M A R K E T B E AT GREATER Landed Residential H1 2021

DEMAND: VAT Incentives Induced Inquiries of Ready Stock Units YoY 12-Mo. Despite the pandemic, landed residential market continued to record healthy transaction rate. The average number of units transacted were Chg Forecast recorded at around 26 units per month per estate, growing by 11% compared to in the same period last year. The number corresponds to the 2.25% average sales value of around Rp 36.8 Billion per month per estate, a rise of 17% YoY. Following the trend of supply, Tangerang remains as the Price Growth submarket with highest average take-up at 39.5 units per month per estate, followed by Bekasi at 23.8 units per month per estate.

Some of the transactions occurred in the ready stock units, in response to the Government’s Value Added Tax (VAT) incentive program which has 94.6% taken place since March 2021. The program offered full VAT waiver for houses priced up to Rp 2 Billion and 50% VAT waiver for units priced Sales Rate H1 2021 between Rp 2 Billion up to Rp 5 Billion, which shall be handed over to buyers at least by late August 2021 (and is planned to be extended). Rise of inquiries for ready stock units which fall within the program’s criteria was observed in most estates. On the other hand, pre-sales of indent houses 5,377 still made significantly high proportion of units sold during the review period, since many estates only have a limited amount of ready stock units, New Launches H1 2021 especially in large developments where most of units were sold during their launching period.

Source: Cushman & Wakefield Research Since end-users were still the main driver of the market which contribute around 74% of buyers, mortgage is the most favorite payment method of housing transactions. During the first half of 2021, many estates have reported a more relax bank mortgage rules and selection of new applicants compared to in the last year. Mortgage rejection rate has decreased, even though close background checking of those working in certain industries ECONOMIC INDICATORS was still in place. Interest rate was also low during H1 2021, which attracted buyers for the lower monthly installment plan. However, despite Q2 2021 Central Bank’s latest Loan To Value (LTV)/Financing To Value (FTV) relaxation which allows 0% Down Payment (DP) for all house mortgage YoY 12-Mo. facilities from March until December 2021, many estates were still adapting a minimum DP of 5-10% for first mortgage facility, to ensure buyers’ Chg Forecast commitment and ability to complete their home installment. Mortgage made 75% of payment method preference, followed by hard cash at 13% -1.0% and cash installment at 12%. GDP Growth During the review semester, demand from Lower-Middle segment units shared the highest proportion, contributing 40.7% of this semester’s demand, followed by Middle segment at 30.5%, as end-users who comprised mostly young family and singles looking for home to be occupied are 1.4% the main demand generators of the market. SUPPLY DEMAND GROWTH TAKE-UP UNIT AND VALUE Inflation Rate 45.0 70.0 3.5% 40.0 60.0 3.0% 3.50% 35.0 50.0 Central Bank Rate 2.5% 30.0 1.9% 2.0% 1.8% 1.8% 25.0 40.0 2.0% 1.9% 1.7% 1.70% 1.88% 1.52% 1.51% 1.33% 1.51% 20.0 Source: Central Bank and Census Bureau 1.9% 1.3% 1.43% 30.0 1.5% 1.20% 1.75% 1.6% 1.5% 1.6% 1.8% 15.0

1.55% (unit) Month Unit/ Up

- 20.0 1.0% 1.40% 1.36% 10.0

1.2% 0.93%

Up Value/ Month (Billion Rp.) Month (Billion Value/ Up Take 1.0% 0.95%0.99%1.01% 10.0 -

0.5% 5.0

9.9

5.3 6.6

30.0 38.5 39.5 20.8 21.9 15.8 24.4 32.6 23.8 0.0 0.0 Take 0.0% Jakarta Tangerang Bogor-Depok Bekasi H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 Unit H1 2020 Unit H2 2020 Unit H1 2021 Demand Supply Rp. H1 2020 Rp. H2 2020 Rp. H1 2021 M A R K E T B E AT GREATER JAKARTA Landed Residential H1 2021

YoY 12-Mo. SUPPLY: Conservative Price Growth as Pandemic Still Looms Chg Forecast The first half of 2021 brought a total of 5,377 units of new supply, growing by 33.8% YoY compared to H1 2020’s figure. No new estate was launched during the semester, while a few new estates are expected to enter the market in the next semester. The Lower-Middle segment 2.25% dominated the supply by 41.8% and followed by Middle segment by 21.9%. During the review period, the amount of new supply coming from Price Growth Upper segment was relatively high at 1068 units, which makes it quite similar to the Middle segment (1179 units). Ever since last semester, some developers have gained confidence in selling out their higher-end units despite the ongoing pandemic, considering Government’s vaccination 94.6% program and projection of economic improvement at the beginning of 2021. Sales Rate H1 2021 As uncertainty still looms due to the pandemic, developers kept making efforts to ensure price affordability on their products. Greater Jakarta’s average land price was recorded at Rp 11,600,758,- during H1 2021, growing by 1.2% from previous semester. Many developers preserved 5,377 conservative land price growth while others held back on creating increments. The overall average sales price only grew around 2.24% YoY, one New Launches H1 2021 factors being related to building price’s inflation.

