Property Market Overview IN BODETABEK AREA

Prepared by Strategic Advisory - Coldwell Banker Commercial Kawasan Bisnis Granadha, 12th Floor Jl. Jend. Sudrman Kav. 50, , 12930 COVERAGE OF PROPERTY MARKET AREA

Property sectors that are covered in this analysis including COMMERCIAL PROPERTY and RESIDENTIAL market in Greater Jakarta area…

BOGOR

DEPOK

TANGERANG SELATAN

BEKASI KEY FACTORS THAT DRIVE THE REAL ESTATE MARKET

Demographic Demographic is considerable as one of the most important factors that affects real estate development characteristics as well as its market performance. A shifting in demographic profile and preferences will lead to differentiation in real estate market trend. Government Policies Legislation generally plays a major role in determining property demand and prices, with deductions, subsidies, and tax credits being some of the ways that government can boost demand for real estate.

Facilities and Major Infrastructure Developments Infrastructure being a mature factor that drive higher residential value with organized retail and commercial establishments in its vicinity.

Commercial Property Growth An existence and growth of commercial properties will bring competitive advantages and attractiveness of real estate developments in certain area. Total Population in Bodetabek Area

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000 DEMOGRAPHIC 500,000 1 FACTORS - 2012 2013 2014 2015 2016 Tangerang Selatan 3.7% 3.5% 3.4% B e k a s i D e p o k Tangsel The existence of industrial estates 35% of Bekasi's GDP is contributed by 2.6% 1.5% the industrial sector Tangerang B o g o r Working age population is a major demand generator for real estate market

Main considerations of working age population including : Total Population by Age Group in Bodetabek Area . Transportation costs 800,000 . Accessibility, including to : 700,000 - business district - commercial area 600,000

- industrial area 500,000

. Physical characteristics and residential environment 400,000 . Socio-economic composition 300,000 . Site characteristics and ownership 200,000 . Amenities and service quality

100,000

- 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+

Productive Working Age 45.4% Spatial Plan Regional and City development plan Growth pole and center of activities

Monetary Policy Softening of LTV KPR ratio to 15% Positive sentiment of Tax Amnesty program

GOVERNMENT POLICIES 2 FACTORS Infrastructure Policy Mass Rapid Transit (MRT) Jabodebek Light Rail Transit (LRT) Jabodebek Toll road Kertajati and Karawang airport “Sejuta Rumah” Program Commuter Line development (Jakarta Kota-Stasiun ) Rusunami Integrated transport Masterplan design of Tangerang region Rusunawa Traffic policy in Jabodetabek area Landed house TOLL ROAD MRT JORR II = 110 km Phase 1 : 15,7 Km – 2019 11 toll road Jabodetabek Lebak Bulus – Bundaran HI BRT Phase 2 : 8,1 Km – 2020 Existing : 13 Corridors Bundaran HI – Kampung Bandan New development : 2 corridors Jalur Barat – Timur : 87 Km Corridor 14 : Kalimalang – Blok M Target operation 2024 – 2027 Corridor 15 : Ps. Minggu – Manggarai FACILITIES & INFRASTRUCTURES FACTORS 3 LRT Jabodetabek LRT Jakarta Phase 1 : 18 station – 2019 – Cawang Kb. Lama – Klp. Gading (2018) Bekasi Timur – Cawang Cempaka Putih – Ancol (2018) Cawang – Dukuh Atas KRL Phase 2 72 station Cibubur – Bogor Dukuh Atas – Palmerah – Senayan Palmerah – Grogol Toll Road in Jabodetabek

Tol Jagorawi Tol Jkt - Tol Tangerang-Merak Tol Wiyoto Wiyono 1978 1985 1987 1990

1983 1986 1988 1991 Tol Jkt - Tangerang Tol Soedyatmo Tol dalam Kota JORR W2 Selatan

JORR Selatan -- 1995 JORR W2U & E2 JORR E1 Selatan 2001 1998

2005 1999 JORR E1 Utara Tol Serpong JORR E3 Pondok Aren Tol Cipularang

Bogor Ring Road Tol Cijago I Tol Gate Cibatu 2009-2014 2012 2014

2009 2010 2012 Toll Gate JORR W1 JORR W2 Utara Alam Sutera DEVELOPMENT PHASE ALONG THE TOLL ROAD

