Thu, 12 Feb 2009
From: The Jakarta Globe
By Aditya Wikrama
In a rare bit of good news related to the global financial crisis, the current economic slump may provide opportunities for companies to snap up “cheap” office space now on offer by property developers.

With demand expected to slow this year, competition among developers is heating up as they offer bigger incentives and more flexible leases.

Property consultants said on Wednesday that now may be a good time to buy or lease higher-end properties like office space.

“We think it would be a good time for firms to lock into a long-term deal, as a slowdown in office space demand is putting downward pressure on rental price growth,” said Anton Sitorus of
PT Jones Lang LaSalle.

Office base rental rates, currently at around $10 per square meter, have risen steadily from $7 in 2005. However, growth has slowed during the past year, rising from only $9 per square meter at the end of 2007.

Anton said Jakarta’s property markets, including office space, were near the bottom of their price cycles, creating good investment opportunities.

A slowdown in office space demand is putting pressure on price growth’

Anton Sitorus,
head of research at
PT Jones Lang LaSalle

The capital’s office space market enjoyed healthy demand last year, driven primarily by corporate expansions and relocations of both local and multinational companies in various sectors.

Growth slowed in the last quarter of 2008 as financing from banks dried up, which led to declining demand due to rising rental rates, according to a recent survey by Bank Indonesia.

Ferry Salanto of PT Colliers International said Jakarta prices had proved relatively stable compared with neighboring capitals.

“Thus far, we have not registered a significant drop in Jakarta office rental rates, but we project a slowdown in construction activity this year, particularly from recently completed projects,” he said.

Ferry said some office projects had been forced to push back their completion timetables due to the downturn.

“But due to the large amount of construction activity being rescheduled, the office market will stay relatively healthy because it will help control supply,” he said.

Jakarta’s office market grew by around 390,000 square meters in 2008, bringing the total at year’s end to about 5 million square meters.

Anton said about 1 million square meters could open up in Jakarta in the next three years.

“Around 65 percent of this future supply will be in the [central business district],” he said.

He added, however, that office space demand from oil and gas, mining and telecommunication firms would likely remain moderate in the coming years.

Analysts also said that if this year’s legislative and presidential elections go smoothly, interest in real estate could improve.


Thu, 12 Feb 2009
From: JakChat
Comment by KuKuKaChu
have estate agents ever in history considered "now" to be a *bad* time to buy?


Thu, 12 Feb 2009
From: JakChat
Comment by Roy's Hair
Enter Larry Bellafontarse stage left...



Fri, 13 Feb 2009
From: JakChat
Comment by fred
Originally Posted By: KuKuKaChu
have estate agents ever in history considered "now" to be a *bad* time to buy?


An estate agent telling the truth??????

Nerrrrrrr.

Anyway, now is a shit time to buy. I'm unsure of the situation here but going by the mess in the UK I would wait a while longer.
Loads more jobs to be lost and loads more repos to happen.
The bottom is far away from being hit yet

Think happy thoughts if you are in the UK. At least there won't be any more boom and bust going on. I remember New Labour telling me. wink



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