Prices for strata-title office buildings in Jakarta are expected to remain stagnant until next year as demand is expected to stay flat amid sluggish growth of new investments in the country, according to a property consultant.

“The average office price tends to be flat or moderate, at least until the end of 2020, even though the supply is limited,” Eko Arfianto, Indonesia senior research manager of leading global real estate services and investment management company Colliers International, told The Jakarta Post on Wednesday.

Prices for strata-title office buildings in Jakarta fell by 8 percent year-on-year (yoy) in the second quarter of this year due to sluggish demand, he said, adding that since January, sales have totaled 15,000 square meters.

The sluggish growth is partly due to weak growth in new investments. According to the Investment Coordinating Board (BKPM), the realization of total investments in the country rose only 5.3 percent yoy to Rp 195.1 trillion (US$13.95 billion) in the second quarter of this year.

Of the total, domestic investment rose 14.1 percent yoy to Rp 76. 4 trillion, while foreign investment dropped 0.9 percent to Rp 107.9 trillion.

According to Colliers’ research data, based on available space, including sales prices in the secondary market, the average selling price has been relatively similar over the past few years, ranging from Rp 40 million to Rp 100 million per sqm.  

Popular

Women in philanthropy: Fifi Pangestu’s leadership and vision in Bakti Barito Foundation

Philippines to endure extreme heat until mid-May

Magnitude 6.5 earthquake strikes off Java island: authorities