Market for office space strengthening: Analyst<\/p>\n
JAKARTA (JP): The office space market in the capital city was
\nstrengthening during the first half of this year, with demand for
\nadditional space estimated at 120,000 square meters, analyst said
\nhere over the weekend.<\/p>\n
\"During the first half of this year, the office space market
\nsaw substantial leases by domestic and foreign companies,\" said
\nPeter Collins, the managing director of Colliers Jardine
\nIndonesia, a property consultant company.<\/p>\n
He said that the strength of leasing activities is partly
\nbeing fueled by large scale floor users taking advantage of a low
\nrental climate to relocate to newer premises.<\/p>\n
He expects that rents will decrease in the long term.<\/p>\n
\"Precommitments averaging 60 percent of planned space are
\nbeing achieved for premium buildings under construction and those
\nscheduled for completion in the short term,\" Collins said.<\/p>\n
In the July 1996 edition of Asia Pacific Property Trends,
\nwhich was published by McGraw Hill, Colliers Jardine reported
\nthat Jakarta's supply of new office space in the first six months
\nof the year totaled over 100,000 square meters, compared to
\napproximately 125,000 square meters over the same period of last
\nyear.<\/p>\n
Premium buildings completed during the first half of the year
\nwere Wisma 46 (89,500 square meters) and Bapindo Tower II (45,000
\nsquare meters).<\/p>\n
\"Additional new floor space supply of 363,516 square meters is
\nexpected to become available over the remainder of the year,\"
\nsaid Collins.<\/p>\n
He noted, however, that with high interest rates and a squeeze
\non property lending, some projects could be delayed.<\/p>\n
According to Collins, on the back of the increasing affluence
\nof Jakarta households, retailers are expected to increase sales
\nby 22 percent this year in real terms.<\/p>\n
He noted that most retail centers to be completed this year in
\nthe capital are already 90 percent leased.<\/p>\n
Although inquiries from foreign investors seeking industrial
\npremises in Jakarta have cooled, domestic manufacturers are
\nincreasingly demanding smaller plots of land between 0.5 hectares
\nand two hectares, as well as small factory buildings varying from
\n1,000 to 2,000 square meters in size.<\/p>\n
competition for both four-star and three-star hotels in
\nJakarta are expected to tighten with the addition this year of
\nabout 1,000 four-star hotel rooms and 2,056 three-star rooms.
\n\"The extra competition should put downwards pressure on occupancy
\nlevels and room rates by the year-end,\" said Collins.<\/p>\n
The total stock of international standard hotel rooms reached
\n14,518 units in June. During this year, 3,926 hotel rooms are
\nscheduled to become available, 25 percent of which have already
\nbeen released. Next year, the construction of over 2,900 new
\nrooms will be completed.<\/p>\n
According to Collins, the number of Jakarta's stock of high
\nend apartments reached 7,958 in the first half of this year, an
\n18 percent increase over last year's stock.<\/p>\n
The average occupancy of strata title apartments increased
\nmarginally to 47.3 percent at mid-year from 47.1 percent last
\nDecember. However, apartments solely for lease enjoyed an
\noccupancy rate of 93 percent due to high demand from expatriates
\nand medium-term occupants. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/market-for-office-space-strengthening-analyst-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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