The latest market insight about all property market sectors, including office building, retail, and industrial space
Despite surprisingly achieving economic growth of 5.1% in 2025, yet, the global tension became sharper as there was potential threat of oil-price increase. By the end of the running quarter, there was no confirmation yet that fuel price would be increased. However, many corporations became cautious pertaining to the potential fuel price issue. The government enacted WFH (Work From Home) policy for once-a-week to government institutions in March this year, while for private sectors, the policy was not obligatory. Hence, we would expect that some corporations would still inquire for business space.
Overall rental is expected to stabilize despite the absence of new supply, especially in the CBD, yet, rental in the OCBD market might be adjusted as in the first quarter this year, it registered negative achievement, while expecting some new supplies by end of 2026.
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.
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.
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