The latest market insight about all property market sectors, including office building, retail, and industrial space
The continued adoption of hybrid working model, particularly among multinational companies aligning with regional office policies, combined with the ongoing flight-to-quality trend, have led to a shift in demand toward smaller office spaces in higher-quality buildings located in more strategic areas. This reflects a growing preference for efficiency, accessibility, and premium-grade amenities.
Rental rates in Jakarta CBD are projected to gradually experience an uptick, amidst the absence of upcoming new supply and strengthening demand for high-quality buildings. In the meantime, rental rates in the OCBD area are expected to remain stable, as landlords are likely to maintain competitive pricing in response to future new supply and the need to attract and retain tenants.
Download PDF PDF | 3.07MB
The positive sentiment towards recovery in 2022 has been high as the projected economic growth of 2022 by the government ranges 4.7%-5.5%. Some factors including vaccination rollout, the resume of business activities, and government stimulus would boost market confidence. The third dose of vaccination has been planned by the government and will be starting in the first quarter of 2022. A positive economic outlook driven by ongoing global economic improvement is expected to drive next year’s property demand growth.
The lockdown (PPKM) entering the Q3 2021 seemed to lengthen the delay of tenant activities. However, the vaccination program and such lockdown had been successful in suppressing the pandemic spread.
Despite the vaccination, as the pandemic case tends to increase by end of this quarter, there is the possibility that government would impose another restriction, especially on the red zone like Jakarta. Shall such restriction take place, business activities would undergo further slowdown that could trigger the government to revise their economic growth target to below 4.0% for 2021
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.
Description