Supply and Rental Rates

Transcription

1 2Q 2013 i the knowledge research & forecast report EXPATRIATE HOUSING SECTOR Due to the scarcity of expatriate-standard housing and the increasing demand for such housing, the asking rental rate for expatriate houses increased in the range of 20 to 30% (USD3,500 to USD5,500/unit/month)compared to the previous year. Continued inquiries was largely driven by overseas corporations including international banks, IT, energy and oil companies. Supply and Rental Rates Continued inquiries for expatriate-standard housing for the last two years was largely driven by overseas corporations including international banks, IT, energy and oil companies. Today, with an increasing number of expatriates, landlords are overwhelmed in providing expatriate-standard housing, particularly in most the demanded areas like Kebayoran Baru, Pondok Indah, Kemang and Cipete, all of which are in the South Jakarta area. Land availability in these areas remains the main issue. During the first semester of the year, there is only one compound development in the Lebak Bulus area. Thus far, the South Jakarta area was still irreplaceable as the location for expatriate homes, due to the proximity of expat-related facilities such as international schools, entertainment centres, shopping spots, golf courses and other points of interest. In South Jakarta, the most frequently requested location is Pondok Indah, as it provides proximity to both workplaces and international schools. In response to the increasing demand, a number of old houses are being renovated to meet the criteria as expat houses. In some cases, a landowner will demolish an old house and build a modern one with better design and better building materials to catch up with the increasing competition as well to raise the rental rates. The asking rental rate for expatriate housing increased in the range of 20 to 30% compared to the previous year. On the corporate side, this will be a tough issue, since accommodation budgets remain the same as the previous year. This sometimes drives occupiers (expatriates) to spend their own money to get the house they want. Not only in the rental tariff, negotiations with landowners are becoming more difficult since they demand longer leasing periods, i.e. two to three years with payment in advance.

2 expatriate housing rental rates locations size (sq m) rental rates (in us$/unit/month) Kuningan 4-5 Bedrooms House ,500-11,500 Kebayoran Baru 4-5 Bedrooms House 600-1,500 3,000-15,000 2 Bedrooms Townhouse/complex ,500-3, Bedrooms Townhouse/complex ,000-6,700 Menteng 4-5 Bedrooms House 500-1,200 3,000-9,000 Pondok Indah 4-5 Bedrooms House 550-1,000 3,500-15, Bedrooms Townhouse/Complex ,000-4,500 Permata Hijau, Simpruk 4-5 Bedrooms House 400-1,500 2,500-12, Bedrooms Townhouse/complex ,500-5,000 Kemang 4 Bedrooms Townhouse/complex ,000-4,500 3 Bedrooms House ,500-5, Bedrooms House ,000-5, Bedrooms House 550-1,000 3,500-7,000 Cipete 3 Bedrooms Townhouse/complex ,000-3,500 4 Bedrooms Townhouse/complex ,750-6,000 3 Bedrooms House ,500-3, Bedrooms House ,500-7,000 expatriate housing rental rates locations size (sq m) rental rates (in us$/unit/month) Pejaten 3 Bedrooms Townhouse/complex ,500-7,000 4 Bedrooms House ,000-7,000 Cilandak 3 Bedrooms Townhouse/complex ,000-3,500 4 Bedrooms Townhouse/complex ,250-6, Bedrooms House ,500-5, Bedrooms House ,500-7,000 Demand As the expatriate residential market caters more to expatriates from western countries, South Jakarta remains the favourite location. Requests for other areas is generally for a specific reason, for example, a leading aircraft company requires a residential location for their expat staff in an area close to the airport to alleviate traffic issues. During the semester, several industries were quite actively looking for expat houses for their foreign workers. This includes industries like banking, IT, aircraft and automotive. Other than Colliers International - Residential Tenant Representation Services those, mining, oil and gas, and business services continued to be the main demand generator for expat housing. The main issue with the expat housing market is the lack of good housing that meets expatriate requirements located within the abovementioned areas. It is indicated that the number of expatriates working in is increasing, evidenced by many international schools which reportedly have refused new students owing to limited classroom space. Colliers International p. 2

