Why Jakarta saw no new serviced apartment projects in Q2
Stable occupancy and expatriate demand supported by long-term projects signal balanced conditions, potentially favouring flexible, higher-quality accommodation without requiring near-term supply expansion.
No new serviced apartment projects were completed in Jakarta during Q2 2026, while operators reconfigured and released existing inventory to match tenant preferences.
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The lack of new supply has helped maintain a balanced competitive environment.
Jakarta's serviced apartment market is being increasingly shaped by currency movements and corporate mobility rather than financing conditions, creating a distinct demand cycle from the city's strata-title apartment sector, according to Colliers.
In its Q2 2026 market update, Colliers said the depreciation of the Indonesian Rupiah, combined with sustained expatriate inflows linked to long-term investment projects, has strengthened demand for serviced apartments by improving affordability for multinational companies operating with US Dollar-denominated housing budgets.
The consultancy said no new serviced apartment projects were completed during the quarter, with operators instead focusing on optimising existing inventory. Strategies included reconfiguring unit layouts, subdividing larger apartments and releasing previously unavailable stock such as penthouses to better match changing tenant preferences for more flexible accommodation.
Colliers said the lack of new supply has helped maintain a balanced competitive environment, allowing operators to concentrate on improving occupancy, product quality and operational efficiency rather than expanding inventory.
Occupancy remained relatively stable during Q2 despite seasonal fluctuations, supported by expatriates working on long-term energy, industrial and digital infrastructure projects. While the extended holiday period provided a temporary lift to short-term demand, Colliers said long-term corporate leases continued to underpin the market.
According to Colliers, the weaker Rupiah has also enhanced multinational companies' purchasing power, enabling many to secure larger or higher-quality accommodation without increasing their overall housing budgets. The consultancy expects long-term investment projects to continue supporting expatriate demand through the remainder of 2026, with future market performance likely to depend on operators' ability to deliver greater flexibility and service quality.