Jakarta Rental Apartment Update
The total cumulative supply for both serviced and purpose-built rental apartments in the end of 2020 increased slightly by 0.4% from the previous year to 8,978 units with an offset between two identified serviced rental apartments temporarily forced to close down operations during the lockdown and two completed serviced rental apartments (Oakwood Residence – Pantai Indah Kapuk and Intercontinental Residence – Pondok Indah) entering the market. For the serviced rental apartments, 72% of the supply remained in the CBD area with 63% of such units located in South Jakarta.
The pandemic crisis has unfavorably impacted the Jakarta Rental Apartment market due to the inbound travel restriction causing disruptions in business activities and short-term holidays. Serviced and Non-Serviced Apartment operators were struggling with new demand inquiries, experiencing non-renewals of existing lease contracts and postponement as well as cancellation of new lease contracts during the lockdown period last year. Though, demand inquiries from short-stay guests for weekend “staycation” and in-place long-term stay contracts were able to sustain the occupancy level. As a result, the overall occupancy rate was down by 12.2% from the previous period to 60.8% in the second half of 2020. Compared to the same period last year, occupancies for both serviced and non-serviced/ purpose-built rental apartments submarkets fell by 12.3% to 61.7% and 12.1% to 58.1%, respectively.