Indonesia: New research from Colliers predicts that four upcoming projects will take Jakarta’s serviced apartment inventory to 7,793 by the end of 2025.
There were no new serviced apartments entering the market in Q2 2024, keeping the total supply of serviced apartments in Jakarta steady at 7,074 units. But there was a rebranding of one serviced apartment building in the CBD area, formerly known as Crowne Plaza, now Mangkuluhur Residences by LORIN.
Total supply is projected to reach 7,793 units by the end of 2025.
The occupancy rate for serviced apartments increased slightly in Q2 2024 compared to the previous quarter, with most occupancy driven by short-stay guests. Newly operated serviced apartments are beginning to gain traction. All in all, the average occupancy rate of serviced apartments in Jakarta for Q2 2024 was 62.4 per cent, up by 6.1 percentage points (ppts) Q-O-Q.
During Q2 2024, one serviced apartment building in the CBD area adjusted its rental price due to high demand, leading to an average rental rate adjustment in the CBD to IDR 464,453/sq m/month. Moving forward, Colliers expects a one to two per cent increase in the average rental rate by the end of 2024, driven by the potential incoming supply in H2 2024.
