JAKARTA – Jakarta office market is expected to oversupply thus decreasing the level of occupancy (occupancy) in 2017. The developer is expected to be more flexible in the rental price pegged to attract tenants.
Senior Associate Director of Colliers International Indonesia Ferry Salanto, said the occupancy rate of office space in 2016 reached 85%. This figure has decreased by about 10% from the previous year. Meanwhile, he said the downward trend in occupancy this happens every two years.
“We predict occupancy next year no better than this year. The main reason for the condition of oversupply of office in Jakarta, “Ferry said in Jakarta, Tuesday (13/12).
Ferry said, the office market is very influenced by the current macro-economic conditions, particularly the growth of gross domestic product (GDP). According to him, in a state of only 5.1% GDP growth this year indicates the weakness of the Indonesian economy.
“Assuming GDP growth of only 5.3% have yet to be sufficient to absorb the supply office. So there is still going to happen vacancy rate. Ideally grew 5.5% to be able to absorb it well, but it just happened in 2019, “he said.
According to Ferry, the trend is the addition of new office space in Jakarta are unevenly distributed with rental prices varied. This, says Ferry, which resulted in the company that has run out of the lease choose to move to another building with better facilities and cheaper prices.
“if the conditions of supply and the displacement uniformly fine anyway. But this resulted in many new buildings experienced a vacuum, “he said.
Lease Down
Under such conditions, said Ferry, developers should anticipate vacancy office space. One way to do that is to lower rental rates or adjust to market demand. If not, then the developers will have difficulty in removing the operational costs (operating costs).
“Finally, tenants have a bargaining (bargaining) higher. It is important that they (landlords) can reach a certain level of occupancy, which at the level of the operating cost can be covered. They have to survive like this until the condition can be recovered, “he said.
In addition, said Ferry, a developer who will build a new office should already have pre-commitment with prospective tenants. It is also to ensure the occupancy of the building office accommodation during operation.
research from Colliers, there will be an additional 10 new office buildings in Jakarta in 2017. Five building is located in the Central Business District (CBD), namely PCPD Tower, T Tower, Prosperity Tower, Treasury Tower, and Sapo del Tower B. Meanwhile, five others standing in the non-CBD namely ST Moritz Office Tower, Soho Pancoran, BKP Office Tower, Hermina Office Tower, and Great Sedayu Office Tower.
Laila Ramdhini / EDO
Investor Daily
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