Retail Rental Prices In Jakarta Increase By 3 Percent

Photo: Doc. Antara

Property consultant Knight Frank Indonesia reported that the average retail rental price in Jakarta had increased by 3 percent compared to last semester, reaching Rp782,010 per square meter per month.

This price increase was also followed by an increase in the average service charge fee of Rp. 162,320 per month.

However, Knight Senior Research Advisor Frank Indonesia Syarifah Syaukat at a press conference in Jakarta, quoted from Antara, Thursday, September 12, said that the overall occupancy rate of retail space fell slightly by 0.45 percent compared to last year, at 77.79 percent.

Syarifah said there was a difference in the occupancy rate between retail strata and rental.

Retails or malls have two types of ownership, namely strata and rent. In retail strata, units or shophouses can be purchased and are owned by the owner. Meanwhile, rental retail, units or shophouses can only be used for a certain period of time. They rent from the property owner.

Rental retail has a higher occupancy rate, reaching 85.37 percent, compared to retail strata which is only 60.86 percent. The total supply of malls currently remains at 4,534,703 m2.

Most of the largest tenants in shopping centers come from department stores, household appliances stores, entertainment venues, furniture stores, and sports clothing stores.

"There are still about 1 million square meters of unfilled retail space in both types of retailers," said Syarifah.

To increase demand for rent and mall occupancy, Syarifah said retail could add exhibition and exhibition facilities and increase units in culinary areas (F&B).

Knight Frank said the retail sector will have three new retailers in the second semester of 2024, namely Retail Podium Thamrin Nine at Thamrin, Holland Village Mall in Cempaka Putih, Menara Jakarta in Kemayoran, and Fatmawati City Center at TB Simatupang.

Syarifah further said that in the midst of weakening people's purchasing power, retail in the upper middle class still has a strong performance and continues to be positive compared to lower middle class retailers who generally have been shifted to online shopping spaces.