MARKET REPORT

Commercial Real Estate 2H

January - December 2021
 MARKET REPORT
Commercial Real Estate 2H
January - December 2021

CBD Area

After going through 2 years of COVID-19 pandemic, most economic activities have finally
returned to almost 100%. Demand has recovered at the end of 2021, yet the new variant of
COVID-19 (omicron) raises uncertainty whether demand growth will continue to increase in the
commercial property sector.

In 2020 the occupancy rate closed at 73%, however in 2021 it fell to an all time low at 71% (YoY).
The decrease in the occupancy rate in the CBD area was 2.3% (YoY) or 4.8% (YoY) when compared
to the occupancy rate in 2019 (pre COVID-19).

This decline is also predicted to continue until 2022, considering the demand which is still in the
recovery stage and the large supply (335,189 sqm) which will be completed in 2022. 2023
onwards is believed to be the beginning of a shift from tenant's market to landlord's market. This
is due to the improving economic conditions and dwindling supply growth caused by the fact
that most of the supply has been completed and a number of buildings being postponed due to
excess building supply.

Jakarta Office Supply & Demand (CBD)

8.000.000 100.00%

6.000.000 90.00%

4.000.000 80.00%

2.000.000 70.00%

- 60.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
(Projected) (Projected) (Projected) (Projected)

Accumulative Supply Accumulative Demand Occupancy

Page 01 | www.SewaKantorCBD.com
1. Supply

Trinity Tower is the only building that is completed in 1H 2021 adding a supply of 76,340 sqm to
the CBD Area, totaling to accumulated supply of almost 6.7 million sqm by the end of 2021. 2021
supply growth is 1.15% (YoY) increase which represents an all time low in supply increase.

The pandemic also delayed a number of buildings' construction such as Thamrin Nine
(Autograph Tower and Luminary Tower), T Tower, Mori Building, Office One, BRI Tower, and
St. Regis Office Tower which will be completed in 2022 adding to a total supply of 335,189 sqm.
It is believed that the construction of office buildings will start to decline after 2023, considering
the amount of supply that will be completed in the CBD area in 2023-2025 is only 132,470 sqm.

17.2% Projected Office Distribution

18.5% 2022 - 2025 (CBD Area)
11.6% Thamrin 257,000 Sqm

Sudirman 90,000 Sqm

Gatot Subroto 84,000 Sqm

52.8%
Kuningan 56,000 Sqm

52.8% of the projected supply is in Thamrin from 2022 to 2025

2. Demand

Accumulative demand in the CBD area in 2021 dropped drastically to an all time lowest where the
acumulative demand was -2.05% from 0.96% in 2020.

The decline above is mostly contributed by companies that adopt the Work From Home (WFH)
system, making companies reconsider their office space efficiency (number of employees
working in the office). Several divisions (technology, design, sales) are assigned to work mobile
and come to the office occasionally only if required. Government Regulation (PPKM level 3 and
level 4) in the middle of the year is also one of the reasons why many companies are still adopting
a wait and see mindset in 2021.

At the end of 2021 due to the price war between landlords, it can be seen that there are market
movements that occur as shown by the number of companies who took the opportunity to
upgrade their office from Grade C to Grade B and Grade B to Grade A or Premium. The demand
varies from technology, financial to insurance sectors.

Page 02 | www.SewaKantorCBD.com
 New on the Market
In 2021 CBD

Trinity Tower
Completed in : 2021 1H
Developed by : PT. Windas Development
Leasable Area (in sqm) : 76,340
Total Floors : 57
Number of Lifts : Low Zone Lift = 5
Mid Zone Lifts = 5
High Zone Lifts = 6
Executive Lifts = 1
Parking Lift = 3
Service Lifts = 1
Asking Rent (in IDR/sqm) : Rp.300,000/sqm/month
Service Charge (in IDR/sqm) : Rp.110,000/sqm/month
Address : Jl. HR Rasuna Said No. 6,
Jakarta Selatan

Page 03 | www.SewaKantorCBD.com
 Non-CBD Area

The COVID-19 pandemic impact can still be seen on the occupancy rate in the Non-CBD area. By
the end of December 2021, the occupancy rate had fallen further to 73%, which is a decrease of
approximately 0.67% compared to 2020 and 5.7% compared to 2019. The decline continues the
downward trend from 2017, but an increase can be expected in 2023 to 2025.

