Changing dynamics in Jakarta’s strata-title office market revealed

Some buildings have made slight corrections in their asking prices.

Following the period of stagnation in H1 2023, Colliers said in a report that the strata-title office market in Jakarta has begun to show signs of change, particularly in terms of asking prices. 

“Within the CBD, some buildings have made slight corrections to their asking prices, now recorded at IDR55.3 million per square metre. Conversely, in areas outside the CBD, some transactions have been logged, bolstering landlord confidence and driving an 8% QOQ increase in the average asking price to IDR46.0 million per square metre,” the report said.

Here’s more from Colliers:

The forthcoming completion and operation of another strata building in the next quarter is expected to bring about further changes in the CBD area, especially due to the premium grade of this office building. Consequently, it is anticipated that the asking price for this premium-grade building will be considerably higher compared to the prevailing market average. 

In Jakarta, several office strata-title buildings are nearing completion. This influx of additional supply will impact the calculation of average asking prices, especially given the limited available space in the CBD area. Furthermore, the available office spaces in Jakarta are currently dominated by premium class and grade A office buildings for sale, which typically command higher asking selling prices compared to the current market average.