekasi, Bekasi Fajar (BFIE) concluded the smallest sales vol-
ume (2.5 hectares) this quarter. In the previous two quarters,
BFIE recorded 16.7 hectares of industrial land. The existing ten-
ant that expands the business and plans to utilise the land for
Absorption logistics purpose concluded the latest transaction in BFIE.
Land Absorption in Q3 2016 Jababeka in Bekasi reported a total of 2.8 hectares sold to lo-
gistics and trading companies. Albeit lower than last quarters
Greenland International Industrial figure, total sales in Jababeka are quite good, concerning the
Centre current slowdown in market situation.
Krakatau Industrial Estate Cilegon
Meanwhile, a 2.2-hectare deal with Modern Cikande industrial
Jababeka estate was composed of three transactions chemical com-
pany, plastic injection and pharmaceutical. For several quarters,
Bekasi Fajar sales performance in Modern Cikande has been relatively stable.
Still dominated by logistics, Delta Silicon sold 1.6 hectares of
Modern Cikande land to a company in the cool storage business. Another smaller
deal was concluded in Delta Silicon to an auto-parts company,
Delta Silicon
which together with the previous deal, closed the quarter with
a total of 2 hectares.
KIIC
Millennium
Another small land transaction was closed by KIIC, although this
industrial estate has consistently recorded sales in every quar-
ter in 2016 YTD. Meanwhile, a new investment arrived to this
0 10 20 30 40 50
estate a single 1.4-hectare transaction driven by an auto-parts
hectares company from Japan.
Twelve units of ready-to-use warehouses with a land size of
approximately 1,000 sq m each were sold to several companies
at Millennium industrial estate in Tangerang. Total land size of
these transactions was around 1.2 hectares.

Land Absorption 2016YTD Annual Industrial Land Absorption
1,400
Greenland International
1,200
Bekasi Fajar
1,000
Modern Cikande
800
Jababeka
KIIC 600
Hectares
Millennium 400
Krakatau Industrial Estate 200
Delta Silicon
0
2006
2008
2009
2007
2010
2012
2014
2011
2015
2013
2016YTD
Suryacipta
0 10 20 30 40 50
Jakarta Bogor Tangerang Karawang Bekasi Serang
hectares
Total land transaction during the quarter in the greater Jakarta Active Sectors Acquiring Industrial Land 2016YTD
area constitutes 59 hectares, which was the highest for the last
three consecutive quarters. Total industrial land 2016 YTD ac- Logistics/
counted for 107.41 hectares, still far (only around 30%) from Warehousing
48%
the total 347.5 hectares made last year. To catch up with last Packaging
years total sales performance, more than 200 hectares of land 1%
should be transacted; this is unlikely to be achieved within the Metal
4% Molding
remaining three months.
2%
Developer
Like in the previous quarter, from logistics and warehouse, the 1%
most active remaining industrial sectors are those who pur- Others
posely build for their clients or companies for their internal use. 3%
Year-to-date figure showed that 48% or about 51 hectares of
the total industrial land transactions are for warehouse or logis-
Manufacturing
tics purposes. This has been the general trend since last year,
1%
after the domination of the automotive sector. There were still Oil & Gas
Automotive
some automotive-related transactions, but we have not seen Related
0% Chemicals 21%
any transactions made by anchor buyers in order to pull other Steel-related Food &
3% Plastics
supporting industries related to automotive. Despite small, the 1% Pharmaceutical 2% Beverage
market is still anticipating a number of expanding automotive 3% 10%
industries in the future, as reported by some industrial estates. Source: Colliers International Indonesia - Research
Enquiries from this sector still exist.
Another active sector is the food industry, which has always

been a demand generator for industrial land, together with the
consumer goods industry. Since they address consumers basic
needs, food and consumer goods industries will always expand
in the future.

