Occupiers have started gradually switching back to working from the office. Sustainability, technology integration, employee health and wellness are coming to the forefront. The improving health outlook and resurgent economy should support a recovery of office leasing activity.
Sales performance remains flattish this quarter, coincident with the festive season in May. Investor-buyers have lost their appetite for units in the primary market. Developers need a pause in this strenuous market and have not gained confidence yet in the strata-title apartment market, as shown by some delays in the project pipeline.
Foot traffic at retail centres will rise as more pandemic restrictions are lifted. More tenants are confident about returning to shopping centres, both to re-open and expand business. However, this positive sentiment has yet to impact on occupancy costs. In terms of tenancy mix, since department and hyper stores are in an unfavourable situation, the occupier configuration continues to evolve.
The high-tech industry has bolstered its existence and continued to expand until recently. Up to the first semester this year, the predominance of the technology sector and data centres has been crystal clear. These sectors are heading towards maturity with more potential transactions in the pipeline. Another sustainable sector is logistics, which has been mainly stimulated by the growing need for storage and distribution. The industrial sector has already entered in the recovery stage and will gain more traction in the long run.
In line with the removal of quarantine policies for overseas travellers, the number of foreign visitors to Jakarta has shown a steady rise. Hotels in Jakarta have signaled a positive outlook, albeit moderately. Two chief hotel performance indicators, the AOR (average occupancy rate) and ADR (average daily rate), have reached a level above the pandemic period (mid 2020 to end of 2021). Going ahead, the positive momentum could continue, in line with expectations that the economy and hotel pipeline will grow moderately.