Inflation Rate 6.96% Gross Domestic Product. Jul % 8.36% 4.30% 3.79% 3.35% 3.21%

Transcription

1

2 Inflation Rate 6.96% 3.79% 4.30% 8.38% 8.36% 3.35% 3.21% Gross Domestic Product Jul 16

3 Property market in Indonesia during second quarter continued to languish with more moderate growth compared to the first quarter Supply and demand increased moderately with demand lagging behind supply Downward pressure on average rental. Meanwhile, average sale price increased modestly Limited MICE activities during fasting month had led to a lower occupancy level in Hotel market over reviewed quarter In midst of moderate level of foreign demand, domestic demand mostly concentrated in middle to middle low market segment

4 116, ,857 93,628 77,073 57,392 55,469 66,579 60,891 29,736 19,224 36,700 29, , , , ,386 7,776,362 6,751,345 There was no new additional supply in the second quarter, net absorption have continued in downward pressure 1,000, , , , , , , , , , % 96.3% 82.3% % 88.2% 91.5% 64.6% 81.7% Jkt Btn Bdg Sby Smg Mdn Mks Pku Bpn Supply Demand Occupancy Cumulative supply remained stable with new additional supply only came from newly completed building in Jakarta. Overall, net take up achieved 77,109 sqm during the 2 nd quarter 2016 and it was mostly concluded in grade A offices in Jakarta. Other major cities contributed in small portion to the net take up. Demand was mostly generated by new company establishment, tenant expansion, and relocation. Based on type of business, companies in business line of ecommerce and trading company contributed a majority to demand in office market. Occupancy in most of cities decreased by 0.4% to 1.2% with Bandung witness the highest decrease of 4.3% Occupancy level of offices in Tangerang, Semarang, and Makassar was considerable the highest in the market. Supply and Demand Trend Compared to First Quarter Period Supply Demand Jkt Btn Bdg Sby Smg Mdn Mks Pku Blk 2.01% 1.22% % 1.29% % (4.25%) % 0.04% % (0.43%) % (0.42%) % (1.15%) % 1.59% % (3.85%)

5 233, , , , , , , , , , ,333 80,833 80, , , , , ,000 Rental in most of offices remained stagnant and tended to be more negotiable 250, , , , % 2.22% Rental 2Q16 Rental 1Q16 Rental 0.49% 0.08% 5.81% % % 8.0% 6.0% 4.0% 2.0% 50, % Jkt Btn Bdg Sby Smg Mdn Mks Pku Bpn 3.05% 2.0% 4.0% 6.0% Rental SC Jkt Btn Bdg Sby Smg Mdn Mks Pku Blk 0.44% 0.73% Rental and Service Charge Trend Compared to First Quarter Period 2.22% % (4.15%) (0.27%) 0.49% 0.22% (0.08%) 0.05% (3.05%) (0.29%) 5.81% (2.56%) % (2.99%) % % Overall, rental was relatively flat over the quarter, with only few buildings adjusted their rental to a more reasonable level. Amongst major cities in the country, Makassar enjoyed the highest rental increment by 5.81% following their role in accommodating business activities in eastern part of the country.

6 911, , , , , , , , , , , , , , , , , ,868 56,642 35, , , , , , , , ,120 3,900,668 1,058, , ,313 1,071,396 4,149,076 While market in most of cities remained stagnant, demand in established cities increased slightly 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , % 86.2% 88.7% 95.8% 91.6% 94.5% 94.5% 96.8% 73.2% 88.1% 83.5% 74.0% 62.9% 74.4% SUPPLY DEMAND OCCUPANCY 96.5% 69.0% 91.0% Supply distribution remained stable in the 2 nd quarter 2016, with Jakarta remain the highest contributors of 38.7% of total supply, followed by Surabaya (1) and Bodebek (9.9%). Cumulative supply grew slightly by 0.43% following newly operated retail center in Bodebek area during 2 nd quarter, relatively higher than demand growth of 0.17% in the same period. Limited new additional supply had led to low demand absorption with only 16,675 sqm in the 2 nd quarter. Demand absorption was mostly concluded in newly completed retail centers in Bodebek area. F&B tenants were recorded as major demand generator as some projects provide lifestyle concept within their center. Due to saturated Jakarta market, retail development has started to expand to suburban area, such as Bodebek. Therefore demand has also started to grow in that area. Supply and Demand Trend Compared to First Quarter Period (%) Jkt BoDe Bek Btn Bdg Sby Smg Mdn Mks Bali Blkp Crb Jogja Kdr Plb Pku Smd Solo S D (1.17) (1.15) (1.67)

