Apartment owners now prefer leasing: Agent<\/p>\n
JAKARTA (JP): Property consultant Colliers Jardine sees a
\nshift in trends in the Jakarta residential apartment market as
\nmore and more developers rent their units out instead of selling
\nthem in order to offset the decline in sales in the second
\nquarter of this year.<\/p>\n
Colliers Jardine said in a statement on Friday that as of the
\nsecond quarter of 2001, the number of strata-titled residential
\napartments in the city totaled 23,975 units, of which 24 percent
\nwere left unsold.<\/p>\n
The low level of sales was attributed to a lack of confidence
\nin Jakarta's property market caused by political and economic
\ninstabilities in the country, as well as the increase in value-
\nadded tax on luxury goods, including apartments of over 150
\nsquare meters, it said.<\/p>\n
It, however, did not provide sales figures for the second
\nquarter period.<\/p>\n
\"There are no signs of an immediate turnaround yet,\" Colliers
\nJardine's managing director for Indonesia Richard Rossiter said
\nin the statement.<\/p>\n
Oversupply was likely to continue as 460 units will come on
\nthe market over the 12-month period ahead, he said, explaining
\nthat this will cause an increase of 1.9 percent in the overall
\nstock level.<\/p>\n
Due to the unsatisfactory sales, a large proportion of
\nresidential stock has been offered on the rental market,
\ncompeting with 2,714 serviced apartment units and 3,493 leased
\napartment units<\/p>\n
High profile strata-titled projects such as Puri Casablanca,
\nCasablanca Apartments, Menara Batavia Apartments and Four Season
\nResidences are renting their units out, the company said.<\/p>\n
The shift was further highlighted with property developers
\noffering short-term leases of three to six months, whereas during
\nthe pre-crisis years a three-year lease term was the norm.<\/p>\n
Furthermore, tenants no longer needed to pay rent in advance
\nfor periods of two to three years, but for shorter periods, it
\nsaid.<\/p>\n
\"Generally, rentals and capital values in the residential
\nmarket will remain depressed due to deepening political and
\neconomic instabilities,\" Rossiter said. (tnt)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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