Source: Cushman & Wakefield Indonesia Research OUTLOOK Announcement of the second lockdown which started in July 2021 has alerted the market. The restriction of activities, which is initially planned for ECONOMIC INDICATORS about 3 weeks and currently being extended, puts developers in wait-and-see approach since marketing activities are bound to be limited and Q2 2021 prospective buyers are projected to be more careful in making investment decisions. Product’s price segments and types to be launched are being YoY 12-Mo. reconsidered to cater to market’s purchasing power during this new phase of pandemic. Chg Forecast -1.0% Aside of that, issue on Government’s VAT incentive program to be extended until the end of 2021 made developers to focus on selling and GDP Growth finishing their under constructing products to be delivered by the end of the year, since stocks of ready-to-move units within the program’s criteria are becoming very limited. The program is projected to continue supporting unit sales in the second half of 2021 as well. Low mortgage interest rate may continue to be an attractive bargaining point for purchasing houses, despite Central Bank’s latest LTV/FTV relaxation which allows for 0% 1.4% DP for all house mortgage facilities is still deemed ineffective in practice. Inflation Rate SUBMARKET SUMMARY DEVELOPED AREA AVG LAND PRICE PLANNED AREA (HA) SUPPLY (UNITS) DEMAND (UNITS) SALES RATE 3.50% SUBMARKET (HA) (IDR PSM) Central Bank Rate Jakarta 1,130 778 25,100 21,768 86.7% 14,970,171 Tangerang 25,372 9,575 196,566 189,311 96.3% 13,885,692 Source: Central Bank and Census Bureau Bogor - Depok 10,070 4,235 86,817 79,466 91.5% 7,169,717 Bekasi 12,098 5,363 91,077 87,509 96.1% 10,377,451 Greater Jakarta 48,670 19,949 399,560 378,054 94.62% 11,600,758

*Cushman & Wakefield’s landed residential market analysis focuses on actively marketed residential estates within the Greater Jakarta area. Those selected residential estates are considered as “major developments” comprising a minimum of 30 hectares. Estates specializing in Healthy Simple Housing (Rumah Sederhana Sehat/ RSH) are excluded from the analysis.

Our market area coverage includes (1) ; (2) ; (3) ; (4) ; (5) ; (6) Bekasi Municipality; (7) ; (8) Tangerang Municipality; (9) South Tangerang Municipality; (10) Tangerang Regency; (11) Depok Municipality; (12) Bogor Municipality; and (13) Bogor Regency. M A R K E T B E AT GREATER JAKARTA Landed Residential H1 2021

NEWLY LAUNCHED PROJECTS H1 2021

ESTATE CLUSTER MAIN TARGET UNITS JAKARTA Asya Maninjau (Phase 3) UP 52 Metland (with Keppel Land) The Wisteria @ Cakung (Phase 2) UM to UP 173 Citra Garden City Cemara Mansion UM 19 TANGERANG Alam Sutera Vya UP 21 Millennium City Dalton (Phase 1) LM 72 BSD City JV Mitsubishi Corporation Kiyomi @ The Zora (Phase 1) UP 67 Aether @ Greenwich Park (Phase 1-2) UP 169 BSD City Myza Flathouse LM 180 Cozmo House @ Myza MI 84 Villa Pasir Putih 1 (Phase 1) UP 83 Villa Pasir Putih 2 (Phase 1) UM to UP 138 Villa Pasir Putih 3 (Phase 1) UP 37 Pantai Indah Kapuk 2 Kuningan Village (Phase 1) UP 136 Pantai Bukit Villa (Phase 2) UP 34 Permata Hijau Residence (Phase 1) UP 110 Georgia (Phase 2) MI to UM 68 Metland Puri Oxalis MI 129 Mozart @ Symphonia (Phase 2 ext) UP 44 Summarecon Serpong Baroni @ Symphonia (Phase 2) MI 175 Flamingo (Phase 2 ext) UM to UP 45 Eldora @ Suvarna Sari (Phase 2) UM to UP 47 Suvarna Sutera Fedora Park MI 156 Bayu Premiere MI 49 Cendana Parc LM to MI 460 Lippo Village Cendana Icon LM 695 M A R K E T B E AT GREATER JAKARTA Landed Residential H1 2021

NEWLY LAUNCHED PROJECTS H1 2021 OVERALL SALES RATE

ESTATE CLUSTER MAIN TARGET UNITS 96.0% TANGERANG 94.0% Paramount Serpong The Jewel of Nara 2 UM to UP 128 92.0% Bintaro Jaya U-Ville (ext) MI 30 Historical Average = 92.6% 90.0% Girona @ Gardenville LM to MI 104 Faraday @ Academia Pavilion MI 36 88.0% Citra Raya

Andora @ Gardenville LM 111 (%) RateSales 86.0% Neo Paloma @ Gardenville LM 101 84.0%

BEKASI 82.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Torena+ MI 67 Year Grand Wisata O8 Perfect Home (Phase 1) MI 60 ARIEF RAHARDJO Morizen (Phase 3 ext) UP 22 Director, Strategic Consulting Summarecon Bekasi +62 21 2550 9500 / [email protected] Magenta Residence @ The Orchard (Phase 2) MI 97 Kota Harapan Indah JV Nishitetsu SALSABILA ARUM Asera Nishi (Phase 2) MI to UM 115 Group Analyst, Strategic Consulting +62 21 2550 9500 /[email protected] Segara City Feia (Phase 2) LM 102 Tera Damai Curtina LO to LM 333 BOGOR-DEPOK cushmanwakefield.com Sweet Hortensia (ext) LO 15

Harvest City Sakura Indica LM 40 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Salvia (ext) LM 40 Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for Citra Sentul Raya Volga LM to MI 178 real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with Citra Indah City Bukit Lotus LO 254 approximately 50,000 employees in over 400 offices and 60 countries. In 2020, the firm had revenue of $7.8 billion CitraLand Cibubur Monterrey LM 301 across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

©2021 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.