Land Prices Industrial Land Prices and Maintenance Costs
Greater Jakarta Industrial Land Prices (in USD equivalent)
maintenance costs
Land price (in USD/sq m)
USD250.00 region (in usd/sq m/month)
USD225.00 lowest highest average lowest highest average

Bogor 120.0 213.2 166.6 0.06 0.06 0.06
USD200.00
Bekasi 190.3 243.6 222.1 0.06 0.08 0.07
USD175.00
Tangerang 159.9 152.3 156.1 0.03 0.08 0.06
USD/sq m
USD150.00
Karawang 170.0 200.0 188.8 0.05 0.10 0.06
USD125.00 Serang 152.3 167.5 159.9 0.03 0.05 0.04
USD100.00 *1USD = Rp 13,136
USD75.00
USD50.00
USD25.00 Leasing Activities
USD0.00
The main three industrial estates with products for lease (land
2011
2015
2013
2006
2008
2009
2016YTD
2007
2010
2012
2014
and buildings) reported a dormant leasing activity during the

quarter. Since the second quarter of 2015, CCIE in Bogor has
reported zero leasing transactions. This suggests that market
Bogor Bekasi Tangerang Karawang Serang
has been relatively inactive in the region. Likewise, Kota Bukit
Source: Colliers International Indonesia - Research Indah in Karawang also indicated a slow market, highlighted
only by a lease renewal of the existing tenants. Rental tariff for
The shortage in the land stock generally triggered price adjust- both land and building remained unchanged as of Q3 2016.
ment. This happened to Millennium industrial estate in Karawa-
ng on the back of limited land supply. For the last quarters, they Maintenance Cost
have revised the land price three times, i.e. from IDR1.9 million
to IDR2.1 million, and now at IDR2.5 million/sq m as the cur- Greater Jakarta Industrial Maintenance Costs
rent offering price. The adjustment was in line with a quite im-
pressive sales performance in Millennium, particularly for those USD0.10
buying warehouses or standard factory buildings. USD0.09

USD0.08
Other than Millennium, prices of industrial land have been rela-
USD0.07
tively flat, and there is a tendency of offering bigger discounts
(although this is not entirely applicable in all industrial estates) USD0.06
for prominent transactions. Last quarter, we have witnessed USD0.05

USD/sq m/month
two industrial estates cut their offering price, and today, indus- USD0.04
trial landlords generally tend to be more accommodative, amidst
USD0.03
a sluggish market.
USD0.02
Prices within the same estate might be offered differently de- USD0.01
pending on the shape, contour and location of the land. In gen- USD0.00
eral, the price gap between a good land in a strategic location
2006
2008
2009
2007
2010
2012
2014
2011
2015
2013
2016YTD
and the least preferred land is around 10%.
Since 2012, industrial prices in several regions have reached Bogor Bekasi Tangerang Karawang Serang
a plateau, with minor volatility mainly due to the adjustment in
the exchange rate. Although there were some minor price in- Source: Colliers International Indonesia - Research
creases, there were no price surges in the last four years.
Going ahead, it is unlikely to see price adjustment in the remain-

ing three months to close the year. Industrial landlords will re-
main cautious about the market, although some are anticipating
a brisk sale, which would materialise either this year or early
next year.

Until now, service charge remained flat. Landlords will likely
to maintain the rate for some periods going ahead. Next year,
we anticipate an increase in clean water tariff, apart from the
service charge. Thus far, majority of industrial estates are still
quoting maintenance tariff in US dollars.
Concluding Thought
Amid a gloomy, short-term industrial market outlook, a poten-
tial pent-up demand would materialise probably at the yearend
or early next year. Several industrial estates have identified
potential enquiries particularly from the logistics, consumer
goods, food and automotive sectors. The needs for warehouse
would increase mainly due to the needs of the automotive in-
dustry and the expansion of electronic manufacturers, most
of which are from China. Industries such as food processing,
chemicals and other heavy industries will likely expand further
in the western part of Jakarta.
As Japan fell deeper into deflation, funds will flow overseas,

including emerging markets, such as Indonesia. We felt that a
number of investment funds from developed Asian countries
would pour into the market, and as a result will help grow the
industrial sector as well.

Hotel Sector Hotel Supply
Ferry Salanto Senior Associate Director | Research Starred Hotel

Five new 3-star and 5-star hotels opened in Q3 2016 in
In Q3 2016, hotels in Jakarta performed better and were more
Jakarta.
stable than in the previous quarter. The governments deci-
sion to further cut spending on business meetings and work-
Maven Hotels & Resorts opens their fourth property, a 3-star
ing trips has yet to create a significant impact to the hotel
hotel located in Fatmawati, South Jakarta, providing 84 rooms.
industry.
By the end of Q3 2016, there were 10,665 3-star hotel rooms
in Jakarta.
Forecast at a glance
The 4-star Intiwhiz Hospitality Management opens a new
Supply 4-star hotel under the Grand Whiz brand in Lebak Bulus, South
The domination of 4-star hotels in Jakarta will con- Jakarta, providing 132 rooms. Another newly opened 4-star
tinue until the end of 2016. By the end of 2016, Ja- hotel is Starwood Hotels & Resorts with the first Four Points
karta expects to see 3,443 additional rooms, com- hotel in Jakarta located in Jalan Thamrin. Four Points offers
prising of 902 3-star hotel rooms, 2,291 4-star hotel 164 rooms, and thus the number of new 4-star hotel rooms
rooms, and 250 5-star hotel rooms. reached 296 in Q3 2016.
Performance In the 5-star category, Four Seasons Jakarta exchanged their

