Jakarta (ANTARA News) - New investment in Indonesia's property market is still dominated by local investors, with foreign interest remaining relatively small, Jones Lang LaSalle said in its Q3 property market report.
"As the market is considered to be still in the early stage of a revival, foreign investors prefer to take a wait-and-see approach until they see structural improvement in the economy and the business operating environment, " it said.
Peter Barge, Jones Lang CEO for Asia Pacific, told a media briefing that 43 bln usd worth of capital investment flowed into commercial property in Asia in the past six months. A large portion of it went into mature markets like Japan, Hong Kong or Singapore.
"I haven't seen foreign investors investing (in a significant way) in Indonesia's property sector yet. They are still looking and undertaking some due diligence. We should see some capital investment start to come in next year, including the property sector," he was quoted by XFN-Asia as saying.
Jones Lang noted around 19 office projects were scheduled for completion over the next three years in the central business district (CBD) area of Jakarta.
The projects will add over 816,000 square meters of new office space, the property firm said..
By the end of September 2006, the total supply of commercial office space in Jakarta was approximately 4.26 mln sqm with about 3.14 mln sqm in the CBD area and 1.12 mln sqm in the non-CBD area.
Jones Lang noted that the supply of office space in both the CBD and non CBD areas in the September quarter was unchanged from Q2, with no projects completed during the period. (*)