Demand for industrial estates continues to fall<\/p>\n
JAKARTA (JP): Demand for industrial estate land will decline
\nin the coming year by as much as 75 percent to 77 percent of
\navailable supply due to political and economic uncertainties,
\nleading property consultant Jones Lang LaSalle\/PT Procon Indah
\nsaid on Saturday.<\/p>\n
The total land sold at the end of the first half of 1999 was
\n79 percent of the total supply of 4,844 hectares, the consultant
\nsaid in a biweekly property report.<\/p>\n
Demand will decline in spite of falling prices of between 5
\npercent and 22 percent, it said.<\/p>\n
"Most investors continue to adopt a wait-and-see attitude
\nprior to making an investment commitment," it said, citing the
\nNovember presidential election and political and economic
\nstability among factors critical to market recovery.<\/p>\n
The rupiah's unstable exchange rate has also deterred
\ninvestors from making long-term investments, it added.<\/p>\n
The report said there had been no further development of
\nindustrial estates in the first six months of 1999.<\/p>\n
For the 1999 to 2001 period, the projected new industrial land
\nsupply is 235 hectares, with 200 hectares of land predicted to be
\nready by the end of 1999.<\/p>\n
Total land sold in the first six months of this year was nine
\nhectares, compared to five hectares in the entire year of 1998.<\/p>\n
The appreciation of the rupiah has not induced any
\nconsiderable changes to sales, although most transactions offered
\nflexible concessionary exchange rates, the report said.<\/p>\n
There was no shortage of inquiries, Jones Lang LaSalle said.<\/p>\n
Leasing appeared to be the more attractive market than land
\nsales, with most investors showing preference to short to medium-
\nterm investment commitments.<\/p>\n
Current rentals range from Rp 10,000 to Rp 20,000 per square
\nmeter.<\/p>\n
Given the activities in the secondary market, where factory
\nowners offer existing premises at lower rates than developers'
\nprices, the trend toward leasing would increase, it said. (02)<\/p>",
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