Property Market Overview

IN BODETABEK AREA

Prepared by

Strategic Advisory - Coldwell Banker CommercialKawasan Bisnis Granadha, 12th Floor

Jl. Jend. Sudrman Kav. 50, Jakarta, 12930

COVERAGE OF PROPERTY MARKET

AREA

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

BOGOR

DEPOK

TANGERANG SELATAN

BEKASI

KEY FACTORS THAT DRIVE THE REAL ESTATE MARKET

DemographicDemographic is considerable as one of the most important factors that affects realestate development characteristics as well as its market performance. A shifting indemographic profile and preferences will lead to differentiation in real estate markettrend.

Commercial Property GrowthAn existence and growth of commercial properties will bring competitive advantagesand attractiveness of real estate developments in certain area.

Government PoliciesLegislation generally plays a major role in determining property demand and prices,with deductions, subsidies, and tax credits being some of the ways that governmentcan boost demand for real estate.

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

DEMOGRAPHICFACTORS

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2012 2013 2014 2015 2016

Bogor Depok Tangerang Tangerang Selatan Bekasi

Total Population in Bodetabek Area

3.7%B e k a s i

3.5%D e p o k

3.4%Tangsel

2.6%Tangerang

1.5%B o g o r

1

The existence of industrial estates

35% of Bekasi's GDP is contributed by the industrial sector

Main considerations of working age population including :

Transportation costs

Accessibility, including to :

- business district

- commercial area

- industrial area

Physical characteristics and residential environment

Socio-economic composition

Site characteristics and ownership

Amenities and service quality

Working age population is a major demand generator for real estate market

Total Population by Age Group in Bodetabek Area

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

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%

GOVERNMENT POLICIESFACTORS

Spatial PlanRegional and City development plan

Growth pole and center of activities

Monetary PolicySoftening of LTV KPR ratio to 15%

Positive sentiment of Tax Amnesty program

“Sejuta Rumah” ProgramRusunami

Rusunawa

Landed house

2 Infrastructure PolicyMass Rapid Transit (MRT) Jabodebek

Light Rail Transit (LRT) Jabodebek

Toll road

Kertajati and Karawang airport

Commuter Line development (Jakarta Kota-Stasiun Cikarang)

Integrated transport Masterplan design of Tangerang region

Traffic policy in Jabodetabek area

FACILITIES & INFRASTRUCTURESFACTORS

TOLL ROADJORR II = 110 km11 toll road Jabodetabek

MRTPhase 1 : 15,7 Km – 2019

Lebak Bulus – Bundaran HI

Phase 2 : 8,1 Km – 2020

Bundaran HI – Kampung Bandan

Jalur Barat – Timur : 87 Km

Target operation 2024 – 2027

LRT JabodetabekPhase 1 : 18 station – 2019

Cibubur – Cawang

Bekasi Timur – Cawang

Cawang – Dukuh Atas

Phase 2

Cibubur – Bogor

Dukuh Atas – Palmerah – Senayan

Palmerah – Grogol

BRTExisting : 13 Corridors

New development : 2 corridors

Corridor 14 : Kalimalang – Blok M

Corridor 15 : Ps. Minggu – Manggarai

KRL72 station

3LRT JakartaKb. Lama – Klp. Gading (2018)

Cempaka Putih – Ancol (2018)

Toll Road in Jabodetabek

Tol Jagorawi1978

Tol Jkt - Cikampek1985

Tol Tangerang-Merak1987

Tol Wiyoto Wiyono1990

1983Tol Jkt - Tangerang

1986Tol Soedyatmo

1988Tol dalam Kota

1991JORR W2 Selatan

JORR Selatan -- 1995

JORR E1 Selatan1998

JORR W2U & E22001

2005JORR E1 Utara

JORR E3Tol Cipularang

1999Tol Serpong

Pondok Aren

2009Toll Gate

Alam Sutera

Bogor Ring Road2009-2014

Tol Cijago I2012

Tol Gate Cibatu2014

2010JORR W1

2012JORR W2 Utara

DEVELOPMENT PHASEALONG THE TOLL ROAD

Phase 01

Housing

Phase 03

Low-riseCommercial

& Facilities

Phase 02

IndustrialEstate

Phase 04

High-riseEstate

MRT and LRT in Jabodebek

MRT Jakarta

LRT Jakarta (inner city)

LRT JakartaConnecting with Bogor & Bekasi

Lebak Bulus

SetiaBudi

Karet

Dukuh Atas

Manggarai

Gor Soemantri

Kramat

Baranangsiang

Bekasi Timur

Cawang

Palmerah

BI

Senen

GalurPulo Mas

PRJ

Gading Mas

Kemayoran

Ancol TimurKampung Bandan

KotaAngke

Pesing

BandaraSoekarno-Hatta

JogloSlipi

Tanah Abang

Sentul City

Bukit Sentul

Taman Mini

Kp. Rambutan

Ciracas

Cibinong

Cibubur

Jatibening

Cikunir

Bekasi Barat

HOW

Housing and IndustrialHousing and Industrial Estate always the first propertywhich built based on population and accessibility. Bothare the first reacted on toll road.

ApartmentApartment influenced by accessibility and availability of publictransport. Accessibility could increase yearly supply 30- 40% p.a.

HotelHotel influenced by accessibility and activity, such asMICE and Tourism. Accessibility couldincrease yearly supply 10 - 30% p.a.

RetailShopping center rely on accessibility to get catchment area. Tollroad has influence the retail center supply up to 5-10% p.a.

