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Jakarta’s CBD office occupancy at lowest in five years
COVID-19 has further pushed the office occupancy rate in Jakarta's central business district (CBD) to 79.2 percent in the second quarter this year, the lowest in five years, according to Colliers.
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Cars pass through Sudirman Central Business District in Central Jakarta. (The Jakarta Post/Iqbal Yuwansyah )
O
ffice occupancy in Jakarta’s central business district (CBD) reached a five-year low in the second quarter of this year, and is expected to continue declining until the end of 2021, as emergency COVID-19 restrictions compel employees to work from home.
Property consultancy Colliers reported that the CBD office occupancy rate fell to 79.2 percent in the second quarter, down 1.1 percentage points quarter-on-quarter (qoq).
“For the first time in history, the occupancy rate in the CBD was below 80 percent,” said Colliers research head Ferry Salanto in a press briefing on Wednesday.
In comparison, occupancy levels in the CBD area have stood around the 80 percent level in the last five years with the highest at 86 percent in 2018.
The consultancy expected CBD occupancy rates to decline by up to 2.5 percentage points to 76.7 percent by year-end due to aggressively increasing supply and persistently low demand. Several new office tower projects are set to be completed this year and many offices are legally required to enact work-from-home policies.
Jakarta’s office property market is poised to be one of the hardest-hit property markets this year as new 14-day emergency public activity restrictions (PPKM Darurat) across Java and Bali exacerbate an oversupply problem that has been around since before the pandemic.
Read also: Jakarta’s office market to remain under pressure in 2021: Colliers
