Jakarta Rental Apartment Update

With two identified serviced rental apartments temporarily forced to close down operations during the lockdown, the total cumulative supply for both serviced and purpose-built rental apartments in the first half of 2020 decreased by 6.7% from the previous period to 8,341 units. Meanwhile, serviced apartments that could ensure greater levels of cleanliness and social distancing guidelines, had indicated that more properties were able to remain open for their longer staying guests during the lockdown. For the serviced rental apartments, 76.0% of the supply remained in the CBD area with 62.9% of such units located in South Jakarta.

The pandemic crisis has unfavorably impacted business activities and short-term holidays, experiencing cancellation of reservations and termination of short-term rentals prior to the lockdown period or during the months of February and March. As a result, the overall occupancy rate was down by 13.2% from the previous period to 59.8% in the first half of 2020. Compared to the previous period, occupancies for both serviced and non-serviced/purpose-built rental apartments submarkets fell by 12.8% to 61.2% and 13.9% to 56.3%, respectively.