Jakarta retail supply remains stable at nearly 5m sqm as of Q3

Two new malls will add 85,000sqm by year-end.

In Jakarta, cumulative retail supply has remained relatively stagnant over the last two years, holding steady at 4.86 million square metres as of Q3 2023, according to a report from Colliers. 

Anticipated completions such as Lippo Mall East Side (within Holland Village) and Agora Lifestyle Centre (within Thamrin Nine), are expected to add about 85,000 square metres of new retail space by the end of 2023. The report said these two malls alone will contribute to a 2.4% growth in cumulative supply in Jakarta compared to 2022. 

Here’s more from Colliers:

In the Greater Jakarta area, the cumulative supply stayed at 2.97 million square metres without any completed projects in Q3 of 2023. However, the anticipated completion of Bintaro Jaya Xchange 2 in Tangerang is expected to take place by the conclusion of 2023. The completion of this mall will further bolster TOD development efforts by the construction of a tunnel that provides direct access to the nearest train station, thereby enhancing mall accessibility. With all ongoing mall construction projects slated for completion in 2023, the cumulative supply in the Greater Jakarta area is projected to grow by about 4.8% compared to 2022. 

Retail concepts are continually evolving. Currently, developers are exploring diverse retail concepts, moving beyond the traditional models and emphasising various spatial offerings. Retail spaces located amidst office buildings have emerged as a popular choice for developers. Additionally, there is a growing trend of incorporating retail facilities to support Transit Orientated Development (TOD) initiatives. 

Apart from the projects currently under construction, several other retail ventures have been unveiled by developers. Most of these new projects share the common thread of promoting open-air retail concepts. In the wake of the pandemic, this outdoor concept has gained popularity, and if it continues to perform well, we can anticipate a growing number of retail development projects adopting this innovative approach.