Jakarta prime retail vacancy rate stable at 4%

There were no new retail developments in the city.

According to a JLL report, no new prime shopping centres have entered the Jakarta retail market recently, and this situation may continue for the remainder of the year. In the absence of new prime retail developments, the vacancy rate has remained relatively consistent at around 4%.

Given the limited supply in prime malls, operators are adapting to high interest by offering temporary spaces within their facilities.

Here’s more from JLL:

The Jakarta prime shopping mall market showed steady demand. This was especially fuelled by the food and beverage (F&B) and fashion sectors, with some international companies gradually expanding or entering this market.

Beauty-related tenants have made a substantial contribution to the market as well.

Rents continue their upward trajectory

Rents experienced a slight uptick in the first quarter, showing an increase of about 0.86% q-o-q. This growth was noticeable in properties categorised as upper-middle grade and above.

There were no reported retail transactions in Jakarta in the quarter. However, the retail sector may still be of interest to some investors, especially those who perform well in the market.

Outlook: Vacancy rates will likely continue to decline with no new supply

As no new prime shopping centres are expected to enter the market in the coming year, the competition for space in existing prime malls is likely to remain intense. This ongoing demand may contribute to a further decline in vacancy rates.

Single-digit rent improvements are expected to be influenced by the decreasing vacancy rates supported by healthy demand and macroeconomic conditions.