Research &
Forecast Report
3Q 2014
Supply in the CBD
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Existing Supply
2018F
2017F
2016F
2015F
2014F
2014YTD
2013
2012
2011
2010
0
2009
OFFICE SECTOR
Leased Office
7,000,000
2008
- Ferry Salanto, Associate Director | Research
CBD Office Cumulative Supply
sq m
“This quarter is a challenging period for the office market. The
number of office space inquiries weakened and the downswing
is highlighted by the declining occupancy rate in the CBD of 1%
to 95.4% YoY. The average asking base rental rate for Grade A
and Premium class US dollar denominated buildings also
dropped modestly by 1.7% QoQ to USD42.84/sq m/month.”
Accelerating success.
Annual Supply
Source: Colliers International Indonesia - Research
The CBD is anticipating a huge additional supply in the five
years ahead looking at the construction progress of future office
buildings. It appears that at least three office buildings will be
completed as scheduled and bring 187,805 sq m of additional
supply at the end of 2014.
There will also be a redevelopment project in Jalan MH Thamrin.
An existing shopping center will be demolished beginning in
late 2014. With an approved high plot ratio for this site, a new
landlord will develop a high-rise office building cum apartment
towers with a planned completion in 2019.
As of 3Q 2014, the cumulative supply of office space in the CBD
was 4.78 million sq m. Despite no new supply during the quarter,
demolition of the Graha Surya Internusa office building for
redevelopment has been started and this reduces the cumulative
supply. Later, there will be a new office building of around
100,000 sq m on this site.
The new plot ratio policy for certain business areas set out by
the DKI Jakarta Government has urged developers to consider
replacing old buildings with taller and more modern buildings
to maximize the allowable building size. In the years ahead, the
CBD will see several more high-rise office buildings.
Thamrin Nine is projected to be the tallest office building in
Jakarta in the future and will have an area of around 100,000 sq
m on 70 floors, and will be taller than the tallest existing office
buildings in Jakarta, i.e. Menara BCA (52 floors) and Wisma
46 (50 floors). Other high-rise office buildings are expected in
Jakarta, namely Pertamina Tower and Signature Tower, which
are currently in planning stages.
Although construction activity keeps progressing, several future
office buildings have confirmed that they will reschedule their
completions as of 3Q 2014. However, in addition, by the end of
2014, the construction work on future office buildings due for
completion in 2015 - 2018 is still showing progress. Based on
numbers, 29 of 37 future office buildings or 83.2% of the 2.36
million sq m additional supply expected from 2015 to 2018 are
under construction.
Sudirman still leads as the major contributor of new office
buildings in the CBD. The total future supply in the CBD until
2018 will be 2.51 million sq m, and 41.1% will be in Sudirman.
Gatot Subroto and Mega Kuningan will also grow by contributing
21.1 and 13.1%, respectively, of the total future supply in 2015 2018.
Annual
CBD
Future
Based on Sub Market
Office
Distribution
Satrio
Gatot Subroto
Mega Kuningan
Rasuna Said
Sudirman
Thamrin
0
300,000
600,000
900,000
1,200,000
sq m
2014F
2015F
2016F
2017F
2018F
Supply in the Outside CBD and
TB Simatupang
The amount of future office space will also increase in the outside
CBD area. Ciputra Group will soon develop a superblock called
Ciputra International on 7.4 hectares of land near the Outer
Ring Road in West Jakarta. This group will also develop an office
park in Kemayoran, Central Jakarta that will sit on 1.8 ha of their
land bank and consist of two office towers connected by a retail
arcade.
Besides Ciputra, Pondok Indah, Agung Podomoro Land (APL)
and Lippo Group are among the big developers with office
projects under construction in West Jakarta. Pondok Indah is
developing Puri Financial Tower and APL is developing their
latest office building project within the Podomoro City complex,
SOHO Capital. Lippo is also developing an office building within
the St. Moritz complex in Puri Indah. In addition to Puri, Lippo
will also add to their portfolio by developing an office tower
within Lippo Holland Village in Cempaka Putih, Central Jakarta.
Additionally, an office building located within the Gallery West
complex in Kebun Jeruk, West Jakarta will also be integrated with
apartments and a hotel. All of the office buildings mentioned
above are projected be completed in 2015 and 2016.