Looking at the performance in 2016, hotels tend to location with St Regis and opened at Capital Place Complex
perform relatively stable. Average occupancy rate in Gatot Subroto, providing 125 rooms. Another 5-star hotel,
(AOR) and average daily rate (ADR) are slightly low- The Westin Jakarta, opened in Q3 2016, located in the same
er, but not to a significant level. Aside from the new compound with Gama Tower and providing 283 rooms. In Q3
and upcoming supplies, the new decision that was 2016, 408 new 5-star hotel rooms were added to the Jakarta
announced by the government also had an impact to hotel market.
the hotel sector.
By the end of Q3 2016, there were 38,483 hotel rooms in Ja-
karta, comprising of 10,665 3-star hotel rooms, 15,217 4-star
hotel rooms, and 12,590 5-star hotel rooms. In the remainder
of 2016, the Jakarta hotel market is expecting 3,443 additional
rooms.
Cumulative Supply of Starred Hotel Projects in Cumulative Supply of Starred Hotel Rooms in
Jakarta Jakarta
100 21,000
90 18,900
80 16,800
70 14,700
60 12,600
50 10,500
40 8,400
30 6,300
20 4,200
10 2,100
0 0
2010
Q2 2016
2017F
2012
2014
2011
2015
2013
2019F
2018F
2016F
2010
Q2 2016
2017F
Q3 2016
2012
2014
Q1 2016
2011
2015
2013
2019F
2018F
2016F
Q3 2016
Q1 2016
3-star 4-star 5-star 3-star 4-star 5-star

New Pipeline
projected
STARRED STR CHAIN
HOTEL NAME LOCATION REGION ROOMS project status completion
RATING SCALE RATE
TIME
Harper TB Simatupang 3-star undefined TB Simatupang South Jakarta 180 Opening 2016
preparation
Prima Hotel 3-star undefined KH Wahid Hasyim Central Jakarta 150 Under construction 2016
Ibis Styles Jakarta PIK 3-star Midscale Class Pantai Indah Kapuk North Jakarta 200 Under construction 2016
Yello Hotel Hayam Wuruk 3-star undefined Hayam Wuruk Central Jakarta 372 Under construction 2016
Des Indes Boutique Hotel 3-star undefined HOS Cokroaminoto Central Jakarta 97 Under construction Q2 2017
Ibis Styles Tanah Abang 3-star Midscale Class Tanah Abang Central Jakarta 225 Post Tender 2017
Holiday Inn Express Simatupang 3-star Upper TB Simatupang South Jakarta 110 Under construction 2017
Midscale Class
Santika TB Simatupang 3-star Upper Upscale TB Simatupang South Jakarta 160 Deferred Q3 2018
Class
Hotel Pasar Senen 3-star undefined Pasar Senen Central Jakarta 200 Under construction 2017
Whiz Prime Hayam Wuruk 3-star undefined Hayam Wuruk Central Jakarta 130 Under construction 2018
Total 3-star hotel rooms 1,824
Holiday Inn Hotel & Resorts 4-star Upper Gajah Mada Central Jakarta 447 Opening Q4 2016
Jakarta Gajah Mada Midscale Class preparation
Swiss-Belhotel Kirana Avenue - 4-star Upscale Class Kelapa Gading North Jakarta 316 Opening 2016
Kelapa Gading preparation
Aston Titanium Cijantung 4-star Upscale Class Cijantung East Jakarta 225 Opening 2016
preparation
Suite Novotel Jakarta PIK 4-star Upscale Class Pantai Indah Kapuk North Jakarta 220 Opening 2016
preperation
Aston Sunter Hotel 4-star Upscale Class Sunter North Jakarta 150 Under construction 2016
Ancol Courtyard Marriott Hotel 4-star Upscale Class Ancol North Jakarta 310 Opening 2016
preparation
Swiss-Belhotel Rasuna 4-star Upscale Class Rasuna Epicentrum South Jakarta 323 Under construction 2016
Epicentrum
continued