Phase 02 Phase 04 Industrial High-rise Estate Estate Phase 01 Phase 03 Housing Low-rise Commercial & Facilities MRT and LRT in Jabodebek

Ancol Timur Bandara Kampung Bandan Soekarno-Hatta Gading Mas Angke Kota PRJ Pesing Tanah Abang BI Galur Pulo Mas Slipi Joglo Dukuh Atas Palmerah Karet Kramat Setia Manggarai Budi Gor Soemantri Cawang Cikunir Bekasi Timur Jatibening Bekasi Barat MRT Jakarta Taman Mini LRT Jakarta (inner city) Kp. Rambutan LRT Jakarta Connecting with Bogor & Bekasi Cibubur Cibinong

Bukit Sentul Lebak Bulus Sentul City Baranangsiang HOW INFRASTRUCTURE INFLUENCE PROPERTY SECTORS

Housing and Industrial Housing and Industrial Estate always the first property which built based on population and accessibility. Both are the first reacted on toll road. Apartment Apartment influenced by accessibility and availability of public transport. Accessibility could increase yearly supply 30- 40% p.a. Hotel Hotel influenced by accessibility and activity, such as MICE and Tourism. Accessibility could increase yearly supply 10 - 30% p.a. Retail Shopping center rely on accessibility to get catchment area. Toll road has influence the retail center supply up to 5-10% p.a. Office Office is the least influenced by the toll road. Office development rely on business activites Bodetabek Development that Influenced by Infrastructure

Bogor No significant additional new toll road or toll gate in the 30 years. Additional toll road only comes from Bogor Ring Road.

Bekasi Additional toll road that connect Jakarta further east (Cipularang, Cipali) makes the Jakarta-Cikampek toll road always increase in traffic. New exit toll gate in Cibatu open a new area in Cikarang.

Tangerang Additional toll road that connect Serpong from south. New toll gate (Alam Sutera) connect Tangerang from other areas. COMMERCIAL PROPERTY 4 FACTORS

“It is seem that commercial property has strong correlation to residential market performance in Greater Jakarta” Bogor Commercial Development BOGOR Jagorawi Bogor Outer Ring Road Bogor Outer Ring Road 2 1978 2009-2014 2018

PROPERTY GROWTH 9,000 180,000

8,000 160,000

7,000 140,000

6,000 120,000

5,000 100,000

4,000 80,000

3,000 60,000

2,000 40,000

1,000 20,000

units m2 - 0 < 1991 1991-1995 1996-2000 2001-2005 2006-2010 2011-2015 2016-2020 Hotel Apartemen Ritel Office

Hotel Rooms hotel Retail Retail space Apartment supply growth growth 7.3% p.a. 13% p.a. in the in the last 10 Bogor Outer Ring Road has 13% last 10 years 7.3% years an impact on apartment sector Depok Commercial Development DEPOK Toll Cijago 2012

PROPERTY GROWTH 60,000 90,000

80,000 50,000 70,000

40,000 60,000

50,000 30,000 40,000

20,000 30,000

20,000 10,000 10,000

- 0 1991-1995 1996-2000 2001-2005 2006-2010 2011-2015 2016-2020 Hotel Apartemen Ritel Office

Hotel Rooms hotel Retail Retail space Apartment supply growth growth 42% p.a. almost 4 times in the last 10 Cijago Toll Road has a 4X p.a. in the last 42% years significant impact on 10 years apartment sector Tangerang Commercial Development Tangerang - Merak TANGERANG 1987 Serpong Ulujami Pintu Tol JORR 2 Jkt - Tangerang Pondok Aren Serpong Alam Sutera JORR W2.U Serpong -Cengkareng PROPERTY GROWTH 1985 1999 2004 2009 2013 Future Development 30,000 2010 450,000 JORR W1 400,000 25,000 350,000

20,000 300,000

250,000 15,000 200,000

10,000 150,000

100,000 5,000 50,000 units m2 - 0 1991-1995 1996-2000 2001-2005 2006-2010 2011-2015 2016-2020 Hotel Apartemen Ritel Office

