Office oversupply likely in Jakarta
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Jakarta is projected to see an estimated 1.4 million square metres of new office space come available in 2014, which according to property analysts is the largest annual supply bump in history.
Colliers International associate research director Ferry Salanto said it was still questionable whether there would be sufficient demand for the space in 2014, as none of the new office projects have pre-committed demand.
“The period of 2014–2015 will be a tough year for players in the market due to the surging office supply in the city, particularly those along TB Simatupang [south and east Jakarta] because almost half of the office space will be at this location. Market demand remains a question,” Salanto said.
According to recent data from Colliers, there are 32 new office projects in and outside the central business district.
