Serviced apartment rents in Jakarta to rise by up to 3% in 2025

The growth will be driven by increases in existing apartment rates.

The average rental rate in Jakarta’s serviced apartment sector in Q4 2024 remained consistent with the previous quarter, with rates in the CBD area at IDR 464,453/sq m/month and IDR 396,651/sq m/month in non-CBD areas.

According to Colliers, looking towards 2025, adjustments in serviced apartment rental rates are to be expected, driven not only by the commencement of new properties but also by increases in existing apartment rates.

Here’s more from Colliers:

Among the 23% of projects that have already adjusted their prices, the CBD area saw a 0.2% increase, while the non-CBD area experienced a 1.3% rise. Overall, we anticipate a 1-3% increase in rental rates for 2025.

Looking ahead, we believe the serviced apartment market will remain active for some time, though challenges persist. Competition among projects is intensifying as newly completed developments continue to increase, particularly over the next two years. Rising costs for utilities, materials, and labor wages are additional concerns. Maintaining high-quality services and facilities will be key to retaining a competitive edge.

Furthermore, the increase in VAT in the next year is expected to erode the revenue of serviced apartments. On the other hand, with the political landscape stabilizing post-election and the completion of renovations in certain properties, an uptick in demand is anticipated. Additionally, marketing campaigns aimed at boosting exposure are expected to drive higher occupancy, positioning these properties for stronger performance in the year ahead.