"The Jakarta property market is now awaiting a recovery momentum, at least several months after the election," said Ferry Salanto, head of Research at Colliers International Indonesia, in a release received in Jakarta, Thursday.
According to him, despite experiencing stagnation, the property market in Jakarta still cannot match existing markets in other developing countries.
Salanto noted that a number of financial technology companies are now starting to expand their business by looking for new and larger workspaces.
Earlier, Colliers International stated that the condition of offices in the Jakarta area was still stagnant due to the large supply of new offices in the Capital City.
"In general, there has been no significant change, meaning that the current conditions still reflect the conditions in the previous quarter. We expect the occupancy rate of offices in Central Business District (CBD) to continue to decline until the end of 2018," said Salanto, at a property exposure in Jakarta recently.
According to him, one of the causes of the decline in occupancy rate is the projected supply of office space in 2018, which is estimated to reach some 600 thousand square meters.
In fact, Salanto maintained, the volume of leasing activities in Jakarta office space is still smaller than the volume of supply of incoming offices, resulting in the absence of a balance point.
He mentioned that because of the large supply of offices, it is likely the number of office occupancy rates in the Jakarta area will decline to some 80 percent, from the current position of 82.8 percent.
This year also saw various non-technical sentiments, including political conditions, that affected the behavior of property investors, Salanto explained.
In contrast to the CBD in Jakarta, the occupancy rate in the non-CBD area is still considered high, but it will only be felt next year because supply will increase in non-CBD, especially in 2019.
"With a fairly high supply, occupancy is expected to drop to 80 percent by 2019," he said.
Reporting by Muhammad Razi Rahman, Andi Andussalam