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    Building Supply Shortage Hits Jakarta’s Central Business District

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    By Annisa Febiola

    Copyright tempo

    Building Supply Shortage Hits Jakarta's Central Business District

    TEMPO.CO, Jakarta – Colliers Indonesia has stated that the office market in Jakarta is facing a supply constraint, particularly in the Central Business District (CBD). Since the end of 2023, Colliers Indonesia has noted that no new office buildings have entered the CBD market.Head of Research Department at Colliers Indonesia, Ferry Salanto, estimated that this situation would continue until 2027 and that new supply would only be available in 2028. “Since the end of 2023, until 2027, the supply in the CBD has been very limited, even non-existent. Only around 2028 will there be a new supply,” he said in a virtual presentation on Wednesday, October 1, 2025.According to Ferry, developers are still hesitant to launch new projects in the CBD. They are waiting for the demand to recover first before deciding to build new office buildings. “We can see that developers are still holding back and continually monitoring demand growth,” he said. For the period from 2024 to 2027, an additional supply of new office projects only emerged outside the CBD. From early 2025 until the third quarter, Ferry stated that the new supply is estimated to be around 125,000 square meters, all of which are outside the CBD. “The total supply in Jakarta is around 11.4 million square meters,” said Ferry. Out of this total, more than 2 million square meters are still unoccupied. In terms of occupancy, Ferry mentioned that the office occupancy rate in the CBD reached 75.3 percent in the third quarter of 2025. Meanwhile, outside the CBD, it is 69.3 percent for the same period. When viewed based on building classes in the CBD, the largest vacancy rate, 48.9 percent, is recorded in Class A office buildings, most of which are located in the CBD. This is followed by class B buildings at 25.9 percent, class C at 17.4 percent, and premium at 7.9 percent. Ferry added that the preferences of office building tenants have also changed. He indicated that tenants still prioritize buildings or offices connected to public transportation. “This is still an attraction for potential tenants.”Editor’s Choice: Statistics Indonesia Reports August Trade Balance Surplus at US$5.49 BillionClick here to get the latest news updates from Tempo on Google News

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