South Jakarta, especially TB Simatupang remains the most
desirable area. Three new office towers by Intiland Group at a
mixed-use development called South Quarter are projected to
begin operations in 2015 in TB Simatupang. Then, after Tower 1
is in operation, Sumber Mesin Raya, the owner, will also launch
The Manhattan Square Tower 2. This office building is projected
to begin operations in 2017. The other projected office building
in TB Simatupang is The Sima, located within a residential
development called Izzara. With 60,000 sq m of floor space, this
office building is scheduled to be completed in 2017. Another
two office buildings, Cibis Tower and Arkadia Tower G, were also
launched recently as additional new supply in TB Simatupang.
These two office buildings will commence construction in late
2014. With the projects mentioned above, the total future supply
in the outside CBD is expected to reach 1.27 million sq m from
2014 to 2018.
Source: Colliers International Indonesia - Research
Based on construction progress, 58.1% of the total space projected
to begin operations in 2015 - 2018 is now under construction.
As mentioned above, South and West Jakarta will contribute
51.8 and 26.6%, respectively, more than the other areas. TB
Simatupang will contribute 48.1% of the total future supply in the
outside CBD during 2014 - 2018. The 631,221 sq m of new supply
in TB Simatupang by 2018 will represent 92.9% of the total future
supply in South Jakarta.
2
TB Simatupang Office Cumulative Supply
7,000,000
6,000,000
6,000,000
5,000,000
5,000,000
4,000,000
4,000,000
Existing Supply
Annual Supply
Existing Supply
2018F
2017F
2016F
2015F
2014F
2014YTD
2013
2012
2008
2018F
2017F
2016F
2015F
2014F
2014YTD
0
2013
0
2012
1,000,000
2011
1,000,000
2010
2,000,000
2009
2,000,000
2011
3,000,000
2010
3,000,000
2009
sq m
7,000,000
2008
sq m
Outside CBD Office Cumulative Supply
Annual Supply
Source: Colliers International Indonesia - Research
Source: Colliers International Indonesia - Research
Annual Outside CBD Future Office Distribution
Based on Region
Annual Future Office Distribution in TB Simatupang
and Outside CBD exclude TB Simatupang
West Jakarta
Outside CBD exclude TB
Simatupang
East Jakarta
North Jakarta
South Jakarta
TB Simatupang
Central Jakarta
0
150,000
300,000
450,000
600,000
0
750,000
150,000 300,000 450,000 600,000 750,000
sq m
sq m
2014F
2015F
2016F
2017F
2018F
Source: Colliers International Indonesia - Research
2014F
2016F
Source: Colliers International Indonesia - Research
In 3Q 2014, The Manhattan Square and Palma Tower, both of
which are located in TB Simatupang in the outside CBD, were
ready for tenant occupation. These office buildings brought
59,859 sq m of additional supply and brought the cumulative
supply in the outside CBD to 2.39 million sq m.
With the additional office space, the cumulative supply in TB
Simatupang was 536,806 sq m as of 3Q 2014. In the remaining
quarter of 2014, the outside CBD will see another 131,826 sq m of
office space, of which 70.4% will be in TB Simatupang.
