Vous êtes sur la page 1sur 29

c o l l i e r s i n t e r n at i o n a l | J A K ARTA

M AR K ET O V ERV IE W | M ARC H | 2010

Property Market Overview


ECONOMIC INDICATORS

INDONESIAN ECONOMIC INDICATOR


2005 2006 2007 2008 2009
Economic Growth (% YoY) 5.70 5.50 6.30 6.10 4.50
Inflation Rate (%) 17.11 6.60 6.59 11.06 2.781
Exchange Rate (Rp/US$) 9,695 8,980 9,124 9,672 10,3251
Interest Rate - Central Bank Rate (%) 12.75 9.75 8.00 9.25 6.502
Notes:
1
January - December 2009 2
December 2009
Source: Statistics Indonesia, Finance Department, Bank Indonesia

www.colliers.co.id Our Knowledge is your Property


The Knowledge Report | March | 2010 | Quarterly Research Report

OFFICE SECTOR

SUPPLY
Of all new buildings projected for the whole Adding around 53,600 sq m, Cyber 2 brought
of 2009, only Bakrie Tower postponed opera- 2009 annual supply to 281,140 sq m, or 53%
tion and will likely enter around March 2010; higher than the total annual supply of 2008.
while Equity Tower, which was previously All in all, the CBD now has a total of around
expected to finish in 2011, made speedy con- 4.05 million sq m of office space.
struction progress and will likely start operat-
ing in May 2010. Therefore, the projection Outside the CBD area, the office market did
of office space in 2010, previously only two not register any new buildings. With no addi-
buildings (Menara Bidakara 2 dan Graha 18) tional stock within the area, cumulative sup-
is now four buildings (including the above- ply in this area hovered at around 1.66 mil-
mentioned), adjusting the total supply from lion sq m. This year we shall see several office
64,000 to 210,800 sq m. buildings placed in the market. Unlike supply
in 2009, where only two buildings, totaling
Thus, during 4Q2009, only Cyber 2 (located around 23,800 sq m, were the only supply,
on Jalan HR Rasuna Said) was officially in op- supply projection for 2010 would be around
eration. Cyber 2 was partly offered as strata- 121,000 sq m from six buildings.
title office for sale and office space for lease.

LIST OF OFFICE BUILDINGS UNDER CONSTRUCTION

bUILDING nAME location EXPECTED COMPLETION


in the CBD area
Bakrie Tower Rasuna Said 2010
Menara Bidakara 2 Gatot Subroto 2010
Graha 18 SCBD 2010
Equity Tower SCBD 2010
The Oval (the Office @Kuningan City) Satrio 2011
Sentral Senayan 3 Asia Afrika 2011
Eighty8 Kasablanka 2011
Menara Allianz Kuningan 2011
Tempo Scan Tower Rasuna Said 2011
Ciputra Office Tower Satrio 2012
Office 8 Senopati 2012
WTC 2 Sudirman 2012
in the outside CBD area
Grand Kebon Sirih Kebon Sirih 2010
Menara MTH MT Haryono 2010
Kem Tower Kemayoran 2010
Central Office Park S. Parman 2011
Gandaria 8 Gandaria 2011
Menara 165 TB Simatupang 2011
MT Haryono Square Cawang 2011
Sovereign Plaza TB Simatupang 2012
Total Space 782,830 sq m

Source: Colliers International Indonesia - Research Department

2 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

DEMAND
With around 281,140 sq m of office space quarter itself, The Plaza has handed over more
entering during the whole of 2009, the YoY than 12,000 sq m to several companies. The
occupancy rate from 2008 to 2009 fell some- resurrection of the office market was further
what, from 90.3% to 87.1% in the CBD area. seen in the acquisition of three major deals in
The determinant factor in declining oc- Sental Senayan II. Other smaller transactions
cupancy level was not just significant supply also emphasized that this sector is beginning
but also the financial crisis early in the year, to move forward.
which impacted the pace of inquiries for office
space. However, as mentioned in our previous With offices for sale, new strata-title office
report, the office market had begun to move buildings have shown a sound performance.
forward from the third quarter of 2009. De- Bakrie Tower will be mostly occupied by
spite the slow growth, signs of recovery have tenants from their own group, while Equity
become clear and will likely continue during Tower has secured a high pre-commitment
2010. Other than a sound economic perfor- level before really in operation.
mance, a smaller supply projection for the
whole of 2010 could be the catalyst to balance From a business line perspective, the quarter’s
supply and demand. active lessees include industries like banking,
insurance and others. Our records show that
Meanwhile, the QoQ occupancy level moved most transactions were predominantly small-
only marginally, from 87.2% to 87.1%. to medium-sized deals.

During the last quarter 2009, Cyber 2 has A similar trend was also seen in the outer
secured big tenants, such as Northstar Pa- CBD area, where occupancy levels shifted
cific, Marquee Executive Offices and Danone, up moderately, by less than 1%, to 87.8%.
totalling almost 25,000 sq m (not including Compared to the occupancy level at the year’s
other smaller tenants). With all the early pre- end, the YoY occupancy rate posed a posi-
commitments, the commitment level of this tive trend, moving from 86% in 2008. In this
building has reached more than 80%. Other quarter, transactions in the non-CBD area
buildings which were projected to complete were mostly due to the expansion of existing
this year have also registered high pre-com- tenants. We also noticed the continuing relo-
mitment levels; in The Plaza, for example, a cation of big tenants, who decided to consoli-
new building coming into operation during date their several office locations. In general,
the “financial crisis” has secured significant we did not notice a significant movement of
transactions of around 5,000 sq m each by tenants during the quarter and this helped
BMW and Sime Darby. During the reviewed maintain the current occupancy level.

CBD OFFICE: CUMULATIVE SUPPLY, DEMAND AND OCCUPANCY RATE

6,000,000 100%

5,000,000 95%

4,000,000 90%

3,000,000 85%

2,000,000 80%

1,000,000 75%

0 70%
2002 2003 2004 2005 2006 2007 2008 2009P 2010P 2011P 2012P

Demand Supply Occupancy Rate

Source: Colliers International Indonesia - Research Department

Colliers International 3
The Knowledge Report | March | 2010 | Quarterly Research Report

ASKING RENTAL RATES


While occupancy trends slightly declined, ask- In the U.S. dollar-denominated buildings, the
ing rental rates by contrast posed a strength- average asking rental rate remained the same
ening YoY trend of 7%, while the QoQ trend as in the previous quarter. All buildings with
recorded a 3% increase from Rp92,988/sq m/ US$ rents continued to maintain prices at the
month previously to Rp95,611/sq m/month. same level from quarter to quarter.
The upward trend was mostly triggered by
buildings which had just finished renovations In the outer CBD area, no significant changes
and wanted to compete with newer build- were made during the reviewed quarter and
ings in the neighbourhood. Most of the cases the average asking rental rates remained rela-
where rental rates were adjusted were due to tively flat, at Rp67,895/sq m/month. Likewise,
management policy. Further, the influx of new average asking rental rates for U.S. dollar-de-
buildings with high occupancy levels has also nominated buildings did not change substan-
contributed to the increase in overall asking tially, staying at US$11.94/sq m/month.
rental rates.

