Property demand stronger during first quarter<\/p>\n
JAKARTA (JP): The Jakarta property market was stronger in this
\nyear's first quarter and building start-ups in almost all real
\nestate sectors remained high despite the coming general election,
\na property analyst said yesterday.<\/p>\n
PT Procon Indah's senior technical consultant and Jones Lang
\nWooton Asia's director, Phil Simpson, said the first quarter of
\n1997 saw new projects start in all property sectors.<\/p>\n
Jones Lang Wooton's Susan Pranata said "the net take-up of
\noffice space in the central business district during the first
\nquarter was 102,756 square meters, up 11 percent from the same
\nperiod last year".<\/p>\n
In the retail market, net take-up was 50,365 square meters, up
\n30 percent on the same period last year, Susan said.<\/p>\n
The analysts were speaking at the release of the company's
\nJakarta property market outlook.<\/p>\n
The report said 80 percent of the retail market's new supply
\nhad been sold before the properties were built.<\/p>\n
In the residential estate market, 10 new estates taking up
\n1,650 hectares were launched in Greater Jakarta over the last six
\nmonths.<\/p>\n
The estates in the Cibubur-Cileungsi corridor were launched
\nearlier this year.<\/p>\n
Net take-up of rental apartments was 972 units, up 136
\npercent.<\/p>\n
The report said the financial and securities,
\ntelecommunications and manufacturing sectors stayed the main
\nsources of demand.<\/p>\n
Corporate tenants wanting to lease many units were also
\nprevalent.<\/p>\n
An estimated 2,753 completed strata title apartments were sold
\nduring the first quarter -- a 113 percent increase.<\/p>\n
There was also a healthy absorption of 115 hectares of
\nserviceable industrial estate in Greater Jakarta, a 130 percent
\nrise.<\/p>\n
Former PT Procon Indah technical advisor, Craig Williams, said
\nnew taxes and not the general election were more likely to affect
\nproperty demand.<\/p>\n
Previously, property consultant PT DTZ Debenindo's managing
\ndirector, Victor Chan, said the idea of uncertainty was caused
\nmainly by Western media reports and not supported by a sound
\nunderstanding of Indonesian politics.<\/p>\n
Indonesia will hold the general election for its 500-member
\nHouse of Representatives in May.<\/p>\n
The 1,000-member People's Consultative Assembly, which
\nincludes all House of Representatives members, will elect a
\npresident in March.<