Jakarta CBD Offices Estimated to Increase Service Charges, While Occupancy Rate to Fall

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foto : mgm.mo

JAKARTA, presidentpost.com – Based on its research, global real estate services firm Cushman & Wakefield estimates the occupancy rate of Jakarta CBD office buildings is going to fall due to the oversupply with 486,000 square meters (sq.m.) new completion year to date (YTD). It is expected that they will increase the service charges in the first quarter of 2018 (1Q18).

During 2017 the leasing inquiries and transactions mostly came from tenant relocations. The net take-up in 4Q17 reached 21,300 sq.m., with net take‐up of 187,000 sq.m. over the full year. This marked a significant increase from 83,300 sq.m. throughout 2016. However, the average occupancy rate in 4Q17 fell to 78.45% from 81.80% for the same period of 2016 due to oversupply.

Rentals are expected to remain under pressure going into 2018, with overall vacancies projected to rise further than that was recorded in 4Q17 at 21.60%. In 2017 the average gross rental return in US dollar terms stood at US$22.47 per sq.m. per month, a decrease of 5.10% YOY.

Meantime the gross domestic product was forecast to grow by 5.10% in 2017. The rupiah depreciated by 2.30% to 13,555 per US$1.00 during 4Q17 (and 0.70% year-on-year (YOY)). The inflation reached 2.87% by November, which was slightly higher than at the same point in 2016 (2.59%). In contrast, the stock market saw an increase of 3.00% during 4Q17, with the composite index closing at 6,035 on December 8.

The list of vacancy rate and rental of Jakarta CBD Offices is presented as follows:

SUBMARKET INVENTORY (SQM) VACANCY RATE PLANNED & UNDER CONSTRUCTION (SQM) GRADE A EFFECTIVE RENT (Rp/SQM) GRADE A EFFECTIVE RENT (US$/SQM)
Sudirman 2,122,550 17.7% 781,000 Rp382,300 $28.21
Kuningan   25.0% 226,000 Rp308,000 $22.72
Gatot Subroto 1,082,500   139,200   $27.64
Thamrin    469,350   7.8% 108,500 Rp378,700 $27.94
Satrio – Mas Mansyur    534,664 20.0%   66,000 Rp310,500 $22.91
Others (Senayan etc)    276,625   6.1%      0 Rp511,650 $37.75
 

 

(WNC/TPP)