Jakarta serviced apartment supply to hit nearly 7,800 units by 2025

There are 7,074 units as of Q1 2024.

During the first quarter of 2024, Parkroyal Serviced Suites Jakarta in the Luminary Tower, Thamrin Nine complex, commenced official operations. 

According to Colliers, offering convenient access to public transportation, this project features 180 units ranging from studios to 2- bedroom accommodation, each meticulously designed to embody modern and contemporary living space. 

Here’s more from Colliers:

With the addition of these Serviced Suites, the cumulative supply of serviced apartments in Jakarta as at Q1 2024 increased to 7,074 units. Anticipating further growth, we expect an increase in supply from four upcoming projects, estimating total supply to reach 7,793 units by 2025.

Occupancy rate and rental rate 

Overall, the combination of new supply and stagnant demand exerted pressure on the market in the first quarter 2024. Traditionally, February and March are quiet months in the leasing market, with enquiries predominantly coming from locals rather than expatriates. 

Apart from the seasonal effect, market sentiment was dampened by the general election held in February. The average occupancy rate of serviced apartments in Jakarta during Q1 2024 was 56.3%, down by 4.1 percentage points QOQ. 

In the first quarter 2024, some serviced apartment projects in the CBD, particularly those with high demand, increased their rental rates by 5 to 10% YOY. However, some projects adjusted their rental rates less than the previous year’s rates, by 3 to 5%, resulting in a moderation of growth rate to 4.1% for 2024. 

Conversely, most serviced apartment projects in non-CBD areas (including South Jakarta) maintained their rental rates to remain competitive with newly operated projects.