Local property market shows sign of recovery<\/p>\n
JAKARTA (JP): The property market in Jakarta showed signs of
\nrecovery in the first quarter of this year with demand in the
\nretail sector growing faster than in the office and apartment
\nsector, property consultant PT Procon Indah\/Jones Lang LaSalle
\nsaid.<\/p>\n
Further growth in the property sector is expected, but will
\nstill be subject to sustainable economic recovery and the
\nexistence of political and social stability, the company said in
\nits newly released quarterly property market review.<\/p>\n
It predicted that the retail space market would continue to
\nsee stronger growth up to the end of the year compared to the
\noffice and apartment sectors.<\/p>\n
\"The office and apartment sectors will not likely see vigorous
\ngrowth like that in the retail market because of the current high
\nvacancy level in both sectors,\" the company said.<\/p>\n
Procon Indah said the retail space market had experienced
\nstronger demand so far, thanks to increased consumer spending,
\nwhich had prompted new small to medium size businesses to start
\noperating in the last quarter.<\/p>\n
The retail sector managed to transform from a tenant's market
\nin 1998 into a landlord's market this year because of a stable
\nstrong demand in the last three quarters and limited new supply,
\nthe company said.<\/p>\n
The average vacancy level in the retail space market stayed
\nwell below 10 percent in the first quarter this year with many
\nprominent centers almost fully leased, pushing the average rental
\nfees up 41.9 percent over the period.<\/p>\n
The company predicted that the occupancy level in the retail
\nspace market would remain above 90 percent until the end of the
\nyear.<\/p>\n
In the office space market, Procon Indah said investors had
\nstarted to indicate higher offering prices in the first quarter
\ncompared to last year's prices, although the growth of demand for
\navailable spaces had only been modest.<\/p>\n
The company said investor interest in the office sector, both
\nfor investment and operational purposes, would continue to rise.
\nLocal investors will particularly remain most interested in
\noffices with high occupancy levels.<\/p>\n
As the business climate improved in the first quarter, the
\ninquiry level about office spaces will likely increase further
\ntowards the end of the year, subject to continued political
\nstability.<\/p>\n
Net take up on office spaces will likely remain modestly
\npositive as the banking sector will continue to lease again
\ncurrently occupied spaces as a result of the liquidation and
\nongoing merger process.<\/p>\n
A slight increase in the service charges on office spaces will
\nlikely be unavoidable as a result of an electricity rate hike in
\nApril.<\/p>\n
In the apartment space market, the company said leasing
\ninquiries and transactions, particularly for units in the central
\nbusiness districts and prime residential areas, increased in the
\nfirst quarter this year.<\/p>\n
\"Leasing activities in the apartment space market continued to
\nbe dominated by expatriates,\" the company said, adding that many
\ncompanies had started to employ more expatriates as the business
\nclimate in the country was gradually improving.<\/p>\n
Two and three bedroom units are now more sought after than one
\nbedroom units as many of the expatriates either bring their
\nfamily members or anticipate that their families will join them
\nlater on.<\/p>\n
The individually owned strata-tiled units, however, recorded
\nthe highest take up this quarter as they offer more flexible
\nlease terms and are relatively more competitive than purpose-
\nbuilt rental apartments.<\/p>\n
Procon Indah predicted that the demand for rental apartments
\nwould increase further toward the end of the year, providing that
\nthe country could sustain the economic and political stability.<\/p>\n
Average rental in the overall apartment market, however, is
\nexpected to decline slightly due to a high vacancy level of 43.7
\npercent and stiff competition from the individually strata-tiled
\ncondominiums, which have many units available for lease.
\n(udi\/cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-property-market-shows-sign-of-recovery-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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