3
2015F
Research & Forecast Report | 3Q 2014 | Office | Colliers International
2017F
2018F
Some Construction Progress of Future Office Buildings in 2014 - 2018
Office Tower at District 8
Sequis Tower 2
Office Tower at St Moritz
Source: Colliers International Indonesia - Research
Future Large Office Buildings of More Than 90,000 sq m
Sahid Sudirman
Capital Palace
Centennial Tower
Treasury Tower
138,500 sq m
90,511 sq m
100,000 sq m
139,000 sq m
52 storeys
46 storeys
48 storeys
55 storeys
2015
2016
2016
2017
Thamrin Nine
Astra Tower
PCPD Tower
SSI Tower
97,500 sq m
100,000 sq m
96,000 sq m
100,000 sq m
70 storeys
50 storeys
40 storeys
40 storeys
2017
2017
2017
2018
Source: several sources
4
Research & Forecast Report | 3Q 2014 | Office | Colliers International
New Supply Pipeline
projected
completion
Office building projects name
location
SGA
Marketing scheme
status development
CBD
2014
Sinarmas MSIG
Sudirman
75,000 For Lease
Under construction
2014
The Noble House Office Tower
Mega Kuningan
45,000
For Lease
Under construction
2014
Gran Rubina Tower 1
Rasuna Said
For Sale
Under construction
2015
Ciputra World Jakarta 2
Satrio
70,000 For Lease & Sale
Under construction
2015
International Financial Center 2
Sudirman
50,000
For Lease
Under construction
2015
AIA Center (Menara Selaras)
Sudirman
47,000 For Lease
Under construction
2015
Cemindo Tower
Rasuna Said
60,995
For Lease
Under construction
2015
Sahid Sudirman Center
Sudirman
For Lease & Sale
Under construction
2015
Telkom Landmark Tower II
Gatot Subroto
65,000
For Lease
Under construction
2015
Bank Muamalat Tower (Satrio Square)
Satrio
24,600
For Lease
Under construction
2015
BTPN Tower (Bahana Office Tower)
Mega Kuningan
50,000
For Lease
Under construction
2015
Wisma Mulia 2
Gatot Subroto
65,000
For Lease
Under construction
2015
Convergence
Rasuna Said
36,367
For Lease & Sale
Under construction
2016
Menara Pertiwi
Mega Kuningan
41,456
For Sale
Under construction
2016
Mangkuluhur Tower
Gatot Subroto
53,000 For Lease & Sale
Under construction
2016
Capital Palace (Office Tower @ St. Regis)
Gatot Subroto
2016
Menara Palma 2
Rasuna Said
2016
Centennial Tower
Gatot Subroto
2016
Satrio Tower
Satrio
31,604
For Lease
Under construction
31,438
138,500
90,511
For Lease
Under construction
50,000 For Lease
Under construction
100,000 For Sale
Under construction
2016
The Tower
Gatot Subroto
56,492
For Sale
Under construction
2016
Lippo Thamrin Office Tower
Thamrin
16,500
For Sale
Under construction
24,000 For Sale
Under construction
2016
T Tower (BJB Tower)
Gatot Subroto
2017
Prosperity Tower @ District 8
Sudirman
2017
Gran Rubina Tower 2
Rasuna Said
2017
World Capital Tower
2017
Sequis Life Tower 2
2017
2017
71,545
For Sale
Under construction
32,000 For Sale
Under construction
Mega Kuningan
72,000 For Sale
In planning
Sudirman
80,000 For Lease
Under construction
Treasury Tower @ District 8
Sudirman
139,000 For Sale
Under construction
Gayanti City
Gatot Subroto
25,000 For Lease
In planning
2017
Thamrin Nine
Thamrin
97,500 For Lease
Under construction
2017
Sopo Del Tower A
Mega Kuningan
80,000 For Lease & Sale
Under construction
2017
Sopo Del Tower B
Mega Kuningan
40,000 For Lease
Under construction
2017
Sudirman 7.8 (ex Nugra Santana)
Sudirman
52,000 For Sale
Under construction
2018
SSI Tower (Graha Surya Intenusa)
Rasuna Said
100,000 For Lease
Under construction
2018
Mangkuluhur Tower II
Gatot Subroto
2018
Tower Two at The City Center
Sudirman
39,204 For Lease
Under construction
2018
World Trade Center III
Sudirman
70,000 For Lease
Under construction
2018
Icon Tower
Sudirman
72,500
Under construction
2018
Tower 2 @ Ciputra World Jakarta 1
Satrio
2018
Astra Tower
Sudirman
2018
PCPD Tower
Sudirman
50,000 For Lease
For Lease
70,000 For Lease & Sale
100,000 For Lease
96,000
For Lease
In planning
Under construction
In planning