AVERAGE GROSS RENT ANNUALLY

Rp140,000 $23.37
Rp130,000 $22.37
Rp120,000 $21.37
Rp110,000 $20.37
Rp100,000 $19.37
Rp90,000 $18.37
Rp80,000
$17.37
Rp70,000
$16.37
Rp60,000
Rp50,000 $15.37
Rp40,000 $14.37
Rp30,000 $13.37
Rp20,000 $12.37
Rp10,000 $11.37
Rp0 $10.37
2004 2005 2006 2007 2008 2009

Rupiah US$

Source: Colliers International Indonesia - Research Department

SERVICE CHARGES
Average service charge for building in maintenance tariff and maintained at around
the CBD has increased only slightly, from US$5.98/sq m/month.
Rp49,523 to Rp50,057/sq m/month. For
some landlords who applied service charges The overall service charge tariff in the outer
adjustment in the quarter, the main reason CBD area rose to Rp35,024, up by 2% com-
was largely major refurbishment work, such pared to the previous quarter. Likewise, the
as upgrading public equipment and facili- average service charge cost in this area hov-
ties. On the other hand, buildings with U.S. ered at around US$4.66/sq m/month.
dollar charges registered no change in the

4 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

OUTLOOK
The office sector will move forward, largely We anticipate that the pattern of office oc-
due to expectations of positive economic cupiers will be similar to those in the previous
growth. For some periods we have found that period, when office leasing was dominated by
economic growth has shown very strong cor- small to medium transactions. In 2010 we still
relation with the growth of the office sector, expect more companies to vacate older build-
particularly in the rental and occupancy rates. ings and relocate to newer buildings. This pat-
This has been further emphasized by some tern would help buildings under construction
indications such as continued higher office or even those at the planning stage to secure
space absorption and controlled rental level pre-commitment level before being actually
resulting from space inquiries. Further to that, in operation.
the relatively “in control” supply projection
for 2010 will help regulate the balance be- In the period ahead, it is likely that asking
tween supply and demand. rental rates would continue a positive trend.
This will largely be contributed by relatively
new buildings with decreasing vacancy rates.

Colliers International 5
The Knowledge Report | March | 2010 | Quarterly Research Report

APARTMENT SECTOR

APARTMENT STRATA-TITLE FOR SALE

SUPPLY
Shadowed by the global economic crisis, the year made apartment stock grow modestly
apartment market experienced slowing activi- by 13.4% y-o-y, with around 9,028 new ad-
ties in early 2009. Supply grew by only 1.2% ditional units from a total of 14 projects, as
in the first three months of the year as most compared to the previous year, when around
property players held a ‘wait and see’ view. 9,900 units entered the market from a total
Nevertheless, the relatively stable country’s of 20 projects. One rusunami project of Me-
economic indicators warmed up the develop- nara Cawang, providing 3,000 units and a
ers’ machine to continue developing their large-scale project of Thamrin Residence with
property in the remaining quarter of 2009. 1,100 units, contributed the most to 2009’s
Tougher and tighter condition during the annual supply.

LIST OF PROJECTS ENTERING THE MARKET IN 2009

Development location region


Kuningan Place (Infinia and Ultima Tower) Jalan Kuningan Madya 2010
Permata Hijau Residence Jalan Letjen. Supeno 2010
The Boulevard Jalan Fachrudin 2010
Sahid Sudirman Residence Jalan Jend. Sudirman 2010
Grand Surya Pegadungan, Kalideres 2011
Maple Park Golf View (Tower A) Jalan Danau Sunter Barat 2011
Regatta (3 Tower) Jalan Pantai Mutiara 2011
Thamrin Residence (Tower C, D, E) Jalan HR Rasuna Said 2011
Keraton Hyatt Residence Jalan MH Thamrin 2011
Menara Cawang Jalan SMA 14, Cawang 2012
Kebagusan City (Tower A) Jalan Baung 2012
Gardenia Boulevard Warung Buncit 2012
The Lavande Jalan Supomo 2010
Best Western Mangga Dua Jalan Mangga Dua Abdad 2010
Total 9,028 unit

Source: Colliers International Indonesia - Research Department

The East Jakarta area received the largest an- South Jakarta also had significant additional
nual supply in 2009 from the completion of units, with 2,234 and 1,984 units, respec-
the Menara Cawang (rusunami project) with tively.
total of around 3,000 units. The CBD and

6 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

CUMULATIVE APARTMENT SUPPLY

20,000
18,000
16,000
14,000
12,000

Total Unit
10,000
8,000
6,000
4,000
2,000
-
CBD Central Jakarta South Jakarta North Jakarta East Jakarta West Jakarta

Existing 2008 Annual 2009

Source: Colliers International Indonesia - Research Department

In the last quarter of 2009 around 1,418 ad- susun milik or low-cost multi-family residence
ditional units were recorded from three newly subsidized by the government). Based on mar-
completed projects, bringing cumulative ket segmentation, middle-low class apartment
supply to 76,338 units as at the end of 2009. units dominated the market by 46%. These
Around 9% of total supply was classified as classes are found largely in West, North and
rusunami units (the abbreviation of rumah Central Jakarta area.

DISTRIBUTION OF APARTMENT FOR STRATA-TITLE SALE BASED


ON MARKET SEGMENTATION

Luxury
Upper 3.2% Low
7.9% 24.1%
Middle Upper
19.3%

Middle Low
45.5%

Source: Colliers International Indonesia - Research Department

Unlike the previous year, when it dominated from rusunami projects and other apartment
market activities, during 2009 rusunami devel- projects. If all projects meet their schedule,
opment was sluggish. Many ambiguous factors there will be around 27,795 new units project-
related to government support on rusunami- ed to enter the market in 2010, with 55% of
subsidized schemes and its regulation had re- them classified as rusunami units. Further, in
strained the acceleration of development pro- 2011, the market anticipates another 18,400
cess and thus rescheduled completion targets. new units, 25% of them rusunami. Supply pro-
With changes in the projection we anticipate jection in 2012 will ease, with only 959 new
that future supply would include quite a few units and with no rusunami projects.

