The amount of new office space built in Jakarta’s central business district this year fell 12 percent from 2008 but is expected to rebound next year, according to a report from property consultant Cushman & Wakefield.
Demand is also expected to rise in line with the economic recovery, as banking and finance companies look to re-enter the market after a sluggish 2009, according to the report, which was released last week.
Dharmesti Sindhunata, associate director of marketing and communications at Cushman & Wakefield Indonesia, said the net available supply of office space in the central business district was 247,000 square meters in 2009, down from 280,000 square meters in 2008.
Next year, available supply is predicted to rebound to 260,000 square meters.
The total supply of office space had increased to 3.93 million meters currently, with the completion of the 23,000-square-meter Menara Bidakara 2 building on Jl Gatot Subroto.
The Bakrie Tower in Central Jakarta is expected to add 60,000 square meters when it opens during the first quarter.
Average gross rentals fell 0.7 percent in the fourth quarter compared to the previous quarter, to Rp 140,900 ($14.94) per square meter per month.
When measured in US dollars the average gross rental increased by 2 percent over the quarter due to the strengthening rupiah. Average gross rentals were down by 2.7 percent from a year ago, although up by 13 percent when measured in US dollars.
Cushman & Wakefield reported that transaction activity in the strata title office market slowed during 2009.
Asking prices for CBD strata title office space remained stable during the fourth quarter, with higher-quality space being offered for between $2,000 and $2,300 per square meter and lower-quality space being offered at around $1,380 a square meter.