Why Jakarta’s serviced apartment sector holds strong long-term potential

The sector has had notable growth in supply and demand since 2019.

According to data from Colliers, the average rental rate for serviced apartments in Jakarta experienced a slight adjustment in the non-CBD area due to a newly operational project offering promotional pricing. 

As a result, the average rental rate in the non-CBD area declined to IDR396,651/sq m/month, while the CBD area remained constant at IDR464,453/sq m/month, unchanged from the previous quarter.

Here’s more from Colliers:

Overall, we believe the serviced apartment sector holds strong long-term potential. Since the Covid-19 pandemic, Jakarta’s serviced apartment market has demonstrated notable performance growth in both supply and demand. The coexistence of long-stay and short-stay serviced apartments highlights the sector’s adaptability to accommodate a broad range of tenant needs. 

In addition, Indonesia’s prospects remain promising for several reasons: the country is expected to attract incremental inward foreign direct investment (FDI), which should drive corporate longstay demand, and there is a substantial potential demand base from the growing middle class.