Jakarta office market leads region's growth
Jakarta's office market continued to lead Asia-Pacific growth last year as economic expansion boosted demand for office space, according to property consultancy firm Cushman & Wakefield.
Rental prices for office space in Jakarta's central business district rose 46 per cent in 2012 and that was the biggest growth rate in the Asia-Pacific region, the company said in a statement last Thursday.
The growth outpaced such locations as in New Delhi's Connaught Place, which rose 25 per cent, and China's Futian district in Shenzhen, which increased 11 per cent.
"In line with the economic growth projection of above six per cent in a year ahead, demand for office space in Jakarta during 2013 is expected to have a positive growth of 8.5 per cent," said Nurdin Setyawan, a Jakarta executive at Cushman & Wakefield.
With the economy growing - producing increasing numbers of middle-income households - multinational companies are setting up or expanding businesses in Indonesia, demanding more space to operate as they hire more people.
Even though rental prices are expected to ease a bit, an increase of 10 per cent to 15 per cent is possible this year, Nurdin said.
Elsewhere, Hong Kong's central business district remains the most expensive location for office space in Asia. Globally, it has slipped from its number one position for most expensive location. That top rank now belongs to London's West End.
Worldwide, prime office rents rose three per cent in 2012, driven by growth in South America, particularly Brazil and Colombia, Cushman & Wakefield said.
By Business TImes Online