Under construction
continued
5
Research & Forecast Report | 3Q 2014 | Office | Colliers International
projected
completion
Office building projects name
location
SGA
Marketing scheme
status development
continuation
outside cbd exclude tb simatupang
2014
GP Plaza
Slipi
12,204
2014
Wisma 77 Tower 2
Slipi
24,200 For Lease
2014
Emerald Tower
Kelapa Gading
2015
Menara Sentraya
Blok M
2015
The St. Moritz Office Tower
2015
The Suites
2015
2015
2015
2,644
For Sale
For Lease
Under construction
Under construction
Under construction
52,072 For Sale
Under construction
Puri Indah
19,500
For Sale
Under construction
Pantai Indah Kapuk
13,200 For Sale
Under construction
MNC Tower II
Kebon Sirih
20,000 For Lease
Under construction
Soho Capital
Slipi
36,000 For Sale
Under construction
Altira
Sunter
40,000 For Sale
Under construction
2015
Maxima Tower
Kelapa Gading
8,000 For Lease
Under construction
2015
Nariba Office Suites
Mampang
4,200 For Lease
Under construction
2016
Puri Indah Financial Tower
Puri Indah
38,500
2016
Gallery West
Kebun Jeruk
29,000 For Sale
Under construction
2016
Sky 18 Tower
Pasar Minggu
27,500 For Sale
Under construction
2016
Soho Pancoran
Pancoran
30,000 For Sale
Under construction
2016
Jakarta Box Tower
Kebon Sirih
36,000 For Lease
Under construction
In planning
For Sale
In planning
2016
Lippo Tower Holland Village
Cempaka Putih
27,000 For Sale
2016
One Tower
Kemayoran
21,400
For Sale
In planning
2016
BKP Office Tower
Sunter
16,000
For Lease
In planning
2016
Tamansari Parama
Wahid Hasyim
10,800 For Sale
In planning
2017
L'Venue
Pasar Minggu
41,597
In planning
For Sale
2017
Ciputra Business District Kemayoran Tower 1
Kemayoran
40,000 For Sale
In planning
2017
Ciputra Business District Kemayoran Tower 2
Kemayoran
40,000 For Lease
In planning
2017
Ciputra International Puri 1 Phase 1
Puri
15,000
For Lease
In planning
2017
Ciputra International Puri 2 Phase 1
Puri
20,000 For Lease
In planning
2017
Ciputra International Puri 3 Phase 1
Puri
30,000 For Lease
In planning
2018
Kota Kasablanka Office Tower 2
Casablanca
90,000 For Lease
In planning
2018
Ciputra International Puri Phase 2
Puri
15,000
For Lease
In planning
2018
Ciputra International Puri 1 Phase 3
Puri
15,000
For Lease
In planning
2018
Ciputra Internatinal Puri 2 Phase 3
Puri
15,000
For Lease
In planning
2018
Summarecon Tower
Slipi
70,000 For Lease
In planning
39,778
Under construction
tb simatupang
2014
Plaza Oleos
For Lease & Sale
2014
18 Office Park (Cityland Tower)
40,000 For Sale
Under construction
2015
AD Premier
18,900
For Lease
Under construction
2015
Metropolitan Tower
44,000
For Lease & Sale
Under construction
2015
South Quarter Tower 1
40,778
For Sale
Under construction
2015
South Quarter Tower 2
40,778
For Lease
Under construction
40,778
For Lease
Under construction
6,584
For Lease
Under construction
For Lease
Under construction
2015
South Quarter Tower 3
2016
Zuria
2017
Beltway Office Park Tower 4
25,600
2017
The Sima
60,000 For Lease
Under construction
2017
The Manhattan Square Tower 2
39,375
In planning
Source: Colliers International Indonesia - Research
6
Research & Forecast Report | 3Q 2014 | Office | Colliers International
For Lease & Sale
Occupancy
Occupancy Rates in the CBD, Outside the CBD
exclude TB Simatupang and TB Simatupang
100%
98%
96%
94%
92%
Aside from the office buildings above, at least 10 other office
buildings continued to experience increasing vacant space of
more than 2,000 sq m as of 3Q 2014. One office building in Jalan
Sudirman has more than 20,000 sq m of vacant space. As of 3Q
2014, there are also large vacant spaces at an office building in
Mega Kuningan that has been operating since 2013. However, this
office building has secured two major tenants who will occupy
around 10,000 sq m in 2015. These pre-committed tenants come
from financial institution and coal mining companies.
