Steady growth at lower range
The GDP growth in second quarter of 2019 is expected to be within the lower range of Bank Indonesia’s growth projection of about 5.0% YoY. Rupiah was relatively stable over the second quarter, standing at Rp14,171 per 1 US$ as of June 2019, or slightly appreciated by 0.2% QoQ. While inflation for the first 6 months is forecasted at 3.26% YoY (compared to 3.12% in the same period last year), the stock market composite index decreased 6.3% during the quarter, closing at 6,315 on June 21st.
More projects entered the market
During the second quarter of 2019, 5 new projects were completed, with a total space of about 181,000 square meters (sq.m.). Meanwhile, the total net take-up over the reviewed quarter stood at 65,800 sq.m., and this dragged down the average occupancy rate to 73.13% at the end of June 2019, lower than that in the same period of 2018 of 75.47%.
Average rental unchanged
The average gross rental (all grades) in US dollar terms was relatively stable over the second quarter 2019 and stood at US$21.10 per sq.m. per month. Rentals are expected to decrease, as the overall vacancies are projected to rise further due to completions of new buildings in the upcoming quarters.
Cushman & Wakefield Indonesia Research, June 2019