INFRASTRUCTURE INFLUENCE PROPERTY SECTORS

OfficeOffice is the least influenced by the toll road. Officedevelopment rely on business activites

Bodetabek Development that Influenced by Infrastructure

BogorNo significant additional new toll road ortoll gate in the 30 years. Additional tollroad only comes from Bogor Ring Road.

BekasiAdditional toll road that connect Jakartafurther east (Cipularang, Cipali) makes theJakarta-Cikampek toll road alwaysincrease in traffic. New exit toll gate inCibatu open a new area in Cikarang.

TangerangAdditional toll road that connect Serpongfrom south. New toll gate (Alam Sutera)Jakarta Outer Ring Road connectTangerang from other areas.

COMMERCIAL PROPERTY FACTORS4

“It is seem that commercial property has strong

correlation to residential market performance in

Greater Jakarta”

BOGORPROPERTY GROWTH

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

< 1991 1991-1995 1996-2000 2001-2005 2006-2010 2011-2015 2016-2020

Hotel Apartemen Ritel Office

Bogor Commercial Development

units m2

Hotel

13%

Rooms hotel supply growth 13% p.a. in the last 10 years

Retail

7.3%

Retail space growth 7.3% p.a. in the last 10 years

ApartmentBogor Outer Ring Road has an impact on apartment sector

Jagorawi

1978Bogor Outer Ring Road

2009-2014Bogor Outer Ring Road 2

2018

DEPOKPROPERTY GROWTH

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

-

10,000

20,000

30,000

40,000

50,000

60,000

1991-1995 1996-2000 2001-2005 2006-2010 2011-2015 2016-2020

Hotel Apartemen Ritel Office

Depok Commercial DevelopmentToll Cijago

2012

Hotel

4X

Rooms hotel supply growth almost 4 times p.a. in the last

10 years

Retail

42%

Retail space growth 42% p.a. in the last 10 years

ApartmentCijago Toll Road has a significant impact on apartment sector

TANGERANGPROPERTY GROWTH

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

-

5,000

10,000

15,000

20,000

25,000

30,000

1991-1995 1996-2000 2001-2005 2006-2010 2011-2015 2016-2020

Hotel Apartemen Ritel Office

Tangerang Commercial Development

units m2

Jkt - Tangerang

1985

Serpong

Pondok Aren

1999

Pintu Tol

Alam Sutera

2009

Tangerang - Merak

1987

2010

JORR W1

JORR W2.U

2013

Ulujami

Serpong

2004

JORR 2

Serpong -Cengkareng

Future Development

Hotel

31%

Rooms hotel supply growth 31% p.a. in the last 10 years

Retail

12%

Retail space growth 12% p.a. in the last 10 years

Office

22%

Retail space growth 53% p.a. in the last 10 years

BEKASIPROPERTY GROWTH

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

0

5000

10000

15000

20000

25000

< 1991 1991-1995 1996-2000 2001-2005 2006-2010 2011-2015 2016-2020

Hotel Apartemen Ritel Office

Bekasi Commercial DevelopmentJkt - Cikampek

1985

2007

JORR Hankam

Raya - Cikunir

Cipularang

2005

2003

Pintu Tol

Delta Mas

Pintu Tol Grand Wisata

2007

2014

Pintu Tol Cibatu

Tol Becakayu

2018

Hotel

21%

Rooms hotel supply growth 21% p.a. in the last 10 years

Retail

8.0%

Retail space growth 8.0% p.a. in the last 10 years

Office

53%

Retail space growth 53% p.a. in the last 10 years

units m2

Commercial property market have giving significant impact to residential development

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Bogor Depok Tangerang Bekasi

Retail Office

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

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Bogor Depok Tangerang Bekasi

Apartment Hotel

square metre (sqm) Unit and Room

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

HOWthe 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

Elevated toll road of Cikampek

Fast Train of Jakarta–Bandung

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

TollLRT Jkt – BdgKertajati airport

HOW

New town conceptTol Serpong-Balaraja

TollLRT Jkt – BdgKertajati airport

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

attractiveness for residential market in the area

Continue improvement in city amenities will be potentially

contributed by the following :

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

TransjakartaCommuter line

Toll roadLRTCommuter line

Toll roadLRTCommuter line

New town conceptTol Serpong-Balaraja

TollLRT Jkt – BdgKertajati airport

South Part Of Greater Jakarta

Improvement in infrastructure that impact to residential

market in the area is represented by :

Depok – Antasari toll road

Cinere – Jagorawi toll road

Light Rapid Transit

Accessibility through railway basis transportation has been

impacted to residential development performance in the area

Tourism activities in the south part area will bring a higher

competitive advantages in the area

the mentioned key factors that drive residential estate market

CONCLUSIONPROPERTY MARKET IN GREATER JAKARTA

Key FactorsAll key factors affecting real estate market is expected to show an improvementindicators in next short to medium term.

Commercial Property GrowthAn existence and growth of commercial properties will bring competitive advantagesand attractiveness of real estate developments in Greater Jakarta.This provide good city amenities and decrease dependencies to the main city of DKIJakarta.

“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 Indonesiatommybastamy@coldwellbanker.co.id

Dani Indra Bhatara

Vice President of Strategic Advisory Indonesiadani.indra@coldwellbanker.co.id

Angra Angreni

Research & Consultancy of Strategic Advisory Indonesiaangra.angreni@coldwellbanker.co.id

Research Reports are available athttp://www.cbcindonesia.com/research

Strategic AdvisoryColdwell Banker Commercial IndonesiaKawasan bisnis Granadha, 12th B floorJl, Jend Sudirman Kav 50Jakarta 12930Phone : +62 21 255 39 388 ext. 502Fax : +62 21 255 39 399Email : advisoryservice@coldwellbanker.co.id