Several property markets in Indonesia’s capital city of Jakarta did surprisingly well in the fourth quarter of 2008, according to reports from property analyst DTZ. The office market had an average occupancy rate of 91 percent, and the high-end residential market also did well.
Due to the limited supply of condominiums in the city, the overall absorption rate of high-end units was very high, at 88.3 percent. Additionally, these buyers have remained in a good position with strong purchasing power, according to the report. For high-end projects, the average price for a two-bedroom unit increased by 4.5 percent to Rp 23 million per square meter.
Despite a 33.7 percent increase in new office space in the central business district, demand in Jakarta remained high through the fourth quarter. Average rents in the CBD increased by 10 percent year-on-year to Rp 138,500 per square meter, while rents for prime office space rose 17 percent to Rp 158,600. The office market for Jakarta is expected to remain stable throughout 2009.
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