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Opening of new office buildings to further push up vacancy rate in Jakarta
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Real estate consulting company Savills Indonesia predicts about 1.6 million square meters of office space will enter the market in Jakarta between 2020 and 2023. (Shutterstock.com/Creativa Images)
M
ore office space will be available in Jakarta this year as several new buildings enter the market, according to a recent survey by real estate consulting firm Savills Indonesia.
The company’s research and consultancy head, Anton Sitorus, predicted that office vacancy would increase in 2020 to slightly above 25 percent from a rate of 24 percent in 2018 and 2019, as around 650,000 square meters of new space would become available in both the central business district (CBD) and the non-CBD area.
The company also predicted that around 1.6 million sq m of office space will enter the market between 2020 and 2023, mostly in Grade A and Grade B buildings.
“But we are sure that after 2020, office vacancy will not increase,” he said in Jakarta on Wednesday, adding that there will be less new office building supplies in 2021 onward.
Most of the offices in the CBD are Grade A offices (39 percent of the total), which is also the grade with the most unoccupied space with a vacancy rate of about 30 percent.
Anton said that the CBD area had seen an abundance of office space supply last year with 262,400 sq m of working space completed, bringing the total office space to around 6.6 million sq m.
The added area partly came from the completion of five new buildings, namely Sequis Tower, Sudirman 7.8, Millennium Centennial, Social Security Tower and Menara Binakarsa.