projected
STARRED STR CHAIN
HOTEL NAME LOCATION REGION ROOMS project status completion
RATING SCALE RATE
TIME
continuation
Harris Hayam Wuruk 4-star Upscale Class Hayam Wuruk Central Jakarta 240 Under construction Q1 2017
Novotel Cikini 4-star Upscale Class Cikini Central Jakarta 286 Under construction Q2 2017
aloft Kebon Jeruk 4-star Upscale Class Kebon Jeruk West Jakarta 140 Under construction Q3 2017
aloft Wahid Hasyim 4-star Upscale Class Wahid Hasyim Central Jakarta 170 Under construction Q4 2017
Prama Gatot Soebroto - Kemang 4-star undefined Kemang Raya South Jakarta 200 Concept 2017
Morrissey Hotel 4-star undefined Wahid Hasyim Central Jakarta 343 Deferred 2017
Grand Clarion Jakarta 4-star undefined Otto Iskandar Dinata East Jakarta 272 Under construction 2017
Mercure Hotel Matraman 4-star Upscale Class Matraman Raya South Jakarta 150 Deferred 2017
Hotel Santika Premier Yos 4-star Upper Upscale Yos Sudarso North Jakarta 150 Deferred 2017
Sudarso Class
Mercure Kemang 4-star Upscale Class Kemang South Jakarta 80 Deferred Q1 2018
Oyama Centre 4-star Not define yet Yos Sudarso North Jakarta 160 Under construction 2018
aloft Jakarta Simatupang 4-star Upscale Class TB Simatupang South Jakarta 180 Under construction 2018
Radisson RED Jakarta 4-star Upscale Class Satrio CBD 36 Planning stage 2019
Alila - SCBD lot 11 5-star Luxury Class SCBD CBD 250 Under construction 2016
InterContinental Jakarta Pondok 5-star Luxury Class Pondok Indah South Jakarta 470 Under construction 2017
Indah Hotel & Residences
The Langham District 8@Lot 28 5-star Luxury Class SCBD CBD 200 Under construction 2017
SCBD
JW Marriott @St Moritz 5-star Luxury Class Puri Indah West Jakarta 208 Under construction 2017
JW Marriott @Kemang Village 5-star Luxury Class Antasari South Jakarta 275 Deferred 2017
Park Hyatt Hotel 5-star Luxury Class Kebon Sirih Central Jakarta 150 Under construction 2017
W Hotel @Ciputra World Jakarta 5-star Luxury Class Mega Kuningan CBD 126 Deferred 2018
2
Aryaduta - Holland Village 5-star Upscale Class Cempaka Putih Central Jakarta 180 Deferred 2018
Sofitel 5-star Luxury Class Mega Kuningan CBD 212 Deferred 2018
Regent 5-star Luxury Class Mangkuluhur City CBD 160 Under construction 2018
Gatot Subroto
St Regis 5-star Luxury Class Rasuna Said CBD 280 Under construction Q1 2019
Waldorf Astoria 5-star Luxury Class Thamrin CBD 181 Under construction 2019
St Regis 5-star Luxury Class Gatot Subroto CBD 280 Design Stage Q1 2019
Waldorf Astoria 5-star Luxury Class Thamrin CBD 181 Abandoned 2019
Total star hotel rooms 8,914
Source: Colliers International Indonesia - Research, STR

Budget Hotel Cumulative Supply of Budget Hotel (Economy
Class) in Jakarta
Since 2015, the growth of budget hotel development has been
70
moderate. In Q3 2016, two new budget hotels started operating,
including POP! Hotel Pasar Baru with 112 rooms and Luminor
60
Pecenongan with 199 rooms. Both are located in Central Ja-
karta. With this additional supply, the number of budget hotels
50
in Jakarta is now 5,500 rooms. By the end of 2016, the Jakarta
hotel market will see 837 additional budget hotel rooms.
40
30
20
10
2011
2015
2013
Q3 2016
Q1 2016
2010
Q2 2016
2017F
2012
2014
2019F
2018F
2016F
Future Budget Hotel Development in Pipeline