Colliers International 7
The Knowledge Report | March | 2010 | Quarterly Research Report

CUMULATIVE SUPPLY OF APARTMENTS FOR STRATA-TITLE SALE UP TO 2012(P)

140,000

120,000

100,000

80,000
Total Unit
60,000

40,000

20,000

0
2005 2006 2007 2008 2009 2010(p) 2011(p) 2012(p)

Source: Colliers International Indonesia - Research Department

If we remove rusunami units from the future and 35%, respectively, followed by upper-class
supply list, a total of 27,331 units are predicted units, with 20%. Luxury and low-class units
to enter the market up to 2012. Middle-upper will be in the minority, with 4% and 2% of the
and middle-lower classes will be dominating total additional units.
the composition of future units, with 39%

FUTURE APARTMENT FOR STRATA-TITLE SALE PROJECTS


BY MARKET SEGMENTATION

WITH RUSUNAMI UNITS WITHOUT RUSUNAMI UNITS


6,000 5,000
5,000 4,000
4,000
3,000
Total Unit

3,000
Total Unit

2,000
2,000
1,000 1,000

0 0
CBD Central South North East West CBD Central South North East West
Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta

Low Middle-Low Middle-Up Upper Luxury Low Middle-Low Middle-Up Upper Luxury

Source: Colliers International Indonesia - Research Department

DEMAND
Demand for apartment units in Jakarta is still ers. However, given the fact that only selected
dominated by the investor type of buyers, projects are considered to have potential
as this sector continues to offer interesting investment return, the overall market still
returns. A relatively increasing capital gain indicated a downturn in the take-up rate.
becomes a major attraction for investor buy-

8 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

CUMULATIVE SUPPLY AND TAKE-UP RATE OF APARTMENT


FOR STRATA-TITLE SALE
120,000 100%
90%
100,000
80%
70%
80,000

Total Unit

Take Up Rate
60%
60,000 50%
40%
40,000
30%
20%
20,000
10%
0 0%
2005 2006 2007 2008 2009 2010(p)

Cumulative Supply Take-Up Rate

Source: Colliers International Indonesia - Research Department

Our survey revealed that the average take-up The CBD area remained the favorite location
rate as at the end of 2009 had minor incre- in the market for apartments and this has re-
ments, to 71.6%, from the average of 69.9% sulted in a high take-up rate of 78.6%. Sound
in the previous year. This translates into the take-up rate performance was also recorded
market having a total of 21,702 unsold units. in the area of South, North and West Jakarta,
As shown in the chart, take-up rate is predict- while other areas in Jakarta managed to see a
ed to decline to around 62% in 2010 in antici- take-up rate of around 60%.
pation of upcoming completion of more than
25,000 new apartment units in the market.

TAKE-UP RATE OF APARTMENTS FOR STRATA-TITLE SALE

20,000
18,000
16,000
14,000
Number of Unit

12,000
10,000
8,000
6,000
4,000
2,000
0
CBD Central Jakarta South Jakarta North Jakarta East Jakarta West Jakarta

Total Unit Sold Unit

Source: Colliers International Indonesia - Research Department

Low class apartment units continued to be units that are mostly found in the CBD and
the most absorbed segment in the market in South Jakarta area also managed to record a
2009. These kinds of units are easily found in high take-up rate of 76.0%. Other apartment
West, North, Central and East Jakarta, where classes, except for middle-upper class, reported
take-up rate achieved 76.7%. Upper-class healthy take-up rates of above 70.0%.

Colliers International 9
The Knowledge Report | March | 2010 | Quarterly Research Report

take-up rate based on market segmentations

100%
90%
80%
70%
60%

Take Up Rate
50%
40%
30%
20%
10%
0%
Low Middle Low Middle Up Upper Luxury

Market Segmentation

Source: Colliers International Indonesia - Research Department

ASKING PRICE
The apartment asking price experienced a ing middle-upper to luxury class, managed to
slight increment of 4.8% YoY, to an average achieve a 1.4% increment YoY, to an average
of Rp11.6 million/sq m, from Rp11.0 million/ of Rp11.5 million/sq m. Apartments in the
sq m in 2008. non-CBD area also registered an increase of
1.3% YoY, to Rp8.6 million/sq m in 2009,
Adding to its image as a high-end area, South while those in the CBD area were stable at
Jakarta area, which comprised projects target- Rp15.9 million/sq m.

AVERAGE PRICE PER SQUARE METER OF JAKARTA APARTMENTS


FOR STRATA-TITLE SALE
Rp18,000,000

Rp16,000,000

Rp14,000,000

Rp12,000,000

Rp10,000,000
Price/sq m

Rp8,000,000

Rp6,000,000

Rp4,000,000

Rp2,000,000

Rp0
2006 2007 2008 2009

CBD South Jakarta Non CBD Average

Source: Colliers International Indonesia - Research Department

During the year, developers continue to use The range of offering price in the market was
marketing gimmicks as effective tools to sell very wide. Low-class units were offered at an
their projects. Regardless of lowering unit average price of Rp5 million/sq m, while mid-
prices, developers prefer to provide flexible dle-class units were offered at an average price
payment schemes for potential buyers. It is of Rp8.7 million/sq m for middle-low class
now very common for many developers to and Rp12.7 million/sq m for middle-upper
lengthen the instalment period and offer class. Higher prices were offered by upper-class
low interest rates to win in the competitive projects with an average of Rp18.4 million/
market. Further, with such a flexible scheme, sq m and luxury class at an average of Rp23.4
transacted prices could be discounted up to million/sq m.
35% from the published price.

10 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

range price based on market segmentations

Rp30,000,000

Rp25,000,000

Rp20,000,000

Price/ sq m
Rp15,000,000

Rp10,000,000

Rp5,000,000

Rp0
Low Middle Low Middle Up Upper Luxury
Market Segmentation

Source: Colliers International Indonesia - Research Department

APARTMENT FOR LEASE (SERVICED AND NON SERVICED)

SUPPLY
In 2009, apartments for lease in Jakarta grew apartments into a hotel scheme, thus reducing
slowly. With the trend of leasing units from the cumulative supply by 36 units. Also, with-
secondary strata title units, developing a new out additional units in the second half of the
purely leased apartment became a non-favor- year, the market grew by 1.7% YoY, providing
ite option. Concentrating demand on leasing a total of 7,835 leasing units up to the end of
apartments only in certain areas has limited 2009. Only 52% of these were leasing units
new leased apartment projects. with service.

Apartments for lease only saw one new proj- Our survey up to the end of the year noted two
ect in 2009, from the operation of the third new leasing apartments to enter the market in
tower of Golf Pondok Indah Apartment in 2010, and probably another three develop-
the first half of the year. This apartment proj- ments in 2011. These projects would provide
ect offered 166 units for lease (non-service) a total of 381 serviced apartment units. And,
in Pondok Indah, South Jakarta’s elite area. for the first time since 1998, West Jakarta area
Within the same period, the market also wit- would have new units, at around 55% of the
nessed the transformation of Puri Denpasar above future units.

APARTMENT FOR LEASE SUPPLY

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2005 2006 2007 2008 3Q09 2009(p) 2010(p) 2011(p)

Serviced Apartment Non-Serviced Apartment

Source: Colliers International Indonesia - Research Department

Colliers International 11
The Knowledge Report | March | 2010 | Quarterly Research Report

Location-wise, the CBD and South Jakarta namic business activities, apartments for lease
area continue to dominate, providing 45% with service were largely available in the CBD
and 35% of the units, respectively. With dy- area, most classified as middle-upper class.

