Jakarta’s and Bali’s real estate sectors have shown diverse trends since the beginning of this year.
The international commercial real estate agency Colliers has recently published a report of the latest developments in Jakarta’s office, apartment, expat housing, retail, and hotel sectors as well as Bali’s evolving hospitality scene. To boot, the report, made available on Colliers’ official website on the 9th of July, 2024, provides information regarding how these markets are adapting to economic shifts and evolving consumer preferences.
In the bustling urban landscape of Jakarta, various sectors of the real estate market are experiencing distinct trends and challenges, reflecting the dynamic nature of Indonesia’s capital city.
Jakarta – Office Sector
The Jakarta office market continues to witness an abundance of available spaces ready for occupancy, fostering an environment of heightened competition among tenants. With a significant increase in space absorption not anticipated in the near future, tenants are leveraging this surplus to secure favourable leasing agreements.
Jakarta – Apartment Sector
Recent data indicates a notable proportion of apartment sales originating from existing projects this quarter. Analysts attribute this trend to the impending conclusion of the 100% VAT exemption and the Indonesian preference for seizing last-minute opportunities. Consequently, apartment sales for this quarter have shown a modest improvement compared to the previous period.
Jakarta – Expat Housing Sector
The expatriate housing market in Jakarta has demonstrated consistent growth, marking an upward trajectory compared to previous semesters. Notably, there has been a noticeable influx of expatriates from various Asian countries, particularly from nations such as India, Korea, China, and a resurgence from Japan. These expatriates typically hold senior positions across diverse sectors such as mining, banking, pharmaceuticals, consulting, and logistics.
Jakarta – Retail Sector
In Jakarta’s retail sector, positive developments are becoming increasingly evident with a steady rise in foot traffic. Mall owners are actively optimising their facilities and operations to capitalise on this trend. However, maintaining competitiveness requires meticulous management of tenant mix and the transformation of malls into multifaceted lifestyle destinations. Dining and entertainment options continue to be pivotal in attracting visitors, necessitating continuous adaptation to evolving consumer preferences.
Jakarta – Hotel Sector
The second quarter of 2024 posed challenges for Jakarta’s hotel industry, particularly following the Eid al-Fitr celebrations. Traditionally reliant on business clientele, hotels experienced a temporary decline in performance lasting up to two weeks post-holiday period.
Bali – Hotel Sector
Meanwhile, in Bali, the hospitality sector is experiencing a contrasting trend with a consistent increase in tourist visits, notably during the Eid al-Fitr holidays. The island’s hotels have benefited from significant conference activities post-Eid, bolstering their performance. Looking ahead, Bali anticipates a bustling second half of 2024, fuelled by upcoming school holidays in July, winter breaks in Australia, and festive season tourism from Europe.
In summary, Jakarta and Bali’s real estate sectors are navigating through a mix of challenges and opportunities, reflecting the diverse dynamics of Indonesia’s property markets amidst evolving economic conditions and consumer behaviours.