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ECONOMY

Third quarter GDP

growth was in line with

Bank Indonesias full year

growth projections,

reaching the lower end of the

forecast of 5.1% - 5.5% range.

The stock market composite index increased 7.4% during the

quarter, closing at 5,225 on September 22nd. On the currency

side, the US Dollar experienced a depreciation by 0.23 to Rp.12,003 per US$ 1.00, whilst inflation for the first 9 months

reached 3.42%, with rising food prices being the largest

contributor to this.

CONDOMINIUM MARKET REVIEW

Both sales and pre-sales activities remained strong

during the third quarter of 2014.Current political condition

has not affected the overall Greater Jakarta condominium market.

Middle segment condominiums continued dominating the existing

and proposed supplies, and contributed about 51.1% of the total

sales. During July to September, around 12,066 units of new

condominiums were launched to the market.

Sales rate of existing condominiums in the Greater

Jakarta area reached 97.6% in the third quarter of 2014,

relatively stable from the previous quarter and increased

by 1.0% year-on-year.The occupancy rate was recorded at

63.1%, which went up by 1.6% from that in the preceding quarter.

During the review quarter, the pre-sales rate of proposed

condominium projects was 68.8%, rising by 4.9% from that in the

last quarter and significantly 9.8% year-on-year, leaving about

47,749 units of future stock to be absorbed.

Middle segment projects dominated the pre-sales

activities, and stood at 37.5% of the total transactions.Interms of method of payment, one to three year cash instalment,

bank mortgage, and cash are equally used in middle-class projects

and above, whilst buyers of lower-middle class projects preferred

mortgage payment.

In terms of pre-sales rate by segment, the pre-sales rates

of lower-middle, middle, upper-middle, and upper

segment condominiums were recorded at 62.9%, 74.1%,

70.5%, and 70.6%, respectively. As of the third quarter, 60%

of buyers were investors, indicating the strong investment

sentiment on property.

The sales rate of low-cost condominiums climbed by about 1.1%from 96.6% in the previous quarter and 1.2% over the preceding

years figure, with an occupancy rate of 65.0%. The pre-sales rate

of this condominium segment stood at 75.6%, decreasing 1.7%

quarter-on-quarter.

Total cumulative supply of Jakarta condominiums in

September 2014 stood at 132,472 units, increasing by

4.4% quarter-on-quarter and 13.4% year-on-year,

following the completion of 11 projects during the review

quarter. During the same period, 25 new projects were

launched. These projects brought the total proposed

condominium supply in Greater Jakarta to about 153,273 units.

The newly launched projects during the review quarter weredominated by lower-middle segment condominiums (61.8%),

followed by middle (19.7%), upper-middle (13.9%) and upper

(4.6%).

A total of 301 proposed projects were offered to the market as

of third quarter of 2014. The lower-middle segment

condominiums led the proposed supply in Jakarta with a share of

38.3% or approximately 58,672 units, followed by middle (34.9%),

upper (13.8%), and upper-middle segment (13.0%), respectively.

In terms of location, the majority of existing projects

were concentrated in the secondary area, holding about

72.6% of the total supply or 96,140 units, whilst the CBD

held about 19.5% and prime district of about 7.9%,

respectively.The secondary area also became the location for

almost all of the future projects, holding about 92.0% of the total

supply, whereas prime and CBD areas represented 4.2% and 3.8%

of the supply, respectively.

Most of the existing projects were located in South Jakarta

(29.6% of the total projects), followed by North Jakarta with

21.6%. However, majority of the proposed projects will be in

Tangerang (25.1%), followed by Bekasi (14.8%).

The condominium price trend continued to increase,

along with the growth of land prices.As of September 2014,

the average price of condominiums in the CBD area wasRp39,600,000 per square meter (/sq.m.), a significant increase of

35.6% year-on-year. Meanwhile, the average price in the prime

area was Rp35,400,000/sq.m., a growth of 28.3% compared to the

third quarter of 2013.

OUTLOOKAs demand for condominium future supply continues to be high,

many new condominium projects are still expected to be

launched towards the end of this year. Lower-middle and middle

segment condominium projects with huge number of units are

projected to be the most coveted, in response to the large

potential of these segments.