SUPPLY OF APARTMENTS FOR LEASE BY LOCATION

SERVICED APARTMENT NON SERVICED APARTMENT

East West
West
North North Jakarta Jakarta
Jakarta
Jakarta Jakarta 1% 7% CBD
6%
9% 2% 35%

South
Jakarta
20%
CBD South Central
Central 55% Jakarta Jakarta
Jakarta 50% 5%
10%

Source: Colliers International Indonesia - Research Department

DEMAND
The demand for apartments for lease in 2009 occupancy rates and continued to show grad-
was largely influenced by the global economic ual improvement. In line with the fluctuating
crisis. Tightened accommodation budgets number of expatriates in the country, the
applied by some multinational companies apartments for lease with service also showed
restrained business expansion plans, including fluctuating occupancy levels during the year.
expatriate allocations in the country. Thus, All in all, however, the average occupancy
apartments at lower rates, or those providing rate of apartments for lease (both non-service
flexible leasing terms, were in high demand. and serviced) achieved 69.4%, down from
Benefiting from long-stay occupiers, apart- 71.6% in the previous year.
ments for lease (non-service) posted stable

AVERAGE OCCUPANCY RATE OF JAKARTA APARTMENTS FOR LEASE

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2005 2006 2007 2008 2009

Serviced Apartment Non-Serviced Apartment Average

Source: Colliers International Indonesia - Research Department

At the end of the year, the South Jakarta area rate, of 68.9%, in the reviewed year. With
managed to achieve the highest occupancy limited supply available, there were only
level, with an average of 70.6%, leaving 1,100 vacant units in the CBD area, with
around 3,239 units vacant. The CBD and about 16,000 in the non-CBD area.
Non-CBD areas recorded a similar occupancy

12 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

UNIT OCCUPIED OF APARTMENT FOR LEASE


(SERVICED AND NON-SERVICED APARTMENT)
60,000

50,000

40,000

Total Unit
30,000

20,000

10,000

0
CBD South Jakarta Non CBD

Total Unit Unit Occupied

Source: Colliers International Indonesia - Research Department

ASKING RENTAL RATE


During 2009, the average asking rental rate of noted that the average rental rate stayed at an
apartments for lease was relatively stable. The average of US$13.30/sq m/month. However,
minor QoQ discrepancy was more influenced the average rent per unit registered a 6.4%
by exchange rate volatility in the calculation YoY increment, to an average of US$2,121/
process. In general, the average offering rental unit/month, compared to the previous year’s
rate per square metre in 2009 was approxi- US$1.994/unit/month.
mately the same as the year before. Our survey

AVERAGE OCCUPANCY RATE OF JAKARTA APARTMENTS FOR LEASE

$20.00
$18.00
Rental Rate (US$/sqm/month)

$16.00
$14.00
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

CBD SJ Non CBD Average

Source: Colliers International Indonesia - Research Department

In terms of rental/unit/month, apartments for ments registered an average of US$2,920/


lease (non-service) recorded an average rent unit/month. The lowest rent of this type of
of US$1,830/unit/month. In the market, the apartment was US$1,800/unit/ month, while
range was from US$309/unit/month in the the highest could reach US$7,000/unit/
non-CBD area to US$8,000/unit/month in month.
the CBD area. Meanwhile, serviced apart-

Colliers International 13
The Knowledge Report | March | 2010 | Quarterly Research Report

ASKING RENTAL/UNIT/MONTH

SERVICED APARTMENT NON SERVICED APARTMENT


9,000 9,000
8,000 8,000

Rental (US$/unit/month)

Rental (US$/unit/month)
7,000 7,000
6,000 6,000
5,000 5,000
4,000 4,000
3,000 3,000
2,000 2,000
1,000 1,000
0 0
CBD South Jakarta Non CBD CBD South Jakarta Non CBD

Source: Colliers International Indonesia - Research Department

OUTLOOK
Developers are very much waiting in the hope Lower interest rates would also give hope for
that new foreign ownership regulation will the apartment market to perform better, from
be released to further trigger apartment sales. the perspective of both buyers and developers.
In principle, the new regulation will only However, again the market should anticipate
prolong ownership rights up-front, instead of abundant future supply, which will put pres-
periodic extension. However, such regulation sure on price growth. If this happens, develop-
would be the appetizer for apartment market ers will continue to offer atractive package
to grow further against the threat of upcoming prices, such as longer term payment terms,
supply over the next two years. reduced down payment amounts and more
subsidies given to the mortgate rate.

14 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

EXPATRIATE HOUSING AND APARTMENTS

EXPATRIATE HOUSING

SUPPLY AND RENTAL RATES


The average asking rental for expatriate hous- periods, landlords have continued to ask for
ing was relatively stable in the second half a minimum leasing period of two years, with
of 2009. During this period, the market saw payment in advance.
small new houses being built, scattered in
such areas as Kebayoran Baru, Pondok Indah, In terms of location, expatriate housing con-
Cilandak and Cipete, which increased the tinued to be concentrated in South Jakarta,
maximum asking rental slightly. In 2H2009, particularly in the areas of Pondok Indah, Ke-
houses available on the market were offered at mang, Cilandak and Cipete. These areas pro-
the lowest rate of US$2,700 per month all the vide houses with an average asking rent rang-
way up to the highest at US$4,400 per month. ing from US$2,800 to US$3,700 per month.
Large houses are commonly found in such Higher asking rents of around US$4,000 per
areas as Menteng, Kuningan, Kebayoran Baru month are seen in such areas as Menteng and
and Pondok Indah, and rental rates can reach Kebayoran Baru, which benefit from their vi-
above US$10,000 per month. For several cinity to the CBD.

EXPATRIATE HOUSING RENTAL RATES (1H2009)


ASKING RATES (US$/Unit/month)* average size (sq m)
AREA
low high average building land
Menteng $2,000 $12,000 $4,148 762 960
Kuningan $2,000 $10,000 $3,563 475 758
Kebayoran Baru $2,000 $15,000 $4,413 574 658
Kemang $1,500 $8,000 $2,882 520 858
Pondok Indah $2,000 $12,500 $3,707 539 645
Permata Hijau $2,000 $6,000 $3,413 629 757
Lebak Bulus $1,500 $5,000 $2,700 580 1,158
Pejaten $1,500 $7,000 $3,106 534 1,000
Cilandak $1,500 $7,500 $2,986 496 849
Cipete $1,500 $5,500 $2,984 464 777
* Majority are Unfurnished
Source: Colliers International Indonesia - Residential/Tenant/Investor Representation Services

