Colliers – a leading diversified professional services and investment management company – has released its Q2 report regarding the office, retail, industrial, and housing sectors in Jakarta as well as the hotel sector in Bali.
Below is a summary of that report.
Jakarta
Offices have gradually started to be occupied with people returning to working from the office. “Sustainability, technology integration, employee health, and wellness are coming to the forefront,” wrote Colliers. With the pandemic improving and the economy resurging, leasing activities for offices are en route to increase.
Expatriate housing
Especially in May, sales have not shown any sign of improvement. According to Colliers, investor-buyers have lost their appetite for units in the primary market. “Developers need a pause in this strenuous market and have not gained confidence yet in the strata-title apartment market, as shown by some delays in the project pipeline,” noted the report. However, a possible fourth wave of COVID-19 could have developers continuously focus on constructing projects still waiting to be completed.
Retail
More and more visitors at retail spots are being seen as pandemic restrictions are loosened. Plans to re-open and expand were being well-considered for more tenants. Yet, occupancy costs are not likely impacted. “In terms of tenancy mix, since department and hyper stores are in an unfavourable situation, the occupier configuration continues to evolve,” wrote the report.
Industrial estates
“The high-tech industry has bolstered its existence and has continued to expand until recently,” Colliers found. The technology sector and data centres in the beginning of 2022 have been on a good path. “These sectors are heading towards maturity with more potential transactions in the pipeline. Another sustainable sector is logistics, mainly stimulated by the growing need for storage and distribution,” continued Colliers. Another sector to note is industrial – entering the recovery stage with a high potential of gaining more traction.
Hotels
Foreign visitors to Jakarta are steadily rising since the quarantine policies were lifted by the government earlier in 2022. “Hotels in Jakarta have signalled a positive outlook, albeit moderately. Two chief hotel performance indicators, the AOR (average occupancy rate) and ADR (average daily rate), have reached a level above the pandemic period (mid-2020 to end of 2021),” Colliers reported. This steady rise predicts moderate growth, especially with the economy and hotel pipeline.
Bali
Hotels
Bali’s reopening to international arrivals has instilled a positive impact on the island’s tourism sector, thus making the short-term outlook enticing. “The reviewed quarter occupancy and hotel rate edged up, catching up with their performance before the COVID-19 outbreak. Backed up with several international and national events, the tourism industry will likely gain traction from now on,” wrote Colliers. A gradual improvement in hotel performance is most likely to occur throughout the year.
Source Colliers Indonesia