Performance of Premium and Grade A office buildings also
showed a decrease by 1.4% QoQ and recorded occupancy of
95.2% as of 3Q 2014. Previously, Premium and Grade A office
buildings in the CBD maintained high occupancy rates of 97%
throughout 2013 and up to 1Q 2014. A decline in occupancy for
this grade of office building is generally because of high base
rents. The occupancy of several office buildings of these grades
was down QoQ.
90%
88%
86%
84%
82%
80%
2008
CBD
2009
2010
2011
2012
Outside CBD exclude TB Simatupang
2013
2014YTD
TB Simatupang
Source: Colliers International Indonesia - Research
The occupancy rate for office buildings in the CBD showed a
downward trend throughout 2014 YTD. The occupancy rate was
recorded at 96.5% in 2013. New additional supply in the previous
quarter caused the occupancy rate to drop by nearly 1% QoQ.
As of 3Q 2014, occupancy was 95.4%, again showing a decrease
QoQ, albeit moderate.
Almost all sub-markets showed decreasing occupancy. After
acquiring an office building in Gatot Subroto, the new landlord
is planning to sell the whole building and will not extend the
lease contracts of the existing tenants. In a similar case, due to
the change in management, BRI 2, located in Sudirman, has
a sizeable vacant space for owner-occupation (around mid2015) and therefore decided not to extend the lease contracts
of some tenants. The new management has made plans for
major renovations of the M & E systems, like A/C and back-up
generator.
Vacancy Rates in The CBD Based on Sub Markets
20%
Recording the same trend, outside the CBD area saw the
occupancy rate go down by 1.7% QoQ to 93.9% as of 3Q 2014
due to the influx of newly operating office buildings. Central,
West and South Jakarta still have large vacant spaces. With
limited new additional supply in Central Jakarta, vacant spaces
are only found in old office buildings. Conversely, West Jakarta
is quite active in terms of providing additional new supply.
Office buildings that began operations from 2010 to 2014 YTD
contributed around 46% of the total stock in West Jakarta.
Unfortunately, almost 80% of unoccupied space in West Jakarta
is contributed by office buildings that began operations during
those periods. The second biggest office building in Slipi, West
Jakarta still has large vacant spaces on offer because the concept
was changed from SOHO to a standard office building.
In South Jakarta, new office space also caused occupancy to go
down 2.5% to 89.9% as of 3Q 2014. Office buildings located in
Jalan Casablanca currently have large vacant spaces. In addition,
decreasing performance in TB Simatupang also caused the
occupancy to drop. Continual additional supply in each quarter
of 2014 YTD has caused the occupancy rate in TB Simatupang
to continuously drop. After slumping by 3.6% in the previous
quarter, the occupancy rate in TB Simatupang went down
drastically by 7.1% to 86.1% as of 3Q 2014.
Abundant supply in 2014 and 2015 will pose a big challenge for
occupancy in the CBD and areas outside of it. As of 3Q 2014, the
committed absorption for office buildings that are expected to
be completed in 2014 and 2015 in the CBD reached 40 and 44%,
respectively. The committed absorption outside the CBD has
also reached 40% for office buildings in 2014 and 2015. Although
TB Simatupang is experiencing decreasing occupancy, the
committed absorption for office buildings in 2014 has reached
77%. Furthermore, as of 3Q 2014, TB Simatupang has attained
43% of committed absorption for office buildings in 2015.
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2008
2009
Thamrin
Mega Kuningan
Overall
2010
2011
Sudirman
Gatot Subroto
2012
2013
2014YTD
Rasuna Said
Satrio
Some tenants have committed to occupy large spaces and
receive naming rights to replace the previous building name.
At least two office buildings in Mega Kuningan will be renamed
with the occupation of a new major tenant.