Jakarta Office Supply & Demand (Non-CBD)

5.000.000 100.00%

4.000.000
90.00%

3.000.000

80.00%

2.000.000

70.00%
1.000.000

- 60.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
(Projected) (Projected) (Projected) (Projected)

Accumulative Supply Accumulative Demand Occupancy

1. Supply

There are two completed projects in 2H 2021 within the Non-CBD area with a total area of 46,994
sqm, Wisma Barito Pacific II (25,994 sqm) and Propan Tower (21,000 sqm) in the West Jakarta area.
The two buildings increase the total accumulative supply of Non-CBD area to 3.7 million sqm,
closing the year with a 1.29% increase in supply compared to 2020.

Several buildings such as Pondok Indah Office Tower 5, One Belpark Office, MTH 27 Office Suite,
Owner Suite by Dharmawangsa, Sanggala Tower and Maritime Tower is expected to be
operational by 1H 2022 adding a total supply of 143,951 sqm for non-CBD area.

Page 04 | www.SewaKantorCBD.com
 26.8% Projected Office Distribution
2022 - 2025 (Non-CBD Area)
7.8% TB Simatupang 137,000 Sqm
30.1%
Central Jakarta 117,000 Sqm

South Jakarta 103,000 Sqm

35.3%
North Jakarta 30,000 Sqm

35.3% of the projected supply is in TB Simatupang 2022-2025

2. Demand

The accumulative demand in Non-CBD area increased by 9,900 sqm (0.37% (YoY)) in 2021
compared to 2020. The demand for office space rental is stable during the second half of 2021,
however most demands are generated mainly from the South Jakarta area.

Grade A and Grade B buildings in the Non-CBD area offer very competitive rental rates, especially
for tenants with notable brands or tenants with large office size requirements. The decline in
prices is estimated to continue until 2023 due to future supply and will then increase again in line
with the lack of supply in 2024-2025.

Page 05 | www.SewaKantorCBD.com
 New on the Market
In 2021 Non-CBD
Wisma Barito Pacific II
Completed in : 2021 1H
Developed by : PT Griya Idola
Leasable Area (in sqm) : 25,994
Total Floors : 22
Number of Lifts : Low Zone Lift = 4
High Zone Lifts = 5
Executive Lifts = 1
Parking Lift = 2
Service Lifts = 1
Helipad Lift = 1
Asking Rent (in IDR/sqm) : Rp.240,000/sqm/month
Service Charge (in IDR/sqm) : Rp.80,000/sqm/month
Address : Jl. Letnan Jendral
S. Parman Kav. 60,
Jakarta Barat

Propan Tower
Completed in : 2021 1H
Developed by : PT. Ciputra Development Tbk
Leasable Area (in sqm) : 21,000
Total Floors : 14
Number of Lifts : To be confirmed
Asking Rent (in IDR/sqm) : To be confirmed
Service Charge (in IDR/sqm) : To be confirmed
Address : Jl. Lingkar Luar Barat No. 101,
Jakarta Barat

Page 06 | www.SewaKantorCBD.com
 CLOSING
SUMMARY

Supply Side Demand Side

The number of new buildings in the property Economic activity in Indonesia in 2021 has
sector continues to increase, despite experi- begun to improve, this is indicated by an
encing delays in the development process. increase in GDP Growth of 3.69% in 2021
The delay resulted in a reduction of new compared to 2020 with a negative GDP
supply in 2021. growth of -2.07%. Demand for office space
began to increase drastically at the end of
The new supply in 2H 2021 within the CBD 2021, it is predicted that many transactions
area has increased by 76,340 sqm and the will occur in 2022.
Non-CBD area has increased by 46,994 sqm.
As a result, the current total accumulative The increasing number of demand is not only
supply in the CBD and Non-CBD area is 6.7 triggered by the improving economic
million sqm and 3.7 million sqm, respectively. situation, but also from the Landlord's price
war situation as numerous companies realize
The delay in the supply development process that this tenant's market will soon end.
has caused the supply for office buildings to
reach its peak in 2022 with an additional
335,189 sqm in the CBD area and 143,951 sqm
in the Non-CBD area.

Prices
Prices for office space in the CBD and Non-CBD area have decreased in line with the decline in
demand for office space. Landlords are competing to lower the rental price for office space.

The asking rental price in the CBD area is between Rp. 125,000 – Rp. 200,000 per sqm per month and
the asking rental price in the Non-CBD area is between Rp. 100,000 – Rp. 150,000 per sqm per month.
The transacted rental price in 2021, was approximately Rp. 100,000 - Rp. 175,000 in the CBD area and
Rp. 50,000 - Rp. 100,000 in the Non-CBD area

Page 07 | www.SewaKantorCBD.com
 Location Complex / Building

Setiabudi (12+) Type Building (e.g. Wisma 46, Search

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 Testimonials
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Companies We’ve
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Jaka rta T imu r - 13 2 2 0

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