






{"id":11023,"date":"2021-02-15T12:11:23","date_gmt":"2021-02-15T05:11:23","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=11023"},"modified":"2021-06-04T16:00:27","modified_gmt":"2021-06-04T09:00:27","slug":"greater-jakarta-retail-property-took-a-hard-hit-in-2020","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/greater-jakarta-retail-property-took-a-hard-hit-in-2020\/","title":{"rendered":"Greater Jakarta retail property took a hard hit in 2020"},"content":{"rendered":"<p><span data-contrast=\"none\">Supply in the housing market continued to increase, while tenants in shopping\u00a0<\/span><span data-contrast=\"none\">centres<\/span><span data-contrast=\"none\">\u00a0remain\u00a0<\/span><span data-contrast=\"none\">hesitant<\/span><\/p>\n<figure id=\"attachment_11035\" aria-describedby=\"caption-attachment-11035\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-full wp-image-11035\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/02\/shutterstock_1889097517.jpg\" alt=\"\" width=\"1000\" height=\"750\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/02\/shutterstock_1889097517.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/02\/shutterstock_1889097517.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/02\/shutterstock_1889097517.jpg 620w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/02\/shutterstock_1889097517.jpg 190w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/02\/shutterstock_1889097517.jpg 1000w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-11035\" class=\"wp-caption-text\"><span data-contrast=\"none\">The retail occupancy rate dropped from 90 percent (2019) to 87 percent in 2020<\/span>. bangoland\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"none\">While Greater Jakarta\u2019s housing market remain<\/span><span data-contrast=\"none\">s<\/span><span data-contrast=\"none\"> resilient during the pandemic, its retail property market took a downturn from repeated changes to the government\u2019s restrictive<\/span><span data-contrast=\"none\"> regulations<\/span><span data-contrast=\"none\">,<\/span><span data-contrast=\"none\"> reported <a href=\"https:\/\/www.thejakartapost.com\/news\/2021\/02\/11\/greater-jakarta-housing-market-resilient-but-retail-property-down-in-2020-jll.html#_=_\" target=\"_blank\" rel=\"noopener noreferrer\">The Jakarta Post<\/a>, citing data from property consultancy JLL. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">JLL outlined at a virtual press briefing that the housing market accounted for 16,000 new houses of supply in 2020<\/span><span data-contrast=\"none\">, a record-high data since 2017.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Residential sales rate was 72 percent, around 13,000 houses sold,<\/span><span data-contrast=\"none\">\u00a0higher than condominiums in Greater Jakarta at 63 percent.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Most of the homes sold in 2020 <\/span><span data-contrast=\"none\">were in Tangerang, Banten province, consisting of two to three bedrooms, priced between IDR600<\/span><span data-contrast=\"none\">\u00a0mill<\/span><span data-contrast=\"none\">ion (USD42,901.32) to IDR1.3 billion<\/span><span data-contrast=\"none\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Yunus Karim, JLL head of research, said that developers shifted their focus onto building residential homes, as well as\u00a0<\/span><span data-contrast=\"none\">collaborating with foreign developers.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Karim mentioned, \u201clanded houses have ben [resilient to] the pandemic because Indonesia has socioeconomic potential that lures both domestic and foreign investors to develop landed houses here.\u201d\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cThis is also because buyers with usage intent, or end-users<\/span><span data-contrast=\"none\">, are more active\u00a0<\/span><span data-contrast=\"none\">than<\/span><span data-contrast=\"none\">\u00a0[buyers] with an intention to invest,\u201d he added.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">On the other hand, JLL said that the public health emergency has led to a 34,000 square\u00a0<\/span><span data-contrast=\"none\">metre<\/span><span data-contrast=\"none\">\u00a0contraction in the demand for retail space last year.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The retail occupancy rate dropped from 90 percent (2019) to 87 percent in 2020.\u00a0<\/span><span data-contrast=\"none\">The retail property market\u2019s expected oversaturated is forecasted to f<\/span><span data-contrast=\"none\">urther decline in the occupancy rate to 86 percent<\/span><span data-contrast=\"none\">, according to the\u00a0<\/span><span data-contrast=\"none\">consultancy<\/span><span data-contrast=\"none\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Despite the pandemic, Jakarta\u2019s retail property experienced 25,400 square <\/span><span data-contrast=\"none\">metres<\/span><span data-contrast=\"none\">\u00a0of new shopping centers in 2020, with the new supply predicted to reach 130,000 square meters this year.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cWe are still seeing new stores opening in shopping\u00a0<\/span><span data-contrast=\"none\">centres<\/span><span data-contrast=\"none\">. We expect the food and beverage, beauty, and fast fashion sectors to remain active this year, while the entertainment industry may still need to wait for the situation to improve before resuming [full] operations,\u201d said Karim. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/horizons-ventures-funds-indonesian-online-investment-platform-ajaib-group\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>More: Horizons Ventures funds Indonesian online investment platform, Ajaib Group<\/strong><\/a><\/p>\n<p><span data-contrast=\"none\">As stated by\u00a0<\/span><span data-contrast=\"none\">Alphonzus<\/span><span data-contrast=\"none\">\u00a0Widjaja, chairperson of the Indonesian Shopping Centers Association (<\/span><span data-contrast=\"none\">Appbi<\/span><span data-contrast=\"none\">), the shopping <\/span><span data-contrast=\"none\">centre<\/span><span data-contrast=\"none\">\u00a0occupancy rate d<\/span><span data-contrast=\"none\">ecreased to around 70 to 80 percent.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">He explained that the drop was due to tenants prematurely terminating their leases during these unprecedented times, including\u00a0<\/span><span data-contrast=\"none\">tenants not applying for extensions post their expired lease periods.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cIn shopping\u00a0<\/span><span data-contrast=\"none\">centres<\/span><span data-contrast=\"none\">, it is normal for tenants to come and go,\u201d said\u00a0<\/span><span data-contrast=\"none\">Alphonzus<\/span><span data-contrast=\"none\">.\u00a0<\/span><span data-contrast=\"none\">\u201cBut there was a difference. In normal times before the pandemic, there were many successors if a tenant did not extend their lease.\u00a0<\/span><span data-contrast=\"none\">During<\/span><span data-contrast=\"none\">\u00a0the pandemic, there were almost none.\u201d\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supply in the housing market continued to increase, while tenants in shopping\u00a0centres\u00a0remain\u00a0hesitant<\/p>\n","protected":false},"author":12,"featured_media":21006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[1098,650,158,1097],"class_list":["post-11023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-downturn","tag-housing-market","tag-jakarta","tag-retail-property","news_country-indonesia","news_author-property-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Greater Jakarta retail property took a hard hit in 2020 | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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