An overview of Jakarta’s office, apartment, retail, and hotel markets, as well as Bali’s hotel market until this October, has shown stagnancy and slight improvements based on Colliers’ Quarterly Property Market Report Q3 2023.
The report indicates that a slow recovery covers Jakarta. In the office market, a significantly different number of interests arose among office buildings in the post-pandemic era.
“Those located in attractive areas are experiencing robust demand, leading to rent growth, while older buildings are encountering a smaller pool of interested tenants,” wrote the report.
Meanwhile, apartments in the capital are facing “a consistent trend with limited signs of improvement” in terms of demands and prices. This has led to developers withholding new projects underway, although existing constructions are on top of their completion lists, therefore further delays are reduced, and trust with potential buyers remains.
On the other side of the coin, Colliers maintains that properties near the recently inaugurated LRT have a better chance of price performance. Especially now with the eased regulations set by the Indonesian government, regarding foreign property ownership as a means of attracting more foreign buyers.
Jakarta’s retailers are continuously demonstrating their newfound confidence by actively expanding and launching captivating new outlets as well as using novel and traditional approaches in this post-pandemic era. Countless exhibitions and events have been held simultaneously every other week, which yield positive results in gaining customer attraction.
The positive trajectory also expands to the hotel markets in Jakarta and Bali. Both areas have been experiencing notable rises due to international visitors and MICE activities organised by governmental bodies and corporations.
In Jakarta, the ASEAN summit has benefitted five-star hotels surrounding the Senayan area. Not to mention, recent concerts, sporting competitions, exhibitions, and more offline events support hotel occupancy rates.
As for Bali, Colliers wrote, “The performance of hotels in Bali is also encouraging, with the supply of accommodation remaining somewhat restricted.”