Jakarta's Rental Apartment Market Stagnates, Relies on Contract Renewals

JAKARTA - The rental apartment market in Jakarta began the first quarter of 2026 with a somewhat subdued tone, yet it is marked by considerable caution.

This sector exhibits a unique resilience. Although price growth has slowed, the stability of occupancy rates serves as evidence that market demand remains active, albeit at a more moderate pace compared to previous years.

Senior Associate Director at Colliers Indonesia, Ferry Salanto, provides an in-depth overview of the current roadmap for the rental residential industry.

From new supply to shifts in corporate tenant preferences, Jakarta is undergoing a realignment to meet its vertical housing needs.

In the first quarter of 2026, the new face of the rental apartment market does not stem from pure serviced apartment projects, but rather from the completion of rental condominiums.

On the other hand, the serviced apartment subsector is experiencing a fairly prolonged construction pause.

Up to March 2026, there have been no additions of new operating units. However, optimism lingers with the topping off stage completion on two projects under the Ascott operator.

A total of 435 new units are projected to bolster the market stock in the third quarter of 2026.

This model combines residential, office, and commercial functions, deemed more adaptive in attracting expatriate and corporate tenants in premium locations.

Occupancy rates at the start of this year showed a slight increase, largely driven by seasonal factors rather than massive structural growth.

Serviced apartments recorded a +0.4% increase (QoQ), aided by short-term demand during the Eid al-Fitr holiday period.

Meanwhile, dedicated rental apartments grew steadily by +0.5% (QoQ), reflecting a solid demand base.