7 150, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 Rental in most major cities have grown moderate 800,000 Rental 1Q16 Rental 2Q16 Growth Based Rents 6.3% 700, % 5.0% 600, , % 3.8% 400, % 300, , , % 2.4% 0.7% 0.4% 0.1% 0.5% 0.4% 0.5% Jakarta Bodebek Banten Bandung Surabaya Semarang Medan Makassar Bali Balikpapan Cirebon Jogja Kendari Palembang Pekanbaru Samarinda Solo Rental and Service Charge Trend Compared to First Quarter Period (%) 1.3% 1.3% Jkt BoDe Bek Btn Bdg Sby Smg Mdn Mks Bali Blkp Crb Jogja Kdr Plb Pku Smd Solo Rent (0.45) (0.38) (0.54) SC Rental increased slightly by only 0.4% as few retail centers adjusted their rental in the 2 nd quarter In midst of stagnant market, rentals in some cities were recorded a decrease as they applied certain discount to maintain occupancy.

8 Jkt Btn Bdg Sby Smg Mdn Mks Pku Bpn BDB DIY Solo Plb Crb 52,612 44,976 23,848 22,616 37,265 33,014 5,421 4,622 6,418 4,565 2,630 2, ,124 5,148 57,896 46,946 7,688 5,707 1, , , ,115 Limited launched projects in apartment market had led to modest increased in sales rate 180, , , , ,000 80,000 60,000 40,000 20, % Supply Demand Sales Rate 88.8% 88.6% 88.1% 84.1% 85.5% 85.3% 81.1% 74.8% 71.1% 69.0% 74.2% 47.9% Supply have been relatively stagnant in most of major cities following limited launched projects during the second quarter. New additional supply was only identified in Jakarta, Tangerang and Medan, which most of them were targeted to middle low to middle market segment. Majority of new additional supply were located in Jakarta market, represent about 43.6% from total new supply and followed by Medan with 12.5% There was a new launched project in Cirebon and it is considerable as the first highrise residential development in the city. Demand was maintained to remain in modest positive level, determined by the types and prices offered. Net take up in the second quarter reached 5,979 units, which about 59.7% of that was concluded in Jakarta market. Demand profile continued to be dominated by investor. Supply and Demand Trend Compared to First Quarter Period S D Jkt Btn Bdg Sby Smg Mdn Mks Pku Blk BDB DIY Solo Plb Crb 1.2% 2.5% 3.2% 1.5% 0.5% 0.9% (8.8%) (3.5%) 9.3% 3.9% 1.2% 0.5% 0.7% 2.4% (0.4%) 1.3% 1.8%

9 24,693,947 18,121,232 17,903,036 17,293,436 16,928,781 17,601,127 17,599,239 18,974,101 27,357,631 20,874,324 26,736,520 26,308,412 14,121,179 14,065,916 16,426,821 16,414,313 22,076,462 19,412,943 17,704,204 17,678,181 10,757,143 21,066,716 22,076,462 24,590,569 26,859,767 26,925,913 26,740,772 Even though most of apartment keep their price in the same level, overall average price increased slightly as some of marketed project adjusted their price to be more reasonable level Price in most of major cities remained in the same level as previous quarter. Sale price increased by 0.2% to 1.2% in most of major cities, with Bandung and Semarang enjoyed a higher increment up to 2.4% during the second quarter. 28,000, % 2.31% Price 2Q16 Price 1Q16 Growth 2.5% 26,000, % 2.0% 24,000,000 22,000,000 20,000,000 18,000, % 1.22% 0.01% 0.92% 0.71% 0.39% 0.08% % 0.15% % 1.5% 1.0% 0.5% 16,000, % 14,000, % 12,000, % 1.5% 10,000, % 8,000,000 Jkt Btn Bdg Sby Smg Mdn Mks Pku Bpn BDB DIY Solo Plb Crb 2.5% Base Price Trend Compared to First Quarter Period Jkt Btn Bdg Sby Smg Mdn Mks Pku Blk BDB DIY Solo Plb Crb (0.4%) 1.2% 2.2% 0.01% 2.3% (1.8%) 0.9% 0.7% 1.6% 0.4% 0.1% 0.2%