DEMAND
In 2H2009, the expatriate housing market and US$4,000 per month. The proximity to
benefited from the recovery of the Indonesian complete entertainment and education fa-
economy following the global financial crisis cilities with good infrastructure and security
that started in the same period. Nevertheless, within the area become key factors in location
as frequently occurs, the market at year-end preference.
was challenged with slowing leasing activity.
During the second half of the year, housing
Meanwhile, the active demand in the market requests came from banking, oil and gas com-
continued to be dominated by expatriates panies. In addition, demand for expat quality
and their families looking for housing in the housing also came from the pharmaceutical
areas of Pondok Indah, Cilandak, Cipete and sector.
Kemang, with a budget of between US$3,000

Colliers International 15
The Knowledge Report | March | 2010 | Quarterly Research Report

EXPATRIATES APARTMENTS

RENTAL RATES
Several companies with limited budgets for Individual owners commonly asked for a one
their expatriate staff accommodation caused year minimum lease period, with payment
demand for apartments with reasonable in advance. Shorter leasing periods could be
rentals to rise. This trend among affordable obtained from apartments managed by deve-
accommodation triggered some projects to in- lopers.
crease their asking rental rate, particularly for
three-bedroom apartments. Thus, the asking
rental rate for selected expatriate apartments
recorded a moderate increase in 2H2009.

SELECTED EXPATRIATE APARTMENTS

AVERAGE US$ ASKING RENT/MONTH average


apartment
2BR 3BR 4BR OCCUPANCY
Dharmawangsa, Sailendra NA 3,500 - 5,000 3,500 - 6,500 80.00%
Four Seasons NA
3,500 - 5,000 5,000 - 6,500 88.33%
Plaza Senayan, The Plaza Residence 2,200 - 4,500
The Residence, Golf Pondok
Indah, Bukit Golf, Ascott, Menteng 2,200 - 3,500 2,500 - 4,000 4,600 - 5,000 85.00%
Executive
Aston, Batavia, Pavillion Park,
Permata Hijau, Puri Casablanca, 1,200 - 3,000 1,500 - 3,500 2,500 - 4,000 75.00%
Casablanca
Taman Rasuna, Semanggi, Slipi,
Kintamani, Taman Pasadenia, Puri 500 - 1,500 700 - 2,600 2,500 - 3,500 75.00%
Imperium
All 500 - 4,500 700 - 5,000 2,500 - 6,500 83.60%

Source: Colliers International Indonesia - Research Department

OCCUPANCY
In general, the leasing apartment market saw In the midst of this downward trend in oc-
a decrease in the occupancy rate in the second cupancy rate, selected expatriate apartments
half of the year. The year-end period is usually experienced only a minor decrease, with the
the time when contracts expire/are terminated average occupancy rate at 83.6%, down from
as short-term workers fly back to their home 83.9% in the previous half.
countries. The Jakarta market recorded an
average occupancy rate of 69.4% in 2H2009,
down from 71.3% in the previous half.

DEMAND
Demand for apartments in this half of the Similar to the previous half, The Pakubuwono
year continued to come from individuals or Residence, which provides the most compre-
couples with a need for efficiency and flex- hensive facilities in Jakarta, remained the most
ibility. These tenants mostly had a budget of preferred option for expatriates. High demand
between US$2,000 and US$3,500 per month was also seen for the new tower of Pondok In-
for a three-bedroom apartment. dah Golf in South Jakarta.

16 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

SELECTED APARTMENTS marketed for sale

completion
name location price range/unit year
Kempinski Residence CBD US$300,000 - US$700,000 2008
Kraton Grand Hyatt Residence CBD US$160,000 - US$200,000 2009

The Pakubuwono View South Jakarta US$290,000 - US$420,000 2010

One at Cik Ditiro Central Jakarta US$80,000 - US$250,000 2010

Note: US$1 is around Rp 10,000


Source: Colliers International Indonesia - Research Department

OUTLOOK
With an optimistic projection for the economy residential market to increase as more expatri-
in 2010, the expatriate house and apartment ates move to Indonesia, particularly Jakarta.
market is also expected to rise. Further, the Given this, suppliers should prepare carefully
soon-to-be-effective China Asian Free Trade in anticipation of the accommodation needed
Area (CAFTA) will cause the expatriate to meet this possible new demand.

Colliers International 17
The Knowledge Report | March | 2010 | Quarterly Research Report

RETAIL SECTOR

SUPPLY
Although the country’s economy was af- market in the first and third quarters. Almost
fected by the impact of the global economic all centers, except for Koja Trade Mall, were
crisis during 2009, Jakarta’s retail market still developed by major retail players, e.g. Agung
recorded 8.9% YoY growth, well below the Podomoro Group, Summarecon Group,
previous year’s growth of 16.7%. As listed in Plaza Indonesia Realty, Jaya Real Property and
the table, 2009’s annual supply was mainly Lippo Group.
from North and Central Jakarta, entering the

NEW RETAIL CENTERS IN 2009

RETAIL CENTER nAME LOCATION MARKETING DEVELOPER


SCHEME
Central Park Central Jakarta for Lease Agung Podomoro Group
Emporium Pluit North Jakarta for Lease Agung Podomoro Group
Kelapa Gading Mall Phase V North Jakarta for Lease PT Summarecon Agung
Koja Trade Mall North Jakarta for Strata Title Sale PT Maju Sentosa Cemerlang
Plaza Indonesia Extension Central Jakarta for Lease PT Plaza Indonesia Realty
Pusat Grosir Senen Jaya Central Jakarta for Strata Title Sale PT Jaya Real Property
PX Pavillion St Moritz West Jakarta for Strata Title Sale Lippo Group
Season City West Jakarta for Strata Title Sale Agung Podomoro Group
Total : 309,681 sq m

Source: Colliers International Indonesia - Research Department

The operation of six new retail centers plus By retail grade, the retail centers in Jakarta
two mall extensions increased the cumula- are predominantly Grade B centers, at around
tive retail space by 309,681 sq m, to a total of 48%. Generally, grade B centers were found in
3.77 million sq m, at end-2009. Around 65% all Jakarta areas but most were concentrated in
of this is classified as retail center for lease, Central Jakarta. Premium centers were mostly
with most located in the non-CBD area, par- found in the CBD area, while a few were also
ticularly in the southern and northern areas. found in North, South and West Jakarta.
Central Jakarta, as the center of trading and
business area, has the largest retail space for
strata title sale.

retail center distribution

BY MARKETING SCHEME BY GRADE


800,000 800,000

600,000 600,000
Retail Space (sq m)
Total Space (sq m)

400,000 400,000

200,000 200,000

0 0

CBD Central South North East West North East Central South West
Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta

For Lease For Strata Title Sale Premium Grade A Grade B Grade C

Source: Colliers International Indonesia - Research Department

18 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

Slowing supply trend is projected to occur in an integrated development consisting of office


2010, with only two retail centers, such as tower, apartment and hotel. Over the next
Grand Paragon in Central Jakarta and Gan- two years, supply for retail space is projected
daria Main Street in South Jakarta, prepared to increase by from 4 to 6%, to achieve a total
for operation. The last project will be part of of 4.3 million sq m by the end of 2012.