Q3 2014AKARTA, INDONESIA

CONDOMINIUM SNAPSHOTMARKETBEAT

A Cushman & Wakefield Research Publication

8/10/2019 Jakarta Condo 3q14

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PT Cushman and Wakefield Indonesia

Indonesia Stock Exchange Building

Tw.2, 15/F, Jakarta, Indonesia

(+62) 21 2550 9500

www.cushmanwakefield.com

For more information, contact:

Arief Rahardjo

Senior Associate Director,

Head of Research & Advisory

(+62) 21 2550 9500

arief.rahardjo@ap.cushwake.com

This report has been produced by Cushman & Wakefield China for use by those with an interest in commercial property solely for

information purposes. It is not intended to be a complete description of the markets or developments to which it refers. The report

uses information obtained from public sources which Cushman & Wakefield China believe to be reliable, but we have not verified such

information and cannot guarantee that it is accurate and complete. No warranty or representation, express or implied, is made as to

the accuracy or completeness of any of the information contained herein and Cushman & Wakefield China shall not be liable to any

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ECONOMIC INDICATORS

INDONESIA 2012 2013 2014F

DP Growth 6.3% 5.5 - 5.9% 5.15.5%

Inflation Rate 4.5% 9.8% 3.5% - 5.5%

Central Bank-Rate 5.75% 7.5% 5.5%

Source: Government data (Statistic Bureau, Central Bank of Indonesia, Mi nistry of Finance)

NEWLY COMPLETED PROJECTS

PROJECT SEGMENT APPROX

UNITS

Margonda Residence 4 Lower-Middle 399

Sentra Timur Residence (T. Ruby) Lower-Middle 391

Tifolia Apartment (Pulomas Park Center) Middle 1,260

d'Green Pramuka Residence (T. Bougenville) Lower-Middle 1,035

Scientia Residence (T. C & D) Middle 522

Serpong Greenview (T. Beechwood) Lower-Middle 662

The Aspen Residences (Tower A) Middle 207

Sky Terrace (T. Pecatu & Uluwatu) Middle 342

Sky Terrace (T. Sanur) Middle 162Bogor Valley (T. Raffles) Lower-Middle 627

Sunter Icon (T. Emerald) Middle 378

NEWLY LAUNCHED PROJECTS

PROJECT SEGMENT APPROX

UNITS*

Margonda Residences 6 Middle 504

Bassura City (T. Heliconia) Lower-Middle 975

Bintaro Icon (T. Calluna) Middle 247

Ciputra International (T. Amsterdam) Upper-Middle 412

Kota Ayodhya (T. Indigo) Lower-Middle 828

SpringLake Summarecon Bekasi (T. Davallia) Lower-Middle 778

Grand Kamala Lagoon (T. North Emerald) Lower-Middle 812

Grand Kamala Lagoon (T. South Emerald) Middle 464

Citra Lake Suites (T. Oakwood) Middle 126

Hillcrest House (Millenium Village) Upper-Middle 384

Jewalk Upper-Middle 220

Tazzaland Apartment Middle 700

Thamrin District Residence Lower-Middle 1,302

La Foret Vivante Upper 253

Grand Dhika Mansion Pejaten Upper-Middle 44

Urban Heights (Tower L) Lower-Middle 669

Apartment Menara Cibinong (T. C & D) Lower-Middle 483The Kensington Royal Suites (T. Addington) Upper-Middle 137

The Kensington Royal Suites (T. Belmont) Upper-Middle 117

The Kensington Royal Suites (T. Clifford) Upper-Middle 199

Sentul Garden Apartment Lower-Middle 915

La Vie Upper 300

Core Residence Lower-Middle 700

Selatan 8 (T. Sultan) Middle 336

Horison Blok M Upper-Middle 161*) Total units are approximate numbers and may change over the construction period.

Based on sales price, the Jakarta Condominium market is further classified into 4 (four) price segments (prices are

estimated average hard-cash price term, before tax, on semi gross area):

- Upper : > Rp.30mio per sm - Upper-middle : Rp.20mio per sm to 30mio per sm

- Middle : Rp.12mio per sm to 20mio per sm - Lower-Middle : < Rp.12 million per sm

SUPPLY, DEMAND, SALES RATE

CONDOMINIUM SALES PRICE

LOCAL CURRENCY (RP/SQM)

LOCATION Q313 Q214 Q314 EURO/SQMUS$/

SQFT

12-MONTH

OUTLOOK

CBD Area 29.2Mio 37.6Mio 39.6Mio 2,259 306

Prime Area 27.6Mio 33.3Mio 35.4Mio 2,289 274

DEFINITIONS:

CBD area includes the most prominent business corridors such a s, Sudirman, Kuningan, Thamrin, Gatot Subroto, a nd

Satrio. Prime residential area includes Kebayoran Baru, Senayan, Menteng, Pondok Indah, Permata Hijau, and Kemang,

mostly representing areas that are favoured by high-income families and expatriates.

EXISTING SUPPLY BY DISTRICT

68,5

14

74,1

87

77,6

25

85,7

13

105,7

93

119,4

35

132,4

72

64,5

84

69,9

96

73,5

95

81,5

82

101,5

65

115,6

92

129,3

07

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

2008 2009 2010 2011 2012 2013 3Q2014

SalesR

ate

Un

its

Supply Demand Sales Rate

South, 29.6%

Central,16.6%

West, 17.7%

Nor th, 21.6%

East, 2.7%

Tangerang,7.4%

Bekasi, 0.7% Depok, 3.2%