All Sector Reports
Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
CBD Office Q1 2023
Supply: One Project Completion in Q1
One project was completed during the first quarter of 2023, namely Mori Tower (89,000 sqm) in Sudirman, bringing the total stock of Jakarta CBD office to about 7.3 million sqm by the end of March 2023. Total proposed supply set to enter the market in 2023 is projected at approximately 146,000 sqm and all of which will be of Grade-A quality.
Demand: Post Pandemic Market Recovery Continued
Positive sign of demand recovery continued as indicated by the positive net take-up of 21,100 sqm recorded during the first three months of 2023. a significant portion of this take-up was contributed by owner occupation in the existing office building: Menara BRIPens and Menara BRIlian both are located on Jl. Jendral Gatot Subroto.
In terms of building segments, Grade A and Grade B offices continued to record positive net take-up, whilst in contrary, Grade C offices still experienced negative take-up during the first quarter 2023. The average occupancy rate of the CBD office market, decreased by 0.6% to 70.8% by the end of March 2023, due mostly to additional new supply which was not followed by the same pace of demand.
Pricing: Relatively Stable Rent
By the end of March 2023, the average base rent in Rupiah remained relatively stable and stood at Rp 159,600 per sqm per month, representing changes of only 0.2% QoQ. In US Dollar terms, base rent increased by 3.7%% due mostly to the strengthening of Rupiah against US dollar (of 3.8% QoQ). Meanwhile, service charges remained stable and stood at Rp.91,400 per sqm per month.
Rental rate is expected to remain under pressure and may not rebound in 2023 as vacancies will increase again with the completion of an office project: Luminary Tower in Jakarta CBD area at the end of 2023, which will contribute 57,000 sm of new supply and may not be followed by the same level of demand.
Jakarta Retail Q1 2023
Supply: No New Supply During 1st Quarter of 2023
No additional supply entered the Jakarta retail market during the first quarter of 2023. Meanwhile, on YoY basis, cumulative supply increased by 0.7%, bringing the total supply to about 4,702,000 sqm as of the end of March 2023.