Hotel Rooms hotel Retail Retail space Office Retail space supply growth growth 12% p.a. growth 53% p.a. 31% p.a. in the in the last 10 in the last 10 31% last 10 years 12% years 22% years Bekasi Commercial Development BEKASI Jkt - Cikampek Cipularang Pintu Tol Grand Wisata Tol Becakayu 1985 2005 2007 2018

PROPERTY GROWTH 25000 900,000 2003 2007 2014 Pintu Tol JORR Hankam Pintu Tol Cibatu Delta Mas Raya - Cikunir 800,000

20000 700,000

600,000 15000 500,000

400,000 10000 300,000

200,000 5000

100,000

units m2 0 0 < 1991 1991-1995 1996-2000 2001-2005 2006-2010 2011-2015 2016-2020 Hotel Apartemen Ritel Office

Hotel Rooms hotel Retail Retail space Office Retail space supply growth growth 8.0% p.a. growth 53% p.a. 21% p.a. in the in the last 10 in the last 10 21% last 10 years 8.0% years 53% years Commercial property market have giving significant impact to residential development

Comparison of growth of Retail and Office in Bodetabek Area in Comparison of growth of Apartment and Hotel in Bodetabek Area the last 10 years in the last 10 years

square metre (sqm) Unit and Room 700,000 80,000

600,000 70,000

60,000 500,000 50,000 400,000 40,000 300,000 30,000 200,000 20,000

100,000 10,000

- - Bogor Depok Tangerang Bekasi Bogor Depok Tangerang Bekasi Retail Office Apartment Hotel HOW the mentioned key factors that drive residential estate market

East Part Of Greater Jakarta

 Improvement in infrastructures will be main key factors that affect residential estate growth in east part of Greater Jakarta. These including : . Light Rapid Transit Toll LRT Jkt – Bdg . Elevated toll road of Cikampek Kertajati airport . Fast Train of Jakarta–  High population growth will bring to a higher requirement for residential accommodation particularly in middle to middle low market segment  Government regulation to encourage the development of industrial center, including industrial estates along Bekasi – Karawang corridor  City amenities which is represented by retail center developments increase significantly HOW the mentioned key factors that drive residential estate market

West Part Of Greater Jakarta

 Good city amenities following a significant growth in property commercial will be a competitive advantages and New town concept attractiveness for residential market in the area Tol Serpong-Balaraja  Continue improvement in city amenities will be potentially Toll contributed by the following : LRT Jkt – Bdg Kertajati airport . New town development . New business district development . In addition to natural growth of population, significant increment in universities development will rise demand for residential sectors in the area  Government regulation to West Part of Greater Jakarta as area to encourage business and industry activities that bordering with DKI Jakarta HOW the mentioned key factors that drive residential estate market

South Part Of Greater Jakarta

 Improvement in infrastructure that impact to residential market in the area is represented by : Transjakarta New town concept Commuter line . Depok – Antasari toll road Tol Serpong-Balaraja . – Toll . Light Rapid Transit LRT Jkt – Bdg Kertajati airport  Accessibility through railway basis transportation has been impacted to residential development performance in the area Toll road LRT  Tourism activities in the south part area will bring a higher Commuter line competitive advantages in the area

Toll road LRT Commuter line CONCLUSION PROPERTY MARKET IN GREATER JAKARTA

Key Factors All key factors affecting real estate market is expected to show an improvement indicators in next short to medium term. Commercial Property Growth An existence and growth of commercial properties will bring competitive advantages and attractiveness of real estate developments in Greater Jakarta. This provide good city amenities and decrease dependencies to the main city of DKI Jakarta.

“Based on all above indicators, we believe that real estate developments in Greater Jakarta will continue to grow and enjoy a positive movement in both price as well as demand” CONTACT US

Tommy H. Bastamy Head of Strategic Advisory [email protected]

Dani Indra Bhatara Vice President of Strategic Advisory Indonesia [email protected]

Angra Angreni Research & Consultancy of Strategic Advisory Indonesia [email protected]

Strategic Advisory Coldwell Banker Commercial Indonesia Kawasan bisnis Granadha, 12th B floor Jl, Jend Sudirman Kav 50 Jakarta 12930 Phone : +62 21 255 39 388 ext. 502 Fax : +62 21 255 39 399 Email : [email protected]

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