CBD Office: Office leasing activity virtually ‘flatlined’ during April to June 2020, with the worsening COVID-19 outbreak and the reduced office operations & travel restrictions imposed in Jakarta.
Non-CBD Office: By the end of June 2020, the overall take-up in the Non-CBD office market stood at negative 25,500 sqm, bringing average occupancies down to 81.9% due to premises downsizing, relocations and even some office closures, particularly from tenants in the services and trading sectors in South and West Jakarta.
Retail:
- Jakarta: Looking further, we expect that the retailers will also be more focused on adapting the integrated online and offline sales to maintain and even grow their business during this pandemic.
- Debotabek: As with retail centers within Jakarta, landlords of Debotabek retail centers considered tenants’ requests for rental abatement or payment deferrals due to the impact of COVID-19 on a case-by-case basis based on their specific retail sector, with those stronger performing retailers continuing to pay rentals at their normal rates.
Condominium: Average vacancy within the Condominium sector was largely unchanged at 49.7%, with some expatriate occupiers who had returned to their home countries in the last quarter, gradually re-entering the country as companies started to recommence work from their offices.
Rental Apartment: Serviced Apartment operators struggled for new demand inquiries as some new leasing enquiries from expatriates were postponed or canceled due to the implementation of travel restrictions to Indonesia, as well as other existing expatriate tenants being sent home as their companies put operations on hold during the pandemic.
Industrial Estate: As the land bank in the Greater Jakarta become more limited, future development of industrial estates has more potential to expand to eastern corridor of the Greater Jakarta such as Karawang, Purwakarta and further to Subang, in line with the development of supporting facilities that are also occurring around the area.
Hotel: The tourism & hospitality sector has unsurprisingly been one of the hardest hit by the COVID-19 pandemic. All hotel classes have been affected by the regional lockdown and travel restrictions, with a number of hotels having suspended their operations entirely or even temporarily become accommodation for frontline healthcare workers.
Landed Residential: Despite the decline in overall demand, enquiries for ready-for-occupation housing rose as the pandemic continued, with buyers seeking to avoid paying monthly purchase installments as well as continued rental, whilst waiting for completion of their new house.
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