There have been indications of a change in trend from a long-term to a short-term demand.
The supply of rental apartments in Jakarta has been limited after the global financial crisis in 2009. With only one additional serviced rental apartment of Crowne Plaza Jakarta Residences, the total cumulative supply for both serviced and purpose-built rental apartments as of the second half of 2019 increased slightly by 2.5% to 8,939 units. For the serviced rental apartments, 69,0% of the supply remained in the CBD area with 62.9% of such units located in South Jakarta.
The overall occupancy rate has been relatively stable since the first half of 2018 within the range of 72% to 73% across the serviced and propose-built rental apartments submarkets in CBD and prime non-CBD areas as of the second half of 2019.
There were nine new projects in the pipeline, totaling 1,417 units that will enter the market during the period of 2020-2023. All of the proposed projects will be managed by international operators that will create more competition in the short to medium term.