Jakarta office market 2014

Posted by on May 1, 2014 in Uncategorized | 2 comments

Jakarta CBD market
Demand for office space in the Jakarta CBD market remained at a fairly high level of performance in line with the national economy will grow by 5.5% to 6.0% in 2014. CBD office cumulative demand is expected to grow 5.5% to the level of occupancy in the healthy category is equal to 85% to 90%.

Meanwhile, the price of the average gross rental CBD, specialized in office buildings Grade B and C, are expected to increase this year. The owner at the suggestion of the manager of the building more confidence to raise prices in line rental occupancy rates is relatively high.

The selling price of strata-title office estimated increase for 2014, but at a lower level than that in the past three years. The buyers, especially buyers with large spacious, more cautious. This is mainly due, nationally and globally interconnected economy situation will happen in 2014 is relatively stagnant. Demand for rental and transaction activity in existing office buildings continued to show positive growth in the first quarter of 2014, the expansion and relocation of existing tenants, and the existence of intense competition associated with the large supply of strata-title office will be included in the next 2 years.

Jakarta Non CBD market domain in TB Simatupang street level

What about the office market in Jakarta CBD area ? Office supplies to end of 2013 is 3 million square meters. In the short term until the year 2016, the office supply growth in Non- CBD area of Jakarta is still going higher that is as big as 39 %. Office supply is still dominated by the supply coming from South Jakarta that is equal to 70% of total supply in Non- CBD areas. Street level TB Simatupang still be the largest concentration of supply coming in south Jakarta.

Office supply growth outside South Jakarta , looks more and more springing up and spread . This gives an indication that the future supply of office will crawl the new commercial area in the medium to long term. Some of the areas that seem to stand out lately and are predicted to be more and more such Puri Indah, Pluit, Kemayoran and Cempaka Putih. Even for some areas in the Greater Jakarta area looks more and more passionate for example bintaro and BSD – Alam Sutera. Some large developers have seen their show considerable commitment in developing new areas, such as the Metropolitan Kencana, General Sedayu, Lippo Group, Sinar Mas and Alpha Goldland Realty.

Office market in Non- CBD area of Jakarta still shows relatively very healthy condition as indicated from still good average occupancy rate of 91% and the higher the growth rate of net absorption. Average net absorption in the period 2008 to 2013 experienced growth of an average of 26 %, and is projected to grow on average by 25 % until 2016.

Demand for office space in non-CBD area of Jakarta in addition to coming from the need to use its own, also comes from the demand for rental space and strata-title growing proportion that is projected over the next few years. And again, South Jakarta, particularly TB Simatupang corridor will still be the largest contributor to the level of demand compared to other districts in the Non-CBD area of Jakarta in the next 3 years. Some upcoming office projects in the corridor TB Simatupang now have pre-commitment levels are quite good (> 60%) and are ready to enter the market until 2016.

In terms of rents , office market in the CBD area of Jakarta Non- registered a growth of the gross rental price of an average of 21 % for 2013 and is the highest annual growth in rental prices is unprecedented. The highest growth average rental prices occurred in North Jakarta due to the influx of new office buildings in the area Pluit good quality

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