RETAIL SPACE SUPPLY AND GROWTH

5,000,000 18%

16%
4,000,000 14%
Retail Space (sq m)

12%

Average Growth (%)


3,000,000
10%

8%
2,000,000
6%

1,000,000 4%

2%

0 0%
2007 2008 2009 2010F 2011F 2012F

Existing Supply Annual Supply Average Growth

Source: Colliers International Indonesia - Research Department

A slowing supply trend also occurred in the stock was classified as retail space for lease.
Greater Jakarta area. Our survey recorded Located in populated areas and zoned as in-
only two retail centers - Taman Topi Square dustrial areas, Bekasi and Tangerang provided
in Bogor and Teraskota in Tangerang - operat- the largest retail space in Greater Jakarta area
ing in the first half of 2009, with total space of for both lease and strata title sale, with 33%
34,000 sq m. With no additional space in the and 32%, respectively, of total stock. In the
second half of the year, the Greater Jakarta south, on the other hand, intended mainly
market grew 2.0% YoY. Stock was around 1.8 as a water conservation area, the total retail
million sq m at end-2009. About 59% of total space is relatively small.

GREATER JAKARTA RETAIL SPACE SUPPLY

BY MARKETING SCHEME BY LOCATION


400,000
350,000
For Strata
Title Sale 300,000
Total Space (sq m)

41% 250,000
200,000
150,000
100,000
For Lease
59% 50,000
0
Bekasi Bogor Depok Tangerang
For Lease For Strata Title Sale

Source: Colliers International Indonesia - Research Department

All in all, we still expect supply to shrink see no new supply in 2011. However, cumula-
over the next two years. The market registers tive supply is projected to escalate by around
growth of only 1.1% in 2010, from the com- 260,000 sq m in 2012 if six retail centers meet
pletion of Plaza Dua Raja in Bogor, and will their schedules.

Colliers International 19
The Knowledge Report | March | 2010 | Quarterly Research Report

GREATER JAKARTA RETAIL SUPPLY AND GROWTH

2,500,000 30%

2,000,000
20%

1,500,000
10%
1,000,000

0%
500,000

0 -10%
2007 2008 2009 2010F 2011F 2012F

Annual Supply Existing Supply Growth

Source: Colliers International Indonesia - Research Department

DEMAND
The retail market in Jakarta is still challenged. Besides F&B retailers, in the last quarter of
Consumers are more prudent in spending the year Japanese retailer, Mujirushi Ryohin
their money. A survey by a market research (muji), officially opened in Plaza Indonesia,
consultant showed that people are now more offering a variety of food, fashion and acces-
selective in buying their needs and focus on sories. Sophie Paris expanded its business in
primary merchandise. Nevertheless, people in Plaza Semanggi, following previous outlets at
Jakarta still need a mall atmosphere as an al- Citraland and Tamini Square. Ace Hardware
ternative place in which to relax and socialize also started to open its 1,500-sq m space in
and this has become part of Jakarta’s lifestyle. Grand Indonesia. Pacific Place Mall added its
Accordingly, food and beverage businesses F&B outlets with the opening of K-box res-
continued to be the crowd pullers for a mall/ taurant, Tutti Frutti Yogurt and Raffel’s Sand-
shopping center. During the year, retail market wich. The mall also introduced the fashion
was flooded by the opening of F&B outlets. outlets of Biyan and Lamborghini Boutique, as
well as other tenants like Watch Time, Book
Several international restaurants opened their Story, Kenko Reflexology, Grand Living Inte-
outlets in last quarter of 2009. In West Jakarta, rior and Erha Apothecary.
May Star in Central Park and Dian Xiao Er in
Taman Anggrek Mall were opened to serve The retail occupancy rate showed a decreasing
Chinese food. Kemiri restaurant opened its trend YoY. Our survey revealed that in 2009
1,400-sq m open kitchen space at Pejaten Vil- the average occupancy rate of the Jakarta re-
lage South Jakarta. MOF Japanese sweets and tail market hovered around 82% and achieved
coffee opened at Plaza Indonesia Extension, 82.6% in the last quarter of the year. This per-
and J’Co and Bread Talk at Tamini Square centage is 2% down from 2008 but overall the
were also seen to open in the period. market is still performing well.

20 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

JAKARTA RETAIL CENTER PERFORMANCE

CUMULATIVE SUPPLY AND DEMAND OCCUPANCY RATE


1,000,000 100%

800,000
80%

Retail Space (sq m)


600,000

Occupancy Rate
60%
400,000
40%
200,000

0 20%
CBD Central South North East West
Jakarta Jakarta Jakarta Jakarta Jakarta 0%
cumulative supply cumulative demand 2005 2006 2007 2008 2009

Source: Colliers International Indonesia - Research Department

Premium malls continue to perform best, with stabilized at between 80% and 90%. Retail
a 98.6% average occupancy rate. Surprisingly, centers in Tangerang and Bogor showed high
the middle to low market also recorded a great average occupancy rates of 92% and 91%,
occupancy rate of 93.9%, higher than middle respectively. However, in these two areas some
to upper malls. shopping centers were still partially unoc-
cupied, with vacancy rates of above 50%. In
A decreasing trend was also experienced by Bekasi, with large supply available, the occu-
retail centers in the greater Jakarta area. The pancy rate was recorded lower at 78%, leaving
occupancy rate was recorded at 95% in 2007 more than 130,000 sq m of retail space vacant.
and gradually fell to only 82.6% at end-2009. Meanwhile, occupancy for retail market in
However, volatility remained healthy and Depok area stabilized at 86%.

GREATER JAKARTA RETAIL CENTER PERFORMANCE

CUMULATIVE SUPPLY AND DEMAND OCCUPANCY RATE


700,000 100%
600,000
80%
500,000
Retail Space (Sq m)

Occupancy Rate

400,000 60%
300,000
40%
200,000
100,000 20%
0
Depok Bogor Tangerang Bekasi 0%

cumulative supply cumulative demand 2005 2006 2007 2008 2009

Source: Colliers International Indonesia - Research Department

Transactions in Greater Jakarta area include the Ekalokasari mall in Bogor repositioned
Read Bean and Mega Indo Electronic in itself by reconfiguring their tenants to become
Teraskota Tangerang, NAV Karaoke and TFY a center for IT products.
Yoghurt in Margo City Depok. Meanwhile,

Colliers International 21
The Knowledge Report | March | 2010 | Quarterly Research Report

ASKING RENTAL RATES AND SERVICE CHARGES

ASKING RENTAL RATES


With moderate retail performance within the rates of retail centers in the South, Central
year, the asking rental rate shown a minor and North Jakarta areas indicated an incre-
increment of 0.6% YoY, to an average of Rp ment trend, while those in West and East Ja-
343,355/sq m/month, from Rp341,143/sq m/ karta were relatively stable, as quite a few cen-
month previously. Comprising several upper ters in the area target a middle-class market.
class retail centers, the average asking rental

