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 2024
Supply: No New Project Entering the Market
No project was completed during the first quarter of 2024, and the total stock of Jakarta CBD office remained at about 7.4 million sqm by the end of March 2024. No new project is expected to enter in full year 2024 as projects currently in advanced stages of construction i.e Gedung Indonesia 1 is still put on hold.
Demand: Occupancy Continued to Improve
Transaction activities during the first 3 months of 2024 was relatively slower compared to in the previous quarters, due to the political activities for general elections. In anticipation of the general election result and economic condition, most tenants were in “cautious mode” and tend to hold their decisions for major relocations and expansions.
Few large transactions, however, were recorded in CBD office market by Co-working space, Financial Institution and Export-Import companies.
A positive net take-up of 36,600 sqm was still seen in overall CBD office market during the first quarter of 2024, mostly contributed by expansions of the existing tenants and about 83% of this quarterly net take-up occurred in Grade A buildings.
As there was no new supply entering the market, the positive net take-up during the review quarter increased the average occupancy rate of the CBD office market as of the end of March 2024 by 2.7% YoY to 73.5%.
Pricing: Asking Rents Started to Increase
Asking rent started to increase in line with the steady improving occupancy of the overall market. By the end of March 2024, the average base Rupiah rent stood at Rp.166,800 per sqm per month, representing an increase of 4.5% YoY. In US Dollar terms, base rent decreased by 1.6% YoY to US$10.52 due mostly to the weakening of Rupiah against US Dollar by 5.8% YoY. Meanwhile, service charges continued to increase by 2.2% YoY, standing at Rp.93,400 per sqm per month.
