Companies relocate outside Jakarta CBD as office rates jump 100% in 3 years | Sector data
(The Insider Stories) -Sharp increases in office rental rates are pushing companies outside the Jakarta CBD, as demand increases despite land scarcity and limited supply.
Areas such as TB Simatupang, S. Parman and MT Haryono, in West and South Jakarta, are attractive as they offer lower rates and direct road access to the CBD, Colliers International Indonesia consultant Bagus Adikusumo is quoted as saying in The Jakarta Post.
Average rental rates for space in office buildings charged in U.S. dollars were $35 a square meter in the first quarter of this year, up more than 100% from about $15/sqm in first-quarter 2010, while per-square-meter space in buildings charged in rupiah gained to 145,000 rupiah from IDR97,000, it says.
Rental rates likely will move higher this year and next year but growth may slow in 2015 as more new supply comes onstream as developers seek to meet demand driven by expansion by many businesses that started in 2011, the report says.
TB Simatupang, which has large vacant areas as well as inner-city toll road access, has seen average rental rates grow only around 30% from $13/sqm in 2010 to $18 this year, it says.
