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Empty offices can ease Jakarta housing backlog with right incentives, JPI says
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Vehicles are seen parked at Kalibata City Apartments, Jakarta, on Oct. 10, 2015. (JP/Dhoni Setiawan)
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ransforming empty office space into residential areas could help ease the housing backlog in Jakarta and its surroundings, according to Jakarta Property Institute (JPI), but implementing the idea will be a challenge given prevailing regulatory red tape and high costs.
JPI executive director Wendy Haryanto told The Jakarta Post on Monday that it requires the right incentives so that building owners are willing to convert empty office buildings into vertical housing.
Despite appearing to be a promising solution to help ease demand for housing, converting office space incurs high costs that would discourage owners from taking the move, she said. Re-arranging plumbing systems and electricity, among many other measures, would be particularly pricey.
According to Wendy, licensing could be tough as building licenses for offices and households differ from each other.
“Adding plumbing or an elevator to make the office more habitable is complicated and requires a lot of work. For instance, Pasar Rumput apartment complex lacks an elevator but is still very expensive,” she said.
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As a result, no one is currently interested in transforming workplaces into living spaces, she said. Property owners would face difficulties in getting a reasonable return, given the expense of converting offices into housing.
