The international commercial real estate agency provides quarterly and biannual trend reports of various local properties such as hotels, apartments, housing for expatriates, and retail compounds.
On 10th January, the international commercial real estate agency Colliers published its reports providing insights into the real estate landscape in Jakarta and Bali throughout the fourth and final quarter of the year 2023 (abbreviated as Q4 2023). Moreover, the agency also provided insights into Surabaya’s real estate landscape as observed throughout the second and final half of the year 2023 (abbreviated as H2 2023). These insights, consequently, are expected to serve as a basis of reference for local residents and expatriates who might be looking for a property and, furthermore, keen to predict the dynamics and trends that might follow in the year 2024.
In terms of the real estate landscape in Jakarta, the apartment dynamics throughout Q4 2023 signalled an ideal “time to buy” environment, as described by Colliers. The apartment sales have remained stable throughout the period and are expected to achieve a level of 89-90 percent between the years 2024 and 2026. The bulk of these sales were predominantly existing projects, with developers actively promoting ready-stock units. Specifically concerning housing for expatriates, metropolitan areas such as Menteng and Kemang remain the most preferred. Throughout H2 2023, the mobility of expatriates in Jakarta has returned to a state of normalcy. However, most local landlords have, observably, modified their leasing terms, typically requiring a minimum lease duration of one year for apartments and two years for rental houses.
The hotel sector in Jakarta, as analysed by Colliers, concluded the year 2023 with good progress, though they also predicted that the sector’s biggest challenges are still yet to come. The hotel sector suffered from a slight dip throughout Q4 2023 due to holiday seasons, hinting at a possible performance downturn during the first quarter of the new year. Meanwhile, the office property sector in Jakarta was expected by Colliers to enjoy a growth in demand — to be more precise, 2 percent growth between the years 2024 and 2025. A similar projection also applies to the retail sector in Jakarta. Retail projects such as Agora (within Thamrin Nine), Lippo Mall East Side (within Holland Village), and a to-be-named shopping mall at Menara Jakarta are expected to be finished sometime in the year 2024, invigorating better performances from the retail sectors in the city.
In terms of the hotel landscape in Bali, Colliers reported a rise of occupancy level by 0.7 percent throughout Q4 2023 which, consequently, amounted to a rise of occupancy level by 26% throughout the full year of 2023. Colliers was optimistic that Bali’s hotels will continue enjoying a positive performance in the new year, particularly hotels in areas such as Ubud and Kuta-Legian. Furthermore, considering how, as observed by Colliers, Bali has remained unaffected by the ongoing Presidential Elections campaigns, there is optimism that the hotel sector on the island will continue to grow, with an increase of both local tourists and international tourists to be expected to occur beginning from the first quarter of the year 2024.
Colliers provided insights into the real estate landscape in Surabaya based on the trends that occurred throughout H2 2023. The apartment sales in Surabaya declined by about 50 percent compared to the first half of the year 2023. However, the recently enforced Value Added Tax (VAT) incentive could propel sales for the new year. Unlike the apartment sectors, the hotel sectors in Surabaya continued to thrive until the end of H2 2023. However, as the 2024 calendar approaches the Presidential Elections in February, Ramadan fasting in March, and Hari Raya Eid al-Fitr in April, Colliers expected the hotel sectors to suffer from a brief downturn afterwards.
When it comes to the industrial estate, warehouse occupancy levels in Surabaya saw an improvement throughout H2 2023, driven especially by the growth of e-commerce and third-party logistics (3PL). The standard factory buildings (SFB), specifically, have been gaining popularity in the city, particularly in areas such as Pasuruan and Sidoarjo. Constructions in the retail sector were expected to advance as well, with the cumulative supply projected to grow around 2 percent per annum between the years 2023 and 2025.