Jakarta office occupancy rate to stabilise at 65% by year-end

Rents are expected to decline at a slower rate.

With no expected new office completions in Jakarta in the next 12 months, JLL said enquiries are anticipated to remain healthy with rents continuing to decline at a slower rate.

Flight to quality and downsizing will remain the main themes. JLL expects the occupancy rate to stabilise at around 65% by end-2024.

Here’s more from JLL:

A total positive net demand of around 21,325 sqm was captured, reflecting an increase of approximately 13.7% compared to the previous quarter. The financial services sector showed the most activity, followed by the technology sector.

Continuing the recent trend, another flexible space has been opened in a Grade A building, occupying approximately 2,300 sqm. The current common expansion strategy involves joint operations with the landlord.

No new developments are expected in the remainder of the year

No new supply was delivered in Q2 2024. Luminary Tower was completed in the previous quarter, and it is expected to be the last project completed in the full year of 2024.

The vacancy rate dipped slightly below 36% as a result of the relatively significant positive net demand recorded in Q2 2024. The absence of new supply has further contributed to the improvement in occupancy.

Rents continue to decline, but at a slower rate

Grade A net rents were recorded slightly below IDR 200,000 per square metre per month. Rents continued to decline by around 1.2% quarterly and 6.5% annually in Q2 2024.

Landlords with healthy occupancy rates in preferred locations have begun to maintain their rents, while landlords with lower occupancy rates are still expected to offer competitive rents.