ASKING RENTAL RATE OF RETAIL CENTER IN JAKARTA

Rp500,000
Rp450,000
Asking rental Rate/sq m/month

Rp400,000
Rp350,000
Rp300,000
Rp250,000
Rp200,000
Rp150,000
Rp100,000
Rp50,000
Rp0
2005 2006 2007 2008 2009
Central Jakarta South Jakarta North Jakarta East Jakarta West Jakarta Average

Source: Colliers International Indonesia - Research Department

Based on class, premium retail centers were fered at an average of Rp683,000/sq m/month.
applying high asking rentals far above other At end-2009, middle- to upper-class centers
classes. With only a few retail centers op- were offered at Rp314,500/sq m/month,
erating this kind of shopping centers, this while middle- to lower- class were offered for
indicated an increasing rental trend. Average Rp204,400/sq m/month.
rental rates for premium retail centers were of-

Rp800,000

Rp700,000

Rp600,000

Rp500,000

Rp400,000

Rp300,000

Rp200,000

Rp100,000

Rp0
2005 2006 2007 2008 2009

Premium Middle Up Middle low

Source: Colliers International Indonesia - Research Department

22 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

There were lower asking rental rates offered for age asking rental rate in Greater Jakarta area
retail centers in the greater Jakarta area. The was Rp246,000/sq m/month. Stabilizing the
average rent indicated an increasing trend rental rate was one of the strategies applied in
from 2005 and experienced minor falls in 2008 the last two years to retain tenants.
and 2009. Our survey recorded that the aver-

Rp300,000

Asking Rental Rate/sq m/month Rp250,000

Rp200,000

Rp150,000

Rp100,000

Rp50,000

Rp-
2005 2006 2007 2008 2009

Source: Colliers International Indonesia - Research Department

SERVICE CHARGES
The average service charge for retail centers Categorized by class, our survey revealed that
in Jakarta was relatively stable within the first premium and middle to low retail centers con-
three quarters and posted a minor increment tinued to apply similar rates to the previous
in the last quarter, due to new shopping cen- year, at Rp93,400/sq m/month and Rp51,750/
ters entering. In Jakarta, the service charge sq m/month, respectively. Middle to upper
registered a modest decrease by 0.13% YoY, to centers posted a 6% increase, to Rp66,385/
Rp62,538/sq m/month, from Rp62,618/sq m/ sq m/month, following the operation of some
month previously. retail centers within the year.

RETAIL CENTER SERVICE CHARGE BY CLASS IN JAKARTA

Rp100,000

Rp90,000

Rp80,000
Service Charge/sq m/month

Rp70,000

Rp60,000

Rp50,000

Rp40,000

Rp30,000

Rp20,000

Rp10,000

Rp0
2005 2006 2007 2008 2009

Premium Middle Up Middle low

Source: Colliers International Indonesia - Research Department

In greater Jakarta the average service charge ous year’s Rp52,651/sq m/month, due to the
recorded a minor increment of 0.8% YoY, to adjusted rate applied by some centers in the
Rp53,071/sq m/month, compared to the previ- second half of the year.

Colliers International 23
The Knowledge Report | March | 2010 | Quarterly Research Report

RETAIL CENTER SERVICE CHARGE IN GREATER JAKARTA

Rp60,000

Rp50,000

Service Charge/sq m/month


Rp40,000

Rp30,000

Rp20,000

Rp10,000

Rp0
2005 2006 2007 2008 2009

Source: Colliers International Indonesia - Research Department

OUTLOOK
In general, the retail market in Jakarta and its vacancy rate, as the level of competition
Greater Jakarta should face tight competition among them is predicted to remain similar in
in the future, particularly for centers applying the next few years, due to limited new projects
a conventional mall concept. As leasing retail in the market.
centers will continue to dominate the market,
attractive tenancy mix will become a key suc- With the city’s large population, Jakarta and
cess factor in this competitive situation. its greater area should attract both local and
international retailers to participate in the
The strata title retail market, in a very tough market. However, regulation on retail busi-
situation for the last few years, should have nesses will remain a major issue for interna-
the time and the opportunity to maintain tional brand/retailers entering the market.

24 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

INDUSTRIAL ESTATE SECTOR

SUPPLY
During the reviewed quarter, neither of the in the Bekasi area. 2009 was seemingly the
existing industrial estates came with expan- year of consolidation, wherein many industrial
sion plans, nor were future industrial estates estates were working hard to focus on selling
openings announces . For some time, and unsold units. Thus, during 2009 the industrial
likely for several periods ahead, the industrial market registered no additional land, which
estate market will not see any new industrial helped take-up rate rise steadily.
land, but expansion plans could possibly come
from operating industrial estates with con- As at the end of the year and up to the first
tinuing sales. quarter this year, supply of industrial land in
the six different regions (Jakarta and greater
To date, we have heard no confirmation of Jakarta areas) did not change, remaining at
the expansion of around 80 hectares land in 8,662 hectares.
Serang, nor the plan from prominent estates

DEMAND
Beyond expectations, the industrial market Delta Silikon ranked second after Modern
performed better, amidst the fear of a weak- Cikande in the total number of land and SFB
ening economy in early 2009. At the begin- sales during the quarter, with around 11.2
ning of the year quite a few of the industrial hectares, followed by Bekasi Fajar (BFIE)
landlords we interviewed had moderate sales with a total of around 10.2 hectares. Modern
target during the year; but in fact, after one Cikande, as the biggest contributor to the
year under review, sales of industrial land were whole sales this quarter, received the biggest
more than expected. Expansion activities from transaction from Mitsuba, Japanese automo-
operating industrialists were dominant during tive component makers, of around 7.3 hect-
the year and only a few new investments were ares. This transaction was for the expansion
seen during the year. However, we noted that of an existing factory, occupying four hectares
the new investments acquiring industrial land of land. The second biggest transaction during
were companies whose owners had long his- the quarter also came from the same industry,
torical experience with the business environ- in KIIC, which registered land transactions of
ment in Indonesia. around five hectares. Other significant trans-
actions occurred during the quarter, including
The number of total transactions during the 4.9 hectares of land acquired by Taiwanese
quarter exceeded transactions during the pre- genuine leather tannery in Modern Cikande;
vious period. We recorded around 52 hectares PT. Kayaba Indonesia (automotive spare parts)
of land being transacted in the quarter. Also, in BFIE of 4 hectares; PT. Komatsu Indonesia
as mentioned earlier, total transactions dur- (heavy equipment) in MM2100 taking around
ing 2009 exceeded our expectations, and total 3 hectares; a local steel-related industry taking
industrial land sales in 2009 were recorded at around 3 hectares in KIEC; PT. Oh Sung E.I.
around 214 hectares, which was slightly up (electronic components) from Korea in BFIE
compared to 2008’s total transactions, and with transactions of around 2.6 hectares; a
this was much better than total transactions in local aluminum manufacturer in Modern Ci-
2006 and 2007. kande, with around 2.5 hectares; 2.4 hectares
from a pharmaceutical company with transac-
tions in Indotaisei and land transactions from
Total sales recorded during the fourth quarter
PT. East Hope Agriculture Indonesia, a feed
were registered by Modern Cikande, with a
mill from China, taking around 2.4 hectares
total of around 14.7 hectares; however, total
in Suryacipta.
sales recorded for the full year 2009 were
registered by BFIE at a total of around 47.2
hectares. For the last four years, this was a his-
torical high so far for total transactions made
by one industrial estate in one year.

