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GLOBAL real estate consultancy research Jones Lang LaSalle noted that premium office rental prices in Jakarta ranked 55th most expensive in the world.
In one year, premium office rental prices in Jakarta are recorded at US $ 60 per square foot. Besides Jakarta, five other cities in Southeast Asia are also included. In the JLL report, Singapore is ranked 14th with rental prices reaching US$117 per year per square meter.
This price is half lower than the premium office rental price in the central Hong Kong district, which is the most expensive submarket.
Meanwhile, Ho Chi Minh was ranked 38th with a rental price of US$78 per square meter; Manila 66th which reaches US$54 per square meter; Bangkok 77th for US$46 per square meter and Kuala Lumpur 85th place for US$30 per square meter.
The data is based on the fifth edition of JLL’s Premium Office Rent Tracker (PORT), a report comparing residential costs for premium office buildings across the world’s leading real estate markets.
JLL states that the banking sector or financial industry continues to be the main occupant of premium office space. In addition, technology companies, especially online platforms also play a greater role in driving demand.
According to JLL Indonesia’s Head of Research James Taylor said as the world’s fourth most populous country and the largest economy in Southeast Asia, Indonesia is a large growth market for technology companies and joint workroom operators.
“Demand from companies like this has increased sharply in the period 2017 to 2019 and is expected to grow further in 2020. Big cities in Southeast Asia such as Jakarta and Ho Chi Minh City are competing with Singapore to become the next Silicon Valley,” he said.
Specifically, Taylor said that a fast-growing technology ecosystem start-up company could distract some investors and private equity investors from Singapore.
Thus, cities in Southeast Asia including Jakarta can compete with Singapore which currently has a position as an investment and innovation center in Asia. [special photo]
