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ndonesia’s stellar economic performance and strong growth in investment realization during the first nine months of this year have helped boost the occupancy rate of offices in Greater Jakarta.

Property consultancy company Coldwell Banker Indonesia said Thursday that the average occupancy rate in the city’s leasable office rose to about 90 percent in the third quarter of this year from 85 percent in the same period, last year.

“In the third quarter, the office leasing sector experienced the most promising growth [in occupancy rate] compared to other property sectors [retail and residential],” said the Coldwell Banker Indonesia’s vice president for research and consultancy, Dwi Novita Yeni, at a press conference in Jakarta.

According to the company’s data, the occupancy rate of a leasable office in the central business district (CBD) area rises 1.83 percent from the previous quarter to 91.64 percent, while in areas outside the CBD, the rate is up 0.74 to 86.97 percent.

Currently, the total stock of nine leasable offices in Greater Jakarta reaches 6.1 million square meters (sqm) comprising 3.8 million sqm in the CBD area and 2.3 million in other areas, the data says. In two years time, the spaces will add 667,334 sqm with the completion of several under-construction projects such as Sentral Senayan 3, Allianz Tower and Plaza Simatupang.

Dwi predicted that the demand for leasable offices in years to come would remain steady due partly to growing investments.

According to the Coordinating Investment Board’s (BKPM) data, in the first half of this year, the year-on-year realization of investments rose by 40 percent to Rp 92.9 trillion (US$10.4 billion). The realized investments comprised Rp 21.9 trillion in domestic investment and Rp 71 trillion in foreign investment.

Dwi predicted that the increase in the demand would push up leasing rates in the coming months.

“Currently, the monthly rental prices in the CBD area range between Rp 45,000 and Rp 206,655 per square meter, while in areas outside the CBD, the prices range between Rp 45,000 and Rp 134,775 per sqm,” she told reporters.

Coldwell Banker Indonesia’s data also show that the strata-title office sector garners a growing popularity.

“The strata-title office sector is becoming more popular as many local companies are more confident with their business prospects in line with the positive outlook of the country’s macro economy,” Dwi explained.

The completion of two new strata-title office buildings, Equity Tower in the CBD area and MT Haryono Square in East Jakarta, currently rose strata-title office spaces to 951,742 sqm.

With the new supplies from the two newly completed buildings, the occupancy rate of strata-title offices drops by 4.08 percent from the previous quarter to 79.53 percent in the CBD area, but increases by 1.09 percent to 52.24 percent in other areas.

Dwi said that the selling prices of strata-title offices range from Rp 10.8 million to Rp 19.9 million per sqm in the CBD area and from Rp 6.5 million to 14 million per sqm in other areas. She added that the selling prices have grown 2.52 percent from the previous quarter.

She continued that the positive trend in the office market, leasable office and strata-title office, had contributed significantly to the growth of the general property market, which she estimated to hit between 10 and 15 percent in the third quarter. (rdf)