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 Q2 2023
Supply: No New Supply
No project was completed during the second quarter of 2023. The total stock of Jakarta CBD office remained at 7.3 million sqm by the end of June 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
Another positive sign of demand recovery continued as indicated by the positive net take-up of 69,900 sqm, recorded during the second quarter of 2023, which is the highest quarterly net take- up ever recorded since Q3 2019. A significant portion of this take-up was still contributed by owner occupation in the existing office buildings.
In terms of business lines, tech company was observed very active in the market. 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 second quarter 2023. The average occupancy rate of the CBD office market, increased by 1.2% to 72.0% by the end of June 2023
Pricing: Relatively Stable Rent
By the end of June 2023, the average base rent in Rupiah remained relatively stable and stood at Rp.159,100 per sqm per month, representing a change of only -0.3% QoQ. In US Dollar terms, base rent decreased by 0.9%% due mostly to the weakening of Rupiah against US dollar (of 0.5% QoQ). Meanwhile, service charges remained stable and stood at Rp.91,600 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 which may not be followed by the same level of demand.
Jakarta Retail Q2 2023
Supply: Opening of One New Lifestyle Retail Center in the 2nd Quarter Of 2023
One retail center entered the Jakarta retail market in the 2nd quarter of 2023. One District at Puri, a lifestyle retail center featuring the first Road-side concept of Uniqlo commenced operation and added 5,000 sqm of retail space to the retail market in western part of Jakarta. On YoY basis, cumulative supply increased by 0.8%, bringing the total supply to about 4,707,000 sqm.
