Jakarta grows into shopping destination<\/p>\n
Tantri Yuliandini
\nThe Jakarta Post\/Jakarta<\/p>\n
Kelapa Gading Mall in North Jakarta is the place to go for those
\nwith ticklish taste buds, or if you prefer hanging out with
\nfriends and drinking coffee then perhaps Cilandak Town Square in
\nSouth Jakarta is for you.<\/p>\n
Bargain hunters should check out the clothing selection in the
\nnumerous International Trade Centers (ITC) dotted around the
\ncity, but if window-shopping is more your thing then Plaza
\nIndonesia in Central Jakarta is the place to go.<\/p>\n
Metropolitan Jakarta is never short of shopping destinations,
\nand while property experts warn that there is already an
\noversupply of retail space in the Jakarta property market, new
\nmalls keep cropping up.<\/p>\n
"That's what they say all the time, but the truth is that
\nJakarta malls are never empty," the marketing general manager for
\nBellanova Country Mall in Sentul, Bogor, Felix S. Hasamin, said
\nrecently.<\/p>\n
The malls may not be empty of visitors, but with the expected
\ndevelopment of several new malls over the next few years, the
\ndanger of oversupply is very real.<\/p>\n
The completion of Pondok Indah Mall 2 and Pondok Indah Square
\n(POINS) in South Jakarta, for example, increased Jakarta's total
\nretail stock to about 2.13 million square meters as of the end of
\nSeptember, property consultant Jones Lang LaSalle said in its
\nthird quarter report.<\/p>\n
In the next three years, at least 18 new retail developments
\nare due for completion, most of which will be located in Central
\nand South Jakarta.<\/p>\n
In 2006 alone, an additional 510,000 square meters of retail
\nspace is expected when eight projects -- including Sudirman
\nPlace, Mega Glodok Kemayoran and Jakarta City Center -- finish
\nconstruction.<\/p>\n
"Another 550,000 square meters from seven projects are
\npredicted to come onstream in the 2007-2008 period," Jones Lang
\nLaSalle said.<\/p>\n
Retail centers and shopping malls have proven to be one of the
\nmost resilient property sectors in bouncing back from the 1997
\nmonetary crisis, and the emergence of massive shopping malls and
\ntrade centers in 2002 also marked the recovery of the property
\nmarket.<\/p>\n
But as new supply outstrips take-up, more and more vacant
\nspaces are expected. According to Jones Lang LaSalle, vacancy
\nlevels rose to 13.7 percent during the third quarter of this
\nyear, compared to 11 percent during the same period last year.<\/p>\n
"By the end of 2005, supply in Jakarta will be abundant while
\ndemand will decline due to the current economic condition," Jones
\nLang LaSalle research manager Anton Sitorus said.<\/p>\n
He predicted vacancies will hit 17 percent to 18 percent next
\nyear, or similar to the post-1998 level, only to soften in 2007
\nor 2008 in line with the pick up in demand.<\/p>\n
Most of the vacancies are in strata-titled trade centers --
\naimed at customers in the middle to lower economic brackets --
\nwith mostly repeat local tenants who are vulnerable to changes in
\nthe country's economy.<\/p>\n
The government's move to increase fuel prices by up to 126
\npercent in October sparked inflationary pressure, causing the
\nConsumer Price Index to rise to 17.9 percent in October, its
\nhighest level in the last six years.<\/p>\n
The Indonesian Retail Merchants Association reported that
\nsmall and medium-scale retailers were hit hard by high inflation
\nrates, and would also suffer from a planned increase in
\nelectricity rates next year.<\/p>\n
"Two years ago, I could sell five units (of strata-titled
\nretail space) a month, but now I can only sell two," a saleswoman
\nfor a retail development company in Bekasi, Floureno Milla, said.<\/p>\n
Short-term demand will likely be concentrated in the upper
\nmarket segment rather than the middle to lower end of the market,
\nbecause the former is relatively protected from the impact of
\nhigher inflation.<\/p>\n
The occupancy rate for strata-titled retail space in Jakarta
\n-- still considered the region with the best prospects -- stands
\nat about 68 percent. The occupancy rate drops to about 54 percent
\non the outskirts of the city, according to property research firm
\nProcon Indah.<\/p>\n
The development of leased spaces, however, remains strong with
\noccupancy rates of about 91 percent in Jakarta and 96 percent on
\nthe outskirts.<\/p>\n
Colliers International reported that inquiries for retail
\nspace remained strong in some prominent leased malls such as Mall
\nKelapa Gading in North Jakarta, Mall Taman Anggrek in West
\nJakarta, Plaza Indonesia in Central Jakarta and Pondok Indah Mall
\nin South Jakarta.<\/p>\n
Arcadia Senayan in South Jakarta enjoys full occupancy, thanks
\nin part to its parent, Plaza Senayan, with tenants such as
\nTaiwanese restaurant Din Tai Fung, Red Square Bar, Brasserie
\nMadeleine and My Body Gym and Spa, the property consultant said.<\/p>\n
Besides competition for space, shopping mall developers are
\nalso under pressure to be more creative to attract both tenants
\nand visitors.<\/p>\n
The piazza concept -- a public square with room for
\npedestrians -- initiated by Cilandak Town Square in South Jakarta
\nis one concept that recently has showed great popularity.<\/p>\n
It has now been imitated by the Summarecon Group's La Piazza
\nin Kelapa Gading, North Jakarta, Benton Junction at Supermal
\nLippo Karawaci, City Walk at Citra Grand Cibubur, and the
\nBellanova Country Mall in Sentul, Bogor, which is scheduled to
\nopen in May 2006.<\/p>\n
So, what's your favorite shopping destination in Jakarta?<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jakarta-grows-into-shopping-destination-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }