Jakarta Office Market: Occupancy Rate Decreased Significantly

The first quarter of 2018 saw a positive net take-up of 54,200 sqm, almost double compared to the same period last year.

RumahHokie.com (Jakarta) – Bank Indonesia projected that the national economic growth will expand between 5.1% and 5.5% for the full year ahead. The stock market saw a decrease of 3% during the first quarter of 2018, with the composite index closing at 6,189 on March 29, 2018.

Read More: Survey: All Property Types Enjoyed Rising Prices

On the currency side, the Rupiah experienced further depreciation, dropping to Rp13,766 for every USD1. Year-to-date (YTD) inflation was seen at 0.99% by the end of March 2018, which is below the YTD inflation rate for the same quarter last year.

Occupancy Rate and Rentals
Based on research conducted by Cushman & Wakefield, the first quarter of 2018 saw a positive net take-up of 54,200 square meters (sqm), almost double compared to the same period last year.

However, the average occupancy rate in the first quarter fell to 76.67% from 80.85% for the same period of 2017. This was mainly due to the large additional supply in first quarter 2018.

Read More: Jakarta CBD Office Market To Pick-Up in 2020

The average gross rental, in US Dollar terms, continued to decrease by 6.67% and stood at US$21.82 per sqm per month. Rentals are expected to remain under pressure during 2018, with overall vacancies projected to rise further as the supply growth will not be balanced by the demand size.

8 significant Projects
Cushman & Wakefield mentioned, in Q1 2018, rentals in several markets in Asia-Pacific, are either stable or on an upward trend this year, except for a few supply-heavy markets such as Jakarta and Kuala Lumpur which are still in the midst of a construction boom.

Read More: Indonesia Property Market in 2018 – 2019, What Will Happen?

At least eight significant projects under construction in 2018: District 8 Tower Revenue (45,000 sqm), Menara ASTRA (70,000 sqm), World Capital Tower (75,000 sqm), Office One (17,000 sqm), World Trade Center 3 (69,000 sqm), Sequis Tower (78,000 sqm), Millenium Centennial Center (100,000 sqm), and Unity Square (83,000 sqm).

Anto Erawan
anto.erawan@rumahhokie.com

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