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Jakarta Post

Office space occupancy to drop further in 2021: Colliers

  • Riza Roidila Mufti 

    Jakarta

Jakarta   /   Thu, July 16 2020   /  01:00 am
Starting up: The Jakarta Smart City Hive (JSCHive) coworking space in Karet Kuningan, South Jakarta, was established by the city administration in collaboration with EV Hive coworking space to support the development of digital start-ups. (The Jakarta Post/Seto Wardhana)

Office occupancy rates in Indonesia’s major cities are expected to plunge further next year as supply increases at a time when demand remains weak amid the coronavirus pandemic. According to a projection by property consultancy Colliers International, office occupancy will plunge to just 78 percent in the central business districts (CBD) of Jakarta and Surabaya and to 79 percent in non-CBD areas, the lowest rates in years. This compares with 83.5 percent in the first quarter of this year for CBD and 84 percent for non-CBD areas. “This year is indeed a tough year for the office sector,” Colliers senior associate director of research Ferry Salanto said. “With the abnormal current market conditions and the large supply that is almost the same as last year’s, and given the fact that in the next year supply will be higher, occupancy will be decreasing,&rdqu...