Jakarta retail supply to hit 5m sqm this year

Three new malls are currently under construction.

According to a Colliers report, although construction progress is starting to accelerate, Jakarta has yet to see the emergence of any new malls, maintaining the cumulative supply at 4.86 million sq m in Q1 2024. 

“With increasing competition amongst malls to secure tenants and a shift in retail concepts, landlords are continuing to evolve new concepts, as well as determining the most appropriate time to launch new mall projects,” the report said.

Here’s more from Colliers:

In Jakarta, three malls - Agora, Lippo Mall East Side (within Holland Village) and the shopping mall at Menara Jakarta – are currently under construction and likely to be completed in the near future. With the addition of these three future malls, the cumulative supply in Jakarta is expected to reach 5 million sq m in 2024.

In the greater Jakarta area, Living World Kota Wisata (in Bogor) and Aeon Mall Deltamas (in Bekasi), have officially opened, bringing the cumulative supply to 3.18 million sq m in Q1 2024. Pakuwon Mall and Summarecon Mall Bekasi phase 2 are in the construction stage and expected to be ready in 2025 and 2026, respectively. 

Several malls are continuing major renovations to rejuvenate their interiors and façades. Reconfiguring the layout is also crucial, especially for spaces previously occupied by major tenants. Unfortunately, only some shopping malls can develop and transform. 

Apart from financial support, creativity to meet visitor needs will be the main factor in determining whether a shopping centre can survive.