MARKETBEAT

INDUSTRIAL ESTATE
SNAPSHOT
GREATER JAKARTA, INDONESIA
Q4 2014
A Cushman & Wakefield Research Publication

ECONOMY OUTLOOK
Full year GDP growth for 2014 is We expect to see more inquiries and stronger demand to continue
expected to reach the lower end of the into the next year. However, the demand size per transaction may
forecast 5.1 – 5.5% range. The stock remain relatively small, as no major demand generator is expected
market saw a slight decrease of 1.3% during to enter the market in 2015.
the last three months of the year, with the
Additional supply, especially from new industrial estates may enter
composite index closing at 5,156 on December 19. On the
the market in the near future, which are triggered mostly by
currency side, the Rupiah experienced a depreciation of 4.3% to
improved infrastructure (toll road).
Rp12,521 per US Dollar, mostly due to the strengthening of the US
Dollar. With year-to-date inflation standing at 5.8%, inflation for the
whole of 2014 will slightly exceed the 5.5% figure projected by ECONOMIC INDICATORS
Bank Indonesia. 2012 2013 2014F
GDP Growth 6.3% 5.5 - 5.9% 5.1 – 5.5%
INDUSTRIAL ESTATE MARKET REVIEW
CPI Growth 4.5% 9.8% 5.8% - 6.0%
Net take-up of the last quarter of 2014 rebounded to
Central Bank-Rate 5.75% 7.5% 7.75%
almost 75 hectares (ha), growing slightly by about 38%
Source: Government data (Statistic Bureau, Central Bank of Indonesia, Ministry of Finance)
quarter-on-quarter. Similarly, on an annual basis, the FY 2014
was 28% better than the total net take-up recorded in 2013. The
2014 annual net take-up was the first positive annual growth in the
INDUSTRIAL LAND MARKET STATISTICS
last three years.
LOCATION OVERALL ABSORPTION AVERAGE LAND PRICE
Demand still came from automotive-related industries especially RATE IDR/SQ.M. EURO/SQ.M. US$/SF
from Japan. The average demand size in this quarter remained Jakarta 86.5% 4,000,000 262.6 29.7
relatively small compared to the 2011/2012’s figures at about 3.2 ha Tangerang 67.5% 2,000,000 131.3 14.8
per transaction. Bekasi 81.6% 2,674,299 175.6 19.8
Karawang &
70.5% 1,792,226 117.7 13.3
Due to a larger supply than demand, the cumulative sales rate Purwakarta
continued to decrease and reached 76.5%, which is the lowest sales Serang 73.0% 1,425,000 93.6 10.6
rate in the last five years. Bogor 80.4% 1,800,000 118.2 13.4
Average 76.5% 2,290,000 150.4 17.0
Similar to the previous quarter, industrial estates in Bekasi area
remained the preferred locations, enjoying significant share of the
total transactions in the review quarter, with Serang area capturing INDUSTRIAL LAND QUARTERLY NET TAKE-UP
most of the remaining demand. Size (Ha)
350
Significant supply from a new industrial estate in Karawang
entered the market during the review quarter and increased 300
the cumulative supply of industrial land in the Greater Jakarta area 250
to about 10,700 ha.
200
The estimated average achieved land price increased to
about Rp2.3 million per square meter (/sq.m.), reflecting a 150

15% quarterly increment (+20% year-on-year). In US Dollar 100

terms, it increased to US$183/sq.m. (+9.6% quarter-on-quarter or
50
17.3% year-on-year).
100

322
189
178
268
153
186
147
109

142
41

25
29

86
55
39
46
18

54
75

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