Colliers International 25
The Knowledge Report | March | 2010 | Quarterly Research Report

INDUSTRIAL LAND SALES recorded in 4Q09

Bekasi Fajar Industrial Estate


Modern Cikande
Greenland (Kota Delta Mas)
Delta Silicon
KIEC
KIIC
Jababeka Industrial Estate
MM2100 Industrial Town
Suryacipta
Kota Bukit Indah Intotaisei
KBN
Sentul Industrial Estate

0 5 10 15 20 25 30 35 40 45 50
hectare

Source: Colliers International Indonesia - Research Department

ANNUAL INDUSTRIAL LAND SALES

300

250

200
hectare

150

100

50

0
2004 2005 2006 2007 2008 2009

Source: Colliers International Indonesia - Research Department

cumulative supply, demand and take-up rates

10,000 100%
9,000 90%
8,000 80%
7,000 70%
hectares

6,000 60%
5,000 50%
4,000 40%
3,000 30%
2,000 20%
1,000 10%
0 0%
2004 2005 2006 2007 2008 1Q09 2Q09 3Q09 4Q09
Cumulative Supply (ha) Cumulative Demand (ha) Take-up Rate (%)

Source: Colliers International Indonesia - Research Department

26 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

INDUSTRIAL LAND PRICES AND MAINTENANCE COST


Overall, prices are relatively stable but we In Serang one prominent industrial estate has
have noted that some industrial estates have come with a new quite significant offering
escalated their asking price. Continued in- price (up by 20%). Their confidence in con-
quiries for one industrial estate have been the tinued transactions, and the comprehensive
main reason for the developer to increase the facilities offered, have been the reasons behind
offering price. Apart from that, the increas- the new price. Further, the price escalation
ing Sale Value of the Tax Object (NJOP) was was set to anticipate future plans to increase
also a factor triggering the price hike. Besides, their own power plant capacity.
in anticipation of responding to the market,
some developers tried to adjust their asking To equalize the market price, one industrial
price to levels close to the market average. estate in Karawang has introduced new land
prices during the reviewed quarter. This
One industrial estate in Bekasi has introduced measure was taken in anticipation of growing
a new price for their land in response to con- demand.
tinued demand and the land shortage. The
new price was quite significant and beyond the
market average.

GREATER JAKARTA INDUSTRIAL LAND PRICES

$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$0
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Bogor Tangerang Karawang Bekasi Serang

Source: Colliers International Indonesia - Research Department

Maintenance adjustment only occurred in lowest compared to the other regions. It was
Serang areas, with two prominent industrial registered that the climb in maintenance tariff
estates introducing new maintenance tariff, ranged only from Rp30 to Rp50/sq m/month.
rising by 13 to 18%. However, the mainte-
nance tariff for Serang area was considered the

Colliers International 27
The Knowledge Report | March | 2010 | Quarterly Research Report

GREATER JAKARTA AVERAGE MAINTENANCE COSTS

$0.09

$0.08

$0.07

$0.06

$0.05

$0.04

$0.03

$0.02

$0.01

$0.00
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Bogor Tangerang Karawang Bekasi Serang

Source: Colliers International Indonesia - Research Department

INDUSTRIAL LAND PRICES AND MAINTENANCE COST

LAND PRICE (/SQ M) MAINTENANCE COST (/SQ M/MONTH)


REGION
Lowest highest average lowest highest average
(Rp) (rp)
Bekasi Rp 500,000 US$ 85.00 Rp 637,225 US$ 0.05 US$ 0.07 Rp 601
Karawang Rp 300,000 US$ 50.00 Rp 391,779 US$ 0.05 US$ 0.06 Rp 496
Bogor US$ 45.00 Rp 750,000 Rp 653,105 US$ 0.065 US$ 0.1 Rp 686
Serang Rp 350,000 Rp 650,000 Rp 551,776 Rp 250 Rp 330 Rp 299
Tangerang US$ 60.00 Rp 1.26 mill Rp 616,322 US$ 0.04 Rp 1,000 Rp 535

Source: Colliers International Indonesia - Research Department

OUTLOOK
Starting 2010 with an historically good per- We expect that the type of industries that
formance in 2009, the industrial market is acquire industrial land in the future will be the
expected to perform much better in 2010. usual industries of auto spare parts, steel, ware-
With global financial crisis still evident at the housing, packaging, food-related industries,
beginning of the year, the industrial market printing, plastic moulding or pharmaceutical.
was anticipated to dilute the hope of perform-
ing better than the previous year. On the
contrary, however, total sales recorded during
2009 even exceeded the totals of the preced-
ing year. With plenty of ammunition for 2010,
such as stabilized political conditions and the
expectation of a growing economy, the indus-
trial market in 2010 has met the requirement
to perform even better.

28 Colliers International
The Knowledge Report | March | 2010 | Quarterly Research Report

293 offices in 61 countries on 6


continents

USA 99 
Canada 19
Latin America 18 
Asia Pacific 62 
EMEA 95 

$2.0 billion in annual revenue

868 million square feet under management

15,573 Professionals

Contact information

Colliers International Indonesia


World Trade Centre 10th floor
Jalan Jenderal Sudirman Kav 29 - 31
Jakarta 12920
Tel : 62 21 521 1400
Fax : 62 21 521 1411

Mike Broomell
Managing Director
Tel : 62 21 521 1400
Fax : 62 21 521 1411
Email : Mike.Broomell@colliers.com

Ferry Salanto
Division Manager, Research Services
Tel : 62 21 521 1400
Fax : 62 21 521 1411
Email : Ferry.Salanto@colliers.com

This report and other research materials may be found


on our website at www.colliers.com. Questions related
to information herein should be directed to the Research
Department at the number indicated above. This document
has been prepared by Colliers International for advertising
and general information only. Colliers International makes
no guarantees, representations or warranties of any kind,
expressed or implied, regarding the information including,
but not limited to, warranties of content, accuracy and
reliability. Any interested party should undertake their own
inquiries as to the accuracy of the information. Colliers
International excludes unequivocally all inferred or implied
terms, conditions and warranties arising out of this document
and excludes all liability for loss and damages arising there
from. Colliers International is a worldwide affiliation of
independently owned and operated companies.

www.colliers.co.id OurKnowledge
Our Knowledge isyour
yourProperty
Property
ColliersisInternational 29