10 4,916 4,661 3,198 2,777 12,827 6,433 9,612 5,379 4,225 2,037 5,956 3,236 5,687 3,528 3,193 1,681 1, ,148 2, ,754 1,745 3,395 1,534 1, ,150 2,380 13,132 9,102 20,627 34,216 Less mice activities during fasting month had led occupancy level decreased in the second quarter 40,000 SUPPLY DEMAND OCCUPANCY 35,000 30,000 25,000 20,000 15,000 10,000 5, % 65.1% 59.6% 50.2% 56.0% 48.2% 54.3% 62.0% 69.3% 52.6% 47.2% 62.8% 63.5% 63.4% 45.2% 57.3% 53.8% Cumulative supply increased by 1.9% in the second quarter, which was contributed by new additional supply in Jabodebek, Semarang, Bali, Palembang and Pekanbaru. Jakarta contributed the market with 29.4% of total supply, followed by Bali (11.3%) and Bandung (11.0%) Based on number of room, new supply is dominated by 4 star hotels with 40.3% of total new supply, followed by 3 star hotels (30.4%) and 5 star hotels (29.3%) Demand absorption decreased for 6.9% in the second quarter due to less MICE activities that were held during fasting month. However, few cities including Jogja and Bogor enjoyed a positive demand in the second quarter as they were considerable as destination for holiday season prior to fasting month period. Supply and Demand Trend Compared to First Quarter Period (%) Jkt BoDe Bek Btn Bdg Sby Smg Mdn Mks Bali Blkp Crb Jogja Kdr Plb Pku Smd Solo S D (4.5) 6.1 (9.0) (16.3) (10.8) (10.9) (13.3) (16.1) (1.5) 0.93 (6.8) 4.7 (13.7) (2.8) (9.1) (6.2) (9.8)

11 1,490, , ,493 1,000, , , , , , , , ,241 1,748, , , , , , , ,930 1,043, , , , , , , , , , , ,314 1,461,391 1,737,182 Due to lower absorption, achievable room rate of hotel decreased by 4.05% in second quarter 2,100,000 Rental 1Q16 Rental 2Q16 Growth Based Rents 1 1,750, % 3.7% 4.5% 5.0% 1,400, % 4.1% 0.6% 1.5% 1,050, % 8.1% 8.3% 3.9% 5.6% 6.6% 6.4% 5.0% 700, % 1 350, % 15.0% 16.0% 2 Room Rates Trend Compared to First Quarter Period (%) Jkt BoDe Bek Btn Bdg Sby Smg Mdn Mks Bali Blkp Crb Jogja Kdr Plb Pku Smd Solo Rates 2.0 (2.4) (4.1) (13.5) (8.9) (8.0) (8.3) (16.0) (3.9) 4.5 (5.6) (1.5) (12.4) (6.6) (6.4) Average room rates decreased by 4.05% during second quarter due to low demand absorption However, room rates of hotel market in tourism cities, such as Jogja and Bali, enjoyed an increase as more visitors come to the cities during holiday season

12 Almost all sectors of property commercial in Indonesia show the better of demand performance 3.00% 2.00% 1.00% % 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 1.02% Demand Growth 0.17% 1.91% Office Retail Apartment Hotel 6.88% Apartment was the most positive growth during the quarter Demand of office building increased slightly positive level Demand office remain in modest positive level Retail sector show stagnant demand The lowest demand growth of hotel sector is considerable as regular cycle as less MICE activities during fasting month 1.00% 0.50% % 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 0.28% Price Growth 0.44% Office Retail Apartment Hotel 2.95% 4.05% Price in office and retail sectors have grown positively moderate The lower price of apartment due to new additional supply dominated by middle to mid low segment The fluctuation of occupancy hotel room impact to hotel room rates

13 More than 400 sqm new additional supply is anticipated to enter the market until the end These additional supply mostly come from buildings in Jakarta. Occupancy level will be stagnant up to the end 2016 following a moderate growth of demand. Rental will continue under pressure. The implementation of tax amnesty will bring to a positive sentiment. Launched project will be generated not only in middle to middle low market, but also middle upper to upper market. Positive sentiment to the market will be translated into transaction and early recovery in period. In addition to middle to middle low market, transaction activities will be also contributed by middle upper to upper market.

14 New additional supply will come from projects in Jabodetabek. Occupancy is projected to increase in line with increasing demand from MICE activities. Room rate is expected to increase MICE will continue as main demand generator for hotel market Approximately 1 million sqm additional new supply are anticipated to enter the market until end of F&B will continue to be major demand generator for retail centers in major cities of Indonesia in Therefore, projected to be more their lifestyle retail development. Occupancy and rental is expected to remain stable in In addition to Jabodetabek area and Surabaya are projected to have a more active market compared to other cities.

15