Sunday, 09 May 2021 | 14:56 WIB

Serviced Apartments Look to Staycation to Boost Occupancy Rate

Serviced Apartments Look to Staycation to Boost Occupancy Rate (antara)

JAKARTA, NETRALNEWS.COM - Property consultant Knight Frank Indonesia says the current staycation trend is one of the efforts done by apartment managers to encourage occupancy rate growth of rental (serviced) apartments amid the downturn, which had happened even before the COVID-19 pandemic.

At the Jakarta Property Highlights 2020 presentation on Thursday (02/18/2021), Syarifah Syaukat, Senior Advisor of Research at Knight Frank Indonesia, explained that the average occupancy rate for rental apartments in the second semester of 2020 was only 60.7 percent, unchanged from the previous semester, but decreased by 12 percent compared to occupancy in the second half of 2019.

"There are indications that a staycation is a program to increase visits to rental apartments," she said.

Syarifah continued that the stagnation of occupancy in the rental apartment sector was attributed to the policy of restricting entry for foreign citizens as a measure to prevent the spreading of COVID-19 coronavirus.

She said the rental apartment sector is highly dependent on tenants who come from abroad or expatriates. In the midst of these conditions, the property consultant sees an expansion of the target segment, where the apartment managers then target local tenants.

"Thee ispotential demand from local tenants who generally need relaxation on weekends or long weekends that are not far from the areas where they live," Syarifah said.

On the other hand, Syarifah continued that offering staycation programs from rental apartment managers is a challenge for hotels. Although a number of hotels have also offered a similar concept, rental apartments have their own value for consumers/tenants.

This starts from the services that are provided, the prices that are more competitive than hotels, and the availability of creative spots that are of interest to the public.

"People have more options to adjust to their budget when they are interested in doing a staycation," she said.

Syarifah said that based on discussions with a number of apartment managers and tracing market records, there has been a rise in the occupancy of leased apartments by 20-30 percent in a certain period.

"The range of increase in rents is not like normal conditions, but at certain periods, for example weekends or long holidays, which could rise by 20-30 percent. We think this trend is quite good in an effort to improve corrections in the rental apartment sector," Syarifah said, as reported by Antara.