M A R K E T B E AT
GREATER JAKARTA
Industrial Q2 2020
YoY 12-Mo. SUPPLY: No New Supply YTD 2020
Chg Forecast
With the onset of the coronavirus pandemic in March, no new supply was brought to the market in the review quarter, such that cumulative supply
0.2% in the Greater Jakarta area remained unchanged at 14,990 hectares. As the land bank in the Greater Jakarta become more limited, future
development of industrial estates has more potential to expand to eastern corridor of the Greater Jakarta such as Karawang, Purwakarta and
Price Growth
further to Subang, in line with the development of supporting facilities that are also occurring around the area. However, due to COVID-19 spread
prevention, the ongoing expansion in Subang has to hold their construction activities, which might cause the opening delay until the earliest in the
3.3% late 2020.
Demand Growth
DEMAND: Positive Demand Recorded but Lower than the Previous Quarter
62.6% 34 hectares of demand in the Greater Jakarta area was recorded in the quarter, all within estates in the eastern corridor. Whilst the industrial
Sales Rate sector is one which has been least impacted by COVID-19 (as evidenced by the positive take-up during the quarter), this net absorption was still
down by 37.5% over the first three months of the year.
Source: Cushman and Wakefield Indonesia
As businesses & consumers adapted to the ‘new normal’ lifestyle and buying patterns under COVID, new inquiries were seen coming from those
INDONESIA ECONOMIC INDICATORS
industry sectors related consumer goods, e-commerce, logistics and data centers. A number of ongoing transactions however, particularly from
Q2 2020 international investors, were suspended or even cancelled in the near-term due to the local lockdowns and overseas travel restrictions being
applied within most countries within the APAC region and this is likely to remain the same until after the easing or final suspension of the large-
YoY 12-Mo. scale social restrictions (“PSBB”) in Jakarta and for inbound travel.
Chg Forecast
-4.3% PRICING: Estates Endeavour to Hold Land Prices at the Same Level
GDP Growth The average price for industrial land decreased by -3.13% QoQ to Rp. 2,565,000 per square meter from the previous quarter. This decrement
occurred in accordance with Indonesian Rupiah exchange rate that also strengthened against US Dollar in this quarter. During this challenging
time, estates endeavour to hold land price at the same level so then it can be appetizing for investors. Furthermore, in order to engage the
1.96% potential buyer this time, industrialist have to be more active in promoting their estates.
Inflation Rate NET ABSORPTION & LAND PRICE OVERALL SALES RATE
(Ha) 80%
4.25% 300
250
30,00,000
25,00,000
75%
Central Bank Rate
200 20,00,000 70%
Source: Central Bank and Census Bureau 150 15,00,000
65%
100 10,00,000 Historical Average = 65.2%
60%
50 5,00,000
- - 55%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Net Absorption, Ha Price, Rp psm
M A R K E T B E AT
GREATER JAKARTA
Industrial Q2 2020
MARKET STATISTICS
INVENTORY CURRENT QTR OVERALL NET YTD OVERALL NETABSORPTION OVERALL SALES
SUBMARKET OVERALL AVG LAND PRICE (IDR/SQM)*
(HA) ABSORPTION(HA) (HA) RATE (%)
Jakarta 1,089 0.0 0.0 86.5% 5,750,000*
Tangerang 784 0.0 0.0 67.5% 2,600,000
Bekasi 5,056 19.0 52.5 77.2% 2,475,000
Karawang & Purwakarta 4,885 15.0 15.0 49.2% 1,955,000
Serang 3,095 0.0 20.8 49.5% 1,675,000
Bogor 80 0.0 0.0 84.8% 2,000,000
GREATER JAKARTA TOTALS 14,990 34.0 88.3 62.6% 2,565,000
* Secondary Market Price
ARIEF RAHARDJO
Director, Strategic Consulting
+62 21 2550 9500 / [email protected]
REYNALD PRASETYA
Senior Analyst, Strategic Consulting
+62 21 2550 9500 / [email protected]
cushmanwakefield.com
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
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©2020 Cushman & Wakefield. All rights reserved. The information
contained within this report is gathered from multiple sources believed
to be reliable. The information may contain errors or omissions and is
presented without any warranty or representations as to its accuracy.
