JAKARTA - Occupancy rate of office space in 2020 is still slowing down in Central Business District (CBD), Jakarta as in 2019, as mentioned by Yunus Karim, the Assistant Manager of Jones Lang LaSalle, in Jakarta (29/1).

He said that the demand for office space in Jakarta remained high in the last 10 years, but with the large buildings supply that had been established would give some pressure on the occupancy rate at about 75% around CBD area. "We estimate that there will be an additional supply of 520 thousand m2, which will be complete in the CBD area by 2020, which will keep the occupancy rate depressed in 2020, and begin to experience stabilization in the coming years. Whereas for grade A rental prices in 2019 have decreased by 4%, and we estimate that this decline will still occur in 2020, and then get stable in the years after," he said.

In 2019, rental prices of Grade A in 2019 will decline by 4% and this downward trend will still occur this year. For non-CBD offices, the demand level of grade B in areas outside CBD is within the range of 132,000 m2 over the past year, exceeding the average absorption in the last 10 years. (LK/W)