PROJECTED
STR CHAIN NO. OF
HOTEL NAME LOCATION REGION PROJECT STATUS COMPLETION
SCALE RATE ROOMS
TIME
Ibis Budget Tanah Abang Economy Jl Tanah Abang II Central Jakarta 144 Under construction Q4 2016
Fame Hotel undefined Grand Cakung Mall East Jakarta 97 Deferred 2016
Cordela Hotel undefined Kramat Raya Central Jakarta 70 Under construction 2016
Amaris Tanah Abang Economy Jl Fachrudin Central Jakarta 79 Deferred 2016
Oak Tree undefined Wahid Hasyim Central Jakarta 120 Under construction 2016
Amaris Pluit Economy Pluit Raya North Jakarta 112 Under construction 2016
Whiz - Cipete undefined Cipete South Jakarta 180 Under construction 2016
NEO Kebayoran Midscale Class Kebayoran Lama South Jakarta 102 Under construction 2016
Amaris Slipi Economy Letjen S Parman West Jakarta 146 Under construction Q2 2017
MaxOne Hayam Wuruk undefined Hayam Wuruk Central Jakarta 120 Under construction 2017
Ibis Budget Jaksa Economy Jl Jaksa Central Jakarta 99 Permitting 2018
POP! Hotel Wahid Hasyim Economy Wahid Hasyim Central Jakarta 150 Design stage Q1 2019
Ibis Budget Jaksa Economy Jl Jaksa Central Jakarta 99 Permit Process 2018
POP! Hotel Wahid Hasyim Economy Wahid Hasyim Central Jakarta 150 Design Stage Q1 2019
Total budget hotel rooms 2,692
Source: Colliers International Indonesia - Research, STR
Tourist Activity The extensive infrastructure projects and other investment

projects, which involved a number of Chinese companies, are
By July 2016, Indonesian Statistic Bureau recorded that reflected in the number of arrivals to this country.
1,220,845 foreign tourists landed in Soekarno-Hatta Interna-
tional Airport YTD, slightly dropping 1.4% compared to the same
period in 2015. The five main contributing countries of foreign
passengers arriving through Soekarno-Hatta International air-
port are Singapore, Malaysia, Japan, China and Saudi Arabia.

Number of Passengers Through Soekarno Hatta, Performance
Ngurah Rai and Juanda Airports
The performance of the Jakarta hotel market has been relatively
4,000,000 stable over the quarter, as reflected in the overall performance
3,500,000
(AOR and ADR), which was down slightly by 1%.
3,000,000 The low performance in June was due to the festive season. In
July, the hotel sector was still in recovery mode. The increment
2,500,000 was seen in August, when business began to stabilise.
2,000,000
1,500,000 Average Occupancy Rate (AOR)

1,000,000
The Jakarta hotel market closed the quarter with a 55.9% AOR,
500,000 which reflected a relatively stagnant performance, less than
1% decrease compared to the previous quarter of 56.7%. By
0 subsector market, hotels in and outside the CBD Jakarta per-
formed with a modest decline QoQ by less than 1%, from 55.3%
2011
2015
2013
2008
2009
2016YTD
2010
2012
2014
to 54.6% and from 57.6% to 56.8%, respectively.
Soekarno - Hatta Ngurah Rai Juanda In the CBD area, the occupancy rate of upscale class, upper
midscale and midscale class hotels declined by 1.6% and 1.7%
Source: Statistics Bureau Indonesia QoQ. There was no significant change in how luxury and upper
upscale class hotels performed; they were relatively stable at
52.77% and 60.05%, respectively.
Top Five Country Origin as Foreign Tourist
Contributor that Landed in Soekarno Hatta
International Airport Monthly Average Occupancy Rate (AOR)
350,000 100%
90%
300,000
80%
250,000 70%
60%
200,000
50%
150,000
40%
100,000 30%
20%
50,000
10%
0 0%
2014 2015 2016YTD Jan Feb Mar Apr May Jun Jul Aug
Singapore Malaysia Japan China Saudi Arabia Jakarta CBD Outside CBD
Source: The Ministry of Tourism Indonesia Source: STR

Average Occupancy Rate (AOR) in Jakarta Average Occupancy Rate (AOR) in Outside the CBD
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2013 2014 2015 Q1 2016 Q2 2016 Q3 2016 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016
Jakarta CBD Outside CBD Upper Upscale Class Upscale Class
Source: STR Source: STR
Average Occupancy Rate (AOR) in CBD

