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Colliers Quarterly Property Market Report H1 2022 Surabaya All Sectors

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Office

The Work from Home (WFH) strategy has resulted in more flexibility in working habits, both in terms of location and working hours. This has led to efficiency measures, with companies adjusting working arrangements for employees and maximizing the usage of space. Landlords need to anticipate such efficiency trends leading to fewer space inquiries, especially from new businesses beginning to explore opportunities in Surabaya, or from existing tenants requiring agile spaces as alternatives to paying higher occupancy costs and longer lease periods for larger spaces.

The current circumstances are more favourable to tenants, and landlords should continue to adopt flexibility in terms of rental negotiations and lease-term periods to attract more tenants.

Apartment

The market remains stagnant this quarter, with no new projects introduced or completed. This quarter’s sales performance was the weakest with only less than a hundred units sold. Even so, the asking price has increased but with limitation, as only some projects implemented a hike while the others retained their price.

However, we believe this stagnation will not remain long as new products will be launched next semester. Also, there is an indication of a rising interest and inquiries for strata-title apartments. Therefore, developers can use this opportunity to boost their sales.

Retail

The shopping centre market in Surabaya signaled a gradual return, as tenants have begun re-opening their stores and visitors become more comfortable coming to shop. The vibe inside malls has improved with regular events and exhibitions.

Owners and management continue to change in order to determine the best format in maintaining positive performance in their malls. During the pandemic, competition amongst shopping centres has forced management to find the best way to keep their shopping centre a leading shopping destination. Mall managements need to pay attention to their target customer demography and meticulously formulate a suitable composition of their tenants.

Hotel

The hotel industry has started seeing improving MICE activities, which are continually held in hotels. At the same time, we also notice that business trips have started picking up, further propelled by a more relaxed policy that has opened the gates for international arrivals at Juanda Airport. Today, hotel performance both in occupancy and room rate has exceeded its level in 2020-2021, albeit still lower than that before the pandemic. All in all, performance will likely trend upward, provided the economy continues to grow and the pandemic curbed.

With all the favourable signs, however, we think the overall condition is still unstable. Hoteliers should anticipate a flawed condition, particularly in managing operations that deal with rooms, outlets, manning, etc., which could potentially incur additional burden for the hotel. Most importantly, the hotel industry should remain flexible in adjusting to dynamics and trends.

Industrial Estate

An improving economic outlook is strengthening sentiment among foreign investors. The reopening of the country will help boost the number of business travellers, particularly those inspecting construction sites. Being able to make physical site inspections is considered an important factor in facilitating investment decisions. Further, we expect some land inquiries from chemical companies, FMCG, and battery producers in the next semester, as some of them are still in their preliminary stages.

The demand for warehouse will be driven by a thriving e-commerce segment and a rebound in manufacturing activities driven by foreign direct investment (FDI). We encourage developers to highlight the advantage of locating a warehouse within or nearby industrial estates in order to be more efficient in terms of logistical costs.


SurabayaAllSectorMarketReports_2022

Colliers Quarterly Property Market Report H1 2022 Surabaya All Sectors

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Related Experts

Ferry Salanto

Senior Associate Director

Research

Jakarta

As Head Research Department, Ferry is in charge in providing property market knowledge for internal purposes and for clients. The scope of sectors covered in the quarterly market report comprises office, apartment, retail, hotel and industrial estate.

In regional tasks, the Heads of Research of each country work together in providing regional market reports covering the Asia Pacific region and globally. Currently Research Department is not only operating as a cost-centre department, as he and his team have been assigned by the Central Bank to provide monthly market information.

On the consulting front, the task involves providing a wide range of advisory services to our clients. Working closely with Consulting Department, we help clientsby preparing feasibility studies to determine whether their property projectsare viable from both financial or marketing aspects. 

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Bagus Adikusumo

Senior Director

Office Services

Jakarta

Bagus Adikusumo is currently the Senior Director of Office Services Department. His main objective is to assist building owners exclusively to market their office buildings, whether strata or lease, to local or multi-national companies.  He manages the office property representation team, who are responsible for leasing or selling office space for building owners in a timely manner.

At the same time, Bagus also manages office tenant representation team in order to assist corporate clients with their commercial real estate requirements.

Bagus has handled a variety of corporate accounts and received many recommendation letters from his corporate clients who are very satisfied with his professionalism. He has been in the real estate business since 1996 and consequently has been involved in many real estate transactions in other sectors besides commercial services. Additionally, he has worked on investment transactions involving land, and residential or mixed-use developments.

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Sander Halsema

Senior Associate Director

Retail Services

Jakarta

Sander joined Colliers International in July 2013 as Head of Marketing for Colliers the Netherlands, based in Amsterdam. After working for Colliers the Netherlands for two years Sander moved to Indonesia to join the Colliers team in Jakarta. Sander is currently heading the Retail Services Department at Colliers International Indonesia.

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Lenny Sinaga

Residential Services Manager

Residential Services

Jakarta

As a team leader of the Residential Tenant Representation division at Colliers International Indonesia, I direct all strategic and operational aspects of this important service line for the Company. I am responsible overall for numerous clients. A partial list is included in the following page.

I was graduated from Tarakanita Secretarial Academy in 1997. Now I have more than 20 years of experience in hospitality, property brokerage and residential services. Prior to joining the Company, I managed Citra Regency Apartment (now Somerset Grand Citra-Ascott Group) and had successfully marketed/leased the apartments during the financial crisis. With my extensive client management and business development experience, I am responsible for the continuous adoption of ‘best-in-class’ methods in all aspects of Colliers Residential Tenant and Landlord Representation services.

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Rivan Munansa

Director

Industrial & Logistics Services

Jakarta

Rivan has had over 20 years experience in real estate with expertise and knowledge not only in the industrial sector, but also in other property sectors.

As the head of Colliers’ Industrial Services Division in Jakarta, Indonesia, Rivan handles all lease and sale industrial transactions and real estate investments. Rivan has a track record of being appointed by local and multinational companies to represent their industrial requirements on both a local and regional basis.

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