3 Apartments Supply and Rental Rates The expatriate apartment market will have more options with the completion of Residence 8, Senopati Suites and Gandaria Heights. These apartments are located in the Jalan Senopati and Kebayoran Baru areas, and will provide more options for expatriate accommodation. The rental rates escalation for both expatriate housing and serviced apartments this year provides an opportunity for private owners of apartments to offer their units for rent. The most preferred apartment type for expatriates is a two-bedroom with asking rents ranging between US$3,000 and 3,500 per month. rental rates of selected apartment projects in the expatriates location rental rates (us$/unit/month) locations size (sq m) serviced non-serviced Sudirman 2 Bedrooms Apartment ,900-4,525 2,500-4,000 3 Bedrooms Apartment ,550-6,800 3,500-6,000 Kuningan 2 Bedrooms Apartment ,800-4,800 2,500-3,500 3 Bedrooms Apartment ,400-5,050 3,000-4, Bedrooms Apartment ,000-12,000 Kebayoran Baru 2 Bedrooms Apartment ,200-4,300 3 Bedrooms Apartment - 4,500-6, Bedrooms Apartment ,000-10, Bedrooms House 600-1,500-5,000-15, Bedrooms Townhouse/Complex ,500-8,500 Menteng 2 Bedrooms Apartment ,000-3,900 3 Bedrooms Apartment ,350-5, Bedrooms Apartment 500-1,200-4,500-15,000 Pondok Indah Bedrooms Apartment ,100-4,200 2,000-2,750 3 Bedrooms Apartment ,000-5,000 2,800-3, Bedrooms Apartment ,500-6,000 3,500-4, Bedrooms House 450-1,000 4,500-15,000 Permata Hijau, Simpruk 3-4 Bedrooms Apartment ,200-3,250 2,700-4, Bedrooms Apartment 400-1,500 4,000-12, Bedrooms Townhouse/Complex 220 3,000 Pejaten 3 Bedrooms Townhouse/Complex ,500-7,000 4 Bedrooms House ,000-7,000 Kemang 3 Bedrooms Apartment ,000-3,500 4 Bedrooms Townhouse/Complex ,500-5,500 3 Bedrooms + 1 Study House ,000-5, Bedrooms House 550-1,000-3,500-7,000 continued p. 3 Colliers International

4 rental rates of selected apartment projects in the expatriates location rental rates (us$/unit/month) locations size (sq m) serviced non-serviced continuation Cipete 3-4 Bedrooms Apartment ,500-5,000 3 Bedrooms Townhouse/Complex ,000-3,500 4 Bedrooms Townhouse/Complex ,500-6,000 3 Bedrooms House ,000-3, Bedrooms House ,500-7,000 Cilandak 3 Bedrooms Apartment ,450-3,950 4 Bedrooms Townhouse/Complex ,500-6,500 3 Bedrooms + 1 Study House ,000-5, Bedrooms House ,500-7,000 Colliers International - Research p. 4 Colliers International

5 jakarta 2q 2013 EXPATRIATE HOUSING Occupancy Upper-class apartments generally had high occupancy rates of between 75 and 99%. This average occupancy rate of selected apartments preferred by expatriates 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Notes: A: Dharmawangsa, The Capital Residence, SCBD Suites, Pakubuwono Residence, Pakubuwono View B: The Residence, Plaza Senayan, The Plaza Residence, Airlangga, Senayan City figure was somewhat stable compared to what was achieved in the previous semester. A B C D E average Colliers International - Research 482 offices in 62 countries on 6 continents United States: 140 Canada: 40 Latin America: 20 Asia Pacific: 195 EMEA: 85 $2.0 billion in annual revenue billion square feet under management Over 13,500 professionals COLLIERS INTERNATIONAL INDONESIA: tel C: Setiabudi Apartment, Golf Pondok Indah, Somerset Grand Citra, Ascott, Menteng Executive D: Aston Rasuna, Batavia, Somerset Berlian, Puri Casablanca, Casablanca E: Taman Rasuna, Palm Court Apartment, Puri Imperium Demand For landed houses, the South Jakarta area is the most desired location, but for expat apartments, the CBD is another option. The Peak Residence, Capital Residence, SCBD Suites and Sudirman Mansion are the most favoured residences for expatriates in the CBD area, while Pakubuwono Residence, Pakubuwono View and Dharmawangsa Residence are still the most favoured places for expatriates in South Jakarta. Apartment projects that offer tenants varied amenities and larger units will win the American and European market. Asian expatriates may accept smaller units. Michael Broomell Managing Director tel ext 131 Ferry Salanto Associate Director, Research tel ext Ferry.Salanto@colliers.com Copyright 2012 Colliers International The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has bee made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. Accelerating success.