Source: Colliers International Indonesia - Research
7
Research & Forecast Report | 2Q 2014 | Office | Colliers International
Pre-Committed Absorption of Annual Future Offices
Supply in the CBD
2018F
Pre-Committed Absorption of Annual Future Offices
Supply in TB Simatupang
2017F
2017F
2016F
2016F
2015F
2015F
2014F
2014F
0
150,000
300,000
450,000
Space Absorbed
600,000
Space Unabsorbed
750,000
0
sq m
150,000
300,000
450,000
Space Absorbed
600,000
Space Unabsorbed
Source: Colliers International Indonesia - Research
Source: Colliers International Indonesia - Research
Pre-Committed Absorption of Annual Future Offices
Supply in the Outside CBD exclude TB Simatupang
Asking Base Rent
750,000
sq m
Average Asking Base Rent in the CBD
300,000
450,000
Space Absorbed
600,000
Space Unabsorbed
$25.00
IDR 236,000
$20.00
IDR 177,000
$15.00
IDR 118,000
$10.00
IDR 59,000
$5.00
IDR 0
$0.00
750,000
sq m
IDR
Source: Colliers International Indonesia - Research
2014YTD
150,000
IDR 295,000
2008
0
$30.00
2013
2014F
$35.00
2012
2015F
IDR 413,000
IDR 354,000
2011
2016F
$40.00
2010
2017F
IDR 472,000
2009
2018F
US$
Source: Colliers International Indonesia - Research
Although still on a rising trend, the QoQ growth of rental rates of
office buildings charging in rupiah slowed in the CBD. Even in
2014 YTD, rent growth saw continuous weakening. As of 3Q 2014,
the average asking base rental rate of office buildings charging
in rupiah in the CBD was IDR253,513/sq m/month, exhibiting
growth of less than 1% QoQ. This rent growth was far lower than
that in previous quarters.
8
Research & Forecast Report | 2Q 2014 | Office | Colliers International
IDR 250,000
IDR 200,000
IDR 150,000
IDR 100,000
IDR 50,000
IDR 590,000
$50.00
IDR 472,000
$40.00
Service Charge
IDR 354,000
$30.00
Average Service Charge Cost
IDR 236,000
$20.00
IDR 118,000
$10.00
Source: Colliers International Indonesia - Research
Outside the CBD, the average rental rate of office buildings
charging in rupiah was IDR166,748/sq m/month, whereas it
was USD22.66/sq m/month for office buildings charging in US
dollars as of 3Q 2014. These rental rates grew slowly QoQ. Based
on area, we divided areas outside the CBD into TB Simatupang
and areas outside the CBD, excluding TB Simatupang. As of
3Q 2014, the rental rate for office buildings outside the CBD
(excluding TB Simatupang) was IDR155,402/sq m/month and
USD18.23/sq m/month for those charging in US dollars.
Meanwhile, growth in the TB Simatupang rental rate was
moderate as of 3Q 2014 for both currencies. Office buildings
charging in rupiah are currently at IDR157,381/sq m/month and
USD21.31/sq m/month for those charging in US dollars.
2013
IDR 40,000
IDR 30,000
IDR 20,000
IDR 10,000
IDR 0
CBD
2014YTD
US$
IDR 50,000
2013
IDR
Grade C
2012
Grade B
IDR 60,000
2011
Grade A
IDR 70,000
2010
Premium
IDR 80,000
2009
$0.00
TB Simatupang (combine)
Source: Colliers International Indonesia - Research
2008
IDR 0
Outside CBD (combine)
2014YTD
$60.00
2012
2010
IDR 708,000
2011
IDR 0
2009
Average Asking Base Rent (Based on Available
Space) in the CBD by Grade
Average Asking Base Rent in the Outside CBD
2008
A slightly different trend was seen at office buildings charging in
US dollars. The rent growth showed a similar weakening trend
during the two early quarters in 2014. However, the overall rental
rate still grew by 2% QoQ which brought them to USD37.03/sq
m/month as of 3Q 2014 after some office buildings in the Mulia
Group made an upward adjustment. Several office buildings
charging in US dollars have lowered the rental rates as of 3Q 2014.
Most of these office buildings are included in the Premium and
Grade A category. As of 3Q 2014, the rental rates for Premium
and Grade A office buildings dropped by 1.7% QoQ to USD42.84/
sq m/month.
Outside CBD
Source: Colliers International Indonesia - Research
After a rise in the electricity tariff, the fuel hike that is expected
at the end of 2014 will likely raise service charges in 2015. As of
2014 YTD, the service charge of office buildings charging in US
dollars and rupiah showed different trends. The service charge
of office buildings charging in rupiah was IDR65,764/sq m/
month as of 3Q 2014 reflecting growth of 8.3% QoQ; however,
this still suggests that about 45% of office buildings have yet to
adjust their service charges.