100%
Average Daily Rate (ADR)
90% Similar to the AOR, the overall ADR performance of hotels in
80% Jakarta was relatively flat and stood at USD81.92. By area, the
ADR of CBD climbed 2.4% from USD122.25 to USD125.22,
70%
whilst outside CBD, ADR was stable at USD58.22.
60%
50% Monthly Average Daily Rate (ADR)

40%
USD150.00
30%
20%
USD120.00
10%
0%
2013 2014 2015 Q1 2016 Q2 2016 Q3 2016 USD90.00
Luxury Class Upper Upscale Class

Upscale Class Upper Midscale & Midscale Classes+ USD60.00
Source: STR
USD30.00
USD0.00
Jan Feb Mar Apr May Jun Jul Aug
Jakarta CBD Outside CBD
Source: STR

Average Daily Rate (ADR) in Jakarta Average Daily Rate (ADR) in Outside the CBD
USD150.00 USD90.00
USD75.00
USD120.00
USD60.00
USD90.00
USD45.00
USD60.00
USD30.00
USD30.00
USD15.00
USD0.00 USD0.00
2013 2014 2015 Q1 2016 Q2 2016 Q3 2016 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016
Jakarta CBD Outside CBD Upper Upscale Class Upscale Class
Source: STR Source: STR
Average Daily Rate (ADR) in CBD

USD200.00
USD160.00
USD120.00
USD80.00
USD40.00
USD0.00
2013 2014 2015 Q1 2016 Q2 2016 Q3 2016
Luxury Class Upper Upscale Class

Upscale Class Upper Midscale & Midscale Classes+
Source: STR
For more information: Contributors:

Ferry Salanto Eko Arfianto Nurul Soraya
Senior Asociate Director | Research Manager | Research Senior Research Executive | Research
+62 21 3043 6888
Hern Rizal Gobi
ferry.salanto@colliers.com
Assistant Manager | Research
Copyright 2016 Colliers International.

The information contained herein has been obtained from
sources deemed reliable. While every reasonable effort has
been 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 Property Market Q316

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Jakarta Property Market Q316

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Colliers Quarterly

JAKARTA PROPERTY MARKET REPORT

2 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Ferry Salanto Senior Associate Director | Research

Start-up company in the online-based service will likely be- 5,000,000

2010 2012 2014 2016F 2018F

For Lease For Sale

Harton Tower, a newly operating office building in Kelapa Gad-

tive supply to 2.89 million sq m outside the CBD as of Q3 2016,

4 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

West and South Jakarta continuously became major suppliers 200,000

Outside the CBD Cumulative Supply 50,000

within Arkadia Office Complex, however, brought the number

West Jakarta 200,000

East Jakarta 150,000

sq m Annual Supply Additional Supply YTD

5 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Outside CBD exclude TB Simatupang

6 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

2016 South Quarter Tower 3 40,778 For Lease Under Construction

Demand office building in Sudirman will move to a new office building in

7 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Occupancy has been showing a gloomy trend since 2015 out-

After plummeting substantially in 2014-2015, occupancy rate

Source: Colliers International Indonesia - Research

8 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Source: Colliers International Indonesia - Research

Pre-Committed Absorption of Office Buildings

Source: Colliers International Indonesia - Research

Absorption is good at two small office buildings outside the

Premium Class All Classes

Source: Colliers International Indonesia - Research

9 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Based on building grade, Grade C and premium office build-

Average Asking Rents Based on Building Area

10 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Average service charges outside the CBD were generally 20%

and IDR120,000/sq m/month.

Service Charges in Outside the CBD

Service Charges IDR120,000

IDR30,000 Source: Colliers International Indonesia - Research

Source: Colliers International Indonesia - Research

11 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Pre-Committed Take-Up Rate of Strata-title Office

2016F Range of Asking Prices at New and Future Office

Source: Colliers International Indonesia - Research

The sales volume of projected strata-title office spaces in 2016-

Source: Colliers International Indonesia - Research

12 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

A decreasing trend for the asking rents will also compose a

Although registering smaller sales volume, landlords confident-

13 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Apartment Sector Forecast at a glance

List of Completed Apartment Projects During Q3 2016

Newly Introduced Projects During Q3 2016

15 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

The recent Government Regulation Number 34, 2016 seeks to South

which officially became effective in September. Developers

16 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

Sudirman Suites Jl. Sudirman CBD Pikko Group 380 Under-construction

17 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

18 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

19 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International

20 Colliers Quarterly | Q3 2016 | Jakarta | Colliers International