Occupancy rate of shopping centers down<\/p>\n
Sari P. Setiogi, The Jakarta Post, Jakarta<\/p>\n
The occupancy rate for shopping centers in the Greater Jakarta
\narea declined in the forth quarter of 2002, as the market showed
\nsome signs of oversupply, consultancy firm PricewaterhouseCoopers
\n(PwC) said on Thursday.<\/p>\n
The decline might also signal that consumer spending, which
\nhas been the main engine of economic growth over the past several
\nyears, is slowing, it said.<\/p>\n
\"The occupancy rate declined by 1.4 percentage points to 92.2
\npercent, although the retail sector itself was still the
\nstrongest sector last year,\" PwC's vice president director for
\nthe property group, Dian Pradipta, said.<\/p>\n
She predicted the declining trend would persist in the coming
\nyears as more new retail space came onto the market despite the
\napparent oversupply, and as the prolonged economic crisis and
\ninflation further dragged down consumer spending.<\/p>\n
\"We predict the market will be oversupplied in the next one or
\ntwo years, while the occupancy rate will drop below 75 percent,\"
\nDian said.<\/p>\n
PwC's retail property manager, Sari Wulaningsih, said the
\nfavorite shopping centers remained those located the capital's
\nprime areas, such as Plaza Senayan, Plaza Indonesia and Pondok
\nIndah Mall.<\/p>\n
\"The occupancy rates for these locations reached almost 100
\npercent. Maybe because the consumer spending of those who go (to
\nthese shopping centers) has not been very much affected by the
\nprolonged crisis or inflation,\" she said.<\/p>\n
Sari said the supply of new retail space between 2003 and 2005
\nwould reach 800,000 square meters, 80 percent of which would
\neither be sold under a strata-title scheme or leased on a long-
\nterm basis.<\/p>\n
In 2003 alone, about 300,000 square meters of new shopping
\ncenters will be offered on the market, she said.<\/p>\n
\"One of them, which was just launched early this year, is the
\nSenayan Trade Center. There will also be the World Trade Center,
\nMangga Dua, Plaza Kelapa Gading I, Plaza Ciputat, Plaza Eka Loka
\nSari and most likely Plaza Indonesia III,\" said Sari.<\/p>\n
Sari said projects that offered space on the basis of long-
\nterm leases had better prospects than strata-title projects.<\/p>\n
\"Occupancy rates for shopping centers for lease will remain
\nhigh, while strong take up of the new strata projects may be
\nlacking, since many of the buyers are only investors and not end-
\nusers,\" Sari said.<\/p>\n
The existing shopping centers in Greater Jakarta have a
\ncombined space of about 1.556 million square meter. About 1.35
\nmillion square meters are leased, while 216,000 square meters are
\nstrata-titled, she said.<\/p>\n
In the forth quarter of 2002, three new shopping centers
\nentered the market: Cilandak Town Square (South Jakarta), Kelapa
\nGading Mall III (North Jakarta) and ITC Kuningan (South Jakarta).<\/p>",
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"sponsor": "Okusi Associates",
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