Jakarta is increasingly flooding rental apartments, what are the signs?

Jakarta, CNBC Indonesia - The condition of apartments in DKI Jakarta is starting to improve, as can be seen from Knight Frank's Jakarta Property Highlight H2 2023 research where the occupancy rate is around 63.04% or up 1.88% from the previous semester. On an annual basis, the average apartment rental price in the Serviced Apartment segment or rental apartments increases by up to 5%.
This condition makes some developers quite confident in their plans to release new rental apartments in the next five years. This year is the highest release figure, namely around 40%.

"At least 11% of serviced apartment projects have increased rental prices and as many as 1,879 new units will enter the market by 2028. And this year 792 new units will enter the market in 2024," said Knight Frank Indonesia Senior Research Advisor Syarifah Syaukat in a Press Conference, Wednesday ( 21/2/2024).

It is estimated that the average annual occupancy will increase by 2.05%, while the increase in rental prices on a HoH or semester-to-semester basis will increase by 2.9%.

Currently there are 2 new projects completed in the Gatot Subroto and Menteng areas. Occupancy of rental apartments in the CBD area was corrected by around 0.9% due to the addition of new projects entering. However, the Christmas and New Year holidays have a positive impact on increasing occupancy from daily stays or short-term rentals.

"Expatriates and corporates are long term tenants in the apartment rental space in Jakarta. Generally they come from expatriates from Asia, Japan, South Korea, India, China. Several operators are still providing promotions and negotiable prices. Repurposing will color the apartment rental trend in the second semester of 2023," said Syarifah.

https://www.cnbcindonesia.com/news/20240221131835-4-516369/apartemen-sewa-makin-banjiri-jakarta-tanda-tanda-apa