The latest market insight about all property market sectors, including office building, retail, and industrial space
As this country is expected to hit economic growth of 5.2% this year, market sentiment remains positive. As the market has normally run, demand for office space is projected to remain moderate with positive absorption for the rest of this year. Some new supplies are slated to complete and might bring pressure on the occupancy rate, especially in the OCBD. In parallel, CBD market is expected to increase due to the absence of new office supply.
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Pertaining to the ongoing vaccination program, the year 2021 is expected to be the period where occupiers should gain more confidence in having their operational back, despite not in full yet.
In order to reduce the spread of this pandemic, Indonesian government took initiative actions by urging societies to reduce their activities such as social distancing, wearing personal protective equipment, and also work from home (WFH), which have been applicable to all individuals, groups and institutions. Despite that one quarter has passed and there is no certainty when the pandemic would end, there are some measurement that expected to occur in office market.
Omnibus Law: What would be the significance towards Property Market?
Indonesia has been fed by flashy news recently, called Job Creation Law (Undang Undang Cipta Kerja) or well known as the “Omnibus Law”. It is, actually, aimed to improve the ease of doing business and stimulate investment climate, especially under the hit on our economy due to COVID-19 pandemic.
Further Restriction, Further “Delay” of Business Operational Improvement.
During the implementation of “New Normal” in the previous quarter, business activities contracted as operations resumed. However, surging case of Covid-19 in Q3 2020 urged Jakarta Governor to impose further restriction to 25% of capacity in September, bringing business to further decelerate.
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