Tuesday, 29 January, 2008 | 15:54 WIB<\/p>\n
TEMPO Interactive, Jakarta: The growth of property in the retail sector this year is predicted to reach its peak, or highest demand. After the 1998 economic crisis, this sector grew ahead of other sectors.<\/p>\n
Property consultant, PT Property Advisory Indonesia (Provis), Arif Rahardjo, said that the sluggish retail growth is caused by the price of rent and the Rupiah\u2019s weakening exchange rate against the United States Dollar. \u201cApparently developers began to be careful in raising their rent,\u201d he said in Jakarta yesterday (28\/1).<\/p>\n
The reason is, he said, competition in the retail sector appears to be tighter compared to previous years. Therefore the concept that developers made for retail projects will be important to attract rentals.<\/p>\n
In the next two years, Provis predicted that Jakarta\u2019s retail property sector will still be dominated by one-stop-retail. The retail concept which will be a trend is for food products and entertainment. Provis also predicted there will be facility-supporting retail development.<\/p>\n
Arif explained that the retail occupation rate has not gone down drastically. The retail sector will surpass its peak if the total of leased rooms and occupation rate decreases. \u201cIt hasn\u2019t dropped drastically,\u201d he said.<\/p>\n
Retail property absorption in last year\u2019s fourth quarter was recorded to be 67,400 square meters. \u201cThis is the highest absorption rate in 2007,\u201d said Arif.
\nProvis\u2019 Managing Director \/ Senior Consultant, David Cheadle, said Indonesian property growth will not be affected by the economic condition in the US. \u201cNor will the property in Japan, China and Korea,\u201d he said.
\nHowever, David is certain that the retail property condition in Indonesia is still good. \u201cHealthy but slow,\u201d he said.<\/p>\n
RIEKA RAHADIANA<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/2008-retail-sector-close-to-peak-1201598521", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }