Rental rates continue upward trend

The average asking gross rent of mid-up leased apartment units continued to climb upwards in the second quarter of this year, partly due to the increase in the oil price in the first three months.

Colliers International Indonesia (CII) property consulting company reported the average monthly rent of mid-up leased apartment units for two-bedroom increased to US$18 per sq m from $17 per sq m.

"However, the asking rent of lower-segment apartments was recorded to stabilize at $11 per sq m per month," CII said in its Quarterly Research Report.

According to CII, existing leased apartments were facing tough competition from converted strata-title units in the market.

In the secondary market, selected fresh strata-titled units from some completed projects offered lower rent, ranging from $5 up to $8 per sq m a month for middle class apartments located outside the Central Business District (CBD) area, such as Mediterania Tanjung Duren, Gajah Mada Mediterania Residence and Mediterania Palace Kemayoran. Units offered were mostly of small size averaging 45 sq m.

Meanwhile, the upper class units which were mostly located in the CBD area -- Sudirman Mansion, Bellagio Residence and Daksa Residence -- offered rental prices at between $13 and $19 per sq m per month.

Serviced apartment with daily service were priced higher. In the CBD area rent for two-bedroom units with the average size of 139 sq m was around $20 per sq m per month, while in the non-CBD area, the asking rent stayed at $16 per sq m per month.