Relocation and downsizing trends remain

• A positive net demand trend continued during this quarter, reaching approximately 12,200 sqm, bringing the annual total to around 51,700 sqm. The most significant contribution to this positive demand came from a single company in the e-commerce sector.
• In the quarter, the e-commerce sector continued to account for the largest portion of office space demand in terms of size, followed by the technology sector. Additionally, one flexible workspace provider committed to approximately 1,600 sqm in a Grade A building.

No new buildings complete in Q4 2024

• No new supply was delivered in Q4 2024. Only one project, Luminary Tower, was completed in 2024. This situation mirrors the previous year, when Jakarta Mori Tower was the sole building completed in 2023.
• By end-2024, the office vacancy rate stood at approximately 35.6%, showing a marginal improvement of 0.7 ppts compared to Q4 2023. This slight decrease in vacancy can be attributed to the limited introduction of new office space throughout the year.

Rents show a slight positive improvement at around 1% q-o-q

• Grade A rents continued their positive trend, increasing by 1% q-o-q. However, despite this recent uptick, rents still showed a -1.10% decline in full year 2024.
• Some newly completed buildings with low occupancy are maintaining competitive rates to attract tenants, while well-occupied buildings in preferred locations are cautiously raising their rents.

Outlook: Limited supply expected for the remaining years of 2025 and 2026

• Based on current expected net demand by end-2025, the vacancy rate is projected to decrease slightly to around 34%, as no new supply is expected coupled with gradual demand improvement.
• Flight-to-quality and downsizing are expected to persist as key trends in 2025, driven by tenants’ ongoing focus on cost-saving strategies. Despite these trends, rents are projected to remain positive over the next 12 months.