High-rise building owners still strong<\/p>\n
JAKARTA (JP): Foreign investors are seeking cheap office
\nbuildings in the capital but owners are in no hurry to surrender
\ntheir properties, property consultantcy First Pacific Davies
\nIndonesia said.<\/p>\n
The company said in its weekly report yesterday that some
\nhigh-rise building owners did not yet view the crisis as fatal.<\/p>\n
\"Surprisingly to many investors, most developers have not
\nsurrendered to the unfortunate conditions following the collapse
\nof the rupiah's value against the U.S dollar,\" First Pacific
\nDavies said.<\/p>\n
It said there were three scenarios through which property
\nowners were surviving the crisis.<\/p>\n
First, it said, owners of top grade A office buildings, with
\nrental rates of US$22 per square meter per month, might survive a
\nfive-year crisis after four \"good years\" when they got maximum
\nreturns in terms of rental fees and occupancy.<\/p>\n
\"The crisis is defined as a reduction in rental rates by
\napplying an average fixed rate of Rp 5,000 per one U.S. dollar,
\nand a decrease in occupancy rate to a minimum of 80 percent,\" it
\nsaid.<\/p>\n
Lower class grade A offices, with an average rental rate of
\n$19 per square meter per month, could survive a five-year crisis
\nafter having five \"good years\".<\/p>\n
And the third scenario was for grade B office buildings, with
\nan average rental rate of $13 per square meter per month. First
\nPacific Davies said the owners of those buildings could survive a
\nfour-year crisis only after they had enjoyed eight \"good years\".
\n(gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/high-rise-building-owners-still-strong-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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