The DKI Jakarta Office Property Market Will Still Be Memble For The Next 2 Years

Illustrated. (Achmad Basarrudin / YOU)

JAKARTA - The property consultant estimates that the property market conditions for offices in the DKI Jakarta area will return to normal in 2022, considering that the economic situation in 2020 is considered not very encouraging for this sector.

"It still takes time for the office business to return to normal," said Ferry Salanto, Senior Associate Director of Research at Colliers International Indonesia, quoted from Antara, Wednesday, October 7.

This, he said, can be seen from, among others, the projected level of demand for office space which is lower than the previous projections, due to the pandemic and the slowing rate of economic growth.

Regarding the condition of the COVID-19 pandemic, Ferry argues that with the vaccine it will help economic recovery which will be accompanied by a property boom in the following year.

"The mid-2021s will likely be a sign (a sign) of whether the property is moving better or not and the results will not be visible until 2022," he said.

He revealed that in the third quarter of 2020 there was no new supply either in the CBD (central business district) or outside the CBD.

Based on data from Colliers International Indonesia, the projected cumulative supply in Jakarta is currently recorded at 10.3 million square meters, with 6.9 million square meters or about 66 percent of which is located in the CBD.

In addition, the number of office space in Jakarta that has not been absorbed is recorded at 1.9 million square meters, of which 68 percent is supplied to the CBD.

With these conditions, he continued, the more additional supply of office buildings in the future will put more pressure on the occupancy rate in the capital city in 2021.

Previously, property consulting company Knight Frank Indonesia revealed that the COVID-19 pandemic had caused the occupancy rate of offices in Jakarta to slightly decrease from the occupancy of the second semester of 2019 of 76 percent to 75.9 percent in the first semester of 2020.

"The occupancy rate, as predicted, will drop to 75.9 percent. This is also followed by rental prices which tend to fall and are under pressure in all grades," said Senior Research Advisor for Knight Frank Indonesia Syarifah Syaukat.

He said the vacancy rate for Jakarta office space reached 24.1 percent and there was an absorption of 81,699 square meters of total space during this period.