Office
Because of the unpredictability of economic conditions, which can change at any time, most businesses prefer to remain at their current office location rather than relocate. Businesses are seeking cost-effective ways to use space while also attracting workers back into office from the work-from-home era. Developers and investors are looking for ways to modify their strategies and portfolios in response to these changes and new requirements. The hybrid working system is still being implemented. As a result, more vacant spaces put landlords under more pressure and give tenants more leeway in the negotiation process.
Apartment
The apartment market in Jakarta in Q4 2022 was similar to the previous quarter, with no projects launched and performance remaining stagnant. Despite the efforts of developers to revive the apartment market with discounts and freebies, the sluggish economy, combined with a lack of government stimulus, dampened buyer enthusiasm for apartment units, particularly investor buyers. The only positive catalyst came at the end of 2022 from BI, which extended the loan-to-value ratio (LTV) easing until the end of 2023. Furthermore, the apartment sector faces several challenges in 2023 that could dampen an appetite to spend, including an increase in interest rates, which will inevitably raise mortgage rates, as well political tension risks. As a result, we encourage developers to continue offering appealing payment plans, innovative promotions, and, most importantly, to complete projects on time in order to attract potential buyers.
Retail
As more pandemic restrictions were lifted, foot traffic increased. More stores are opening. With long end-of-year holidays, landlords are expected to maximise the number of visitors to the malls. Nevertheless, the mall owners have yet to find reason to increase occupancy cost and remain relatively stable in 2022.
HotelJakarta’s hotel industry is thriving once again. Business activities have resumed, MICE activities have begun to pick up steam, and offline activities are becoming more prevalent, owing to the resumption of exhibitions, sports competitions and music concerts. Of course, this is a breath of fresh air for Jakarta’s hotel industry.
