Skip Ribbon Commands
Skip to main content

News Releases

Singapore

Cost of leasing a grade A office in Jakarta up 37% in 2012

Jones Lang LaSalle’s latest Asia Pacific Office Index analyses office costs across the region


Whilst Hong Kong remains the most expensive location to rent office space in Asia Pacific, followed by Beijing and Tokyo, Jakarta has experienced the biggest percentage increase in grade A office rents in 2012, up 37 percent. This according to Jones Lang LaSalle’s Q4 2012 Asia Pacific Office Index​, released today. Beijing saw the second largest percentage increase last year, with grade A rents increasing by just over 20 percent. 

Six other cities in Asia Pacific also saw the cost of office space increase by over 5 percent; Bangkok (+9.2 percent), Bangalore (+6.9 percent), Auckland and Chennai (+6.8 percent) and Perth and Brisbane (+5.6 percent). In contrast 11 of the monitored cities saw a decline in rents in 2012, with the steepest falls in financial centres Hong Kong and Singapore, down 11.1 percent and 9.8 percent respectively, and in Vietnam where rents in HCMC also declined -11.1 percent and Hanoi where they were down 7.5 percent. 

Dr. Jane Murray, Head of Asia Pacific Research, Jones Lang LaSalle said: “The office market in general continues to favour landlords, although corporate occupiers have become increasingly reluctant to pay high rents. Over the short term, rental growth will probably be limited in most markets, while Hong Kong and Singapore should see further moderate declines and rents are expected to edge lower in a few Australian cities, including Melbourne and Brisbane. Looking ahead she added: “Single-digit growth is generally expected for the year, with rents in Hong Kong and Singapore starting to recover in 2H13 and the biggest uplift still likely to be seen in Jakarta. Once again, we expect further mild yield compression this year with capital values increasing faster than rents in many markets, supported by solid investor interest in the Asia Pacific region.” 

Todd Lauchlan, Country Head of Jones Lang LaSalle Indonesia said: “Rental growth in Jakarta continues to be driven by a lack of quality space and strong demand from corporates. The majority of the demand is from international companies who are expanding aggressively to cater to the demands of Indonesia’s rapidly expanding consumer base. We are also seeing significant take-up of space from Indonesian companies within owner occupied and strata titled buildings as they start to become a force in Jakarta’s office market.”