On the contrary, office buildings charging in US dollars
demonstrated a declining trend QoQ. After experiencing relative
stability in the previous quarters, service charges dropped by
8.2% to USD6.21/sq m/month as of 3Q 2014. Service charges at a
complex office building in Sudirman have decreased QoQ.
9
Research & Forecast Report | 3Q 2014 | Office | Colliers International
In outside the CBD, the service charge was IDR46,152/sq m/
month for office buildings charging in rupiah and showed
positive growth of 4% in 2014 YTD. The service charge for office
buildings charging in US dollars was down 3.7% in the same
period and at USD5.24/sq m/month as of 3Q 2014.
The service charge for office buildings charging in rupiah in TB
Simatupang was the highest at IDR55,577/sq m/month. Several
office buildings charging in US dollars still maintained their
service charge at USD3.00 - 5.00/sq m/month. Therefore, the
service charge for buildings charging in US dollars was relatively
flat at USD4.89/sq m/month as of 3Q 2014.
Strata-title Office
The take-up level of offices for sale outside the CBD also showed
positive performance. The take-up rate was above 90% of the
466,126 sq m of existing cumulative supply of offices for sale as
of 3Q 2014. Outside the CBD, 566,351 sq m of additional space
will be for sale until 2018. However, the market will respond
optimistically because 40% of the projected supply has been
absorbed as of 3Q 2014.
Office buildings for sale in TB Simatupang continue to show
improving performance. As of 3Q 2014, the only remaining
spaces are at office buildings that began operating in the
previous quarter. Meanwhile, 72% of the total future supply of
offices recorded for sale in TB Simatupang from 2014 to 2018 has
been absorbed.
Based on available space, the asking price for strata-title offices
in the CBD was IDR51.5 million psm, exhibiting growth of 22%
YTD. Outside the CBD, excluding TB Simatupang, the asking
price was IDR26.5 million/sq m, whereas in TB Simatupang, it
was IDR31.1 million/sq m.
Average Strata-Title Office Price in Jakarta
IDR 60,000,000
Pre-Committed Absorption of Annual Supply of
Strata-Title Office
IDR 50,000,000
IDR 40,000,000
2014YTD
IDR 30,000,000
2013
IDR 20,000,000
2012
IDR 10,000,000
2011
CBD
Outside CBD exclude TB Simatupang
2014YTD
2013
2012
2011
2010
2009
2008
IDR 0
TB Simatupang
2010
2009
2008
Source: Colliers International Indonesia - Research
0
The sales of strata-title offices in the CBD will seemingly focus
more on future supply due to very limited vacant space at existing
buildings. As of 3Q 2014, with the take-up rate at 99%, only less
than 5,000 sq m of space remains available for strata-title offices
in the CBD.
250,000
500,000
Space Absorbed
Source: Colliers International Indonesia - Research
For the rest of 2014 until 2018, it is expected that 1.13 million sq
m of additional office supply will be up for sale in the CBD. Gran
Rubina seems to be right on schedule in meeting its completion
date of late 2014. On the demand side, absorption of strata-title
offices is forecast to be strong. Office buildings that will begin
operations in 2014 and 2015 have achieved high commitment
levels at 92 and 82%, respectively. Overall, 40% of the total future
supply up to 2018 has been absorbed.
10 Research & Forecast Report | 3Q 2014 | Office | Colliers International
750,000
Space Unabsorbed
1,000,000
sq m
11 Research & Forecast Report | 3Q 2014 | Colliers International
485 offices in
63 countries on
6 continents
Primary Authors:
Ferry Salanto
Associate Director | Jakarta
62 21 521 1400 ext 134
[email protected]
United States: 146
Canada: 44
Latin America: 25
Asia: 38
ANZ: 148
EMEA: 84
$2.1
billion in
annual revenue
Colliers International Indonesia
World Trade Centre 10th & 14th floor
Jalan Jenderal Sudirman Kav. 29 - 31
Jakarta 12920
Indonesia
TEL 62 21 521 1400
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billion square feet
under management
15,800
professionals
and staff
About Colliers International
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