Office Market Update
The cumulative total office stock in the Jakarta CBD increased slightly by 1.8% from the previous period to 6,891 square meters with only one new completed project named World Capital Tower entering the market in the first half of 2020. In addition, the rental office stock was recorded at 4,775,769 square meters of which 25% was Premium Grade A, 60% was Grade A, 13% was Grade B and 2% was Grade C. Approximately 24% or 116,500 square meters of the total new office supply in the pipeline until 2021 are expected to enter the market in the second semester of 2020.
Overall occupancy has consistently trended downward since 2014, declining to 75.9% in the first half of 2020, leaving a total of 1,662,990 square meters of vacant spaces. Despite the pandemic crisis, the trend of flight to quality helped to push demand in the first half of 2020 as reflected in the net absorption figures with Grade A buildings recording a modest positive net take-up of 79,469 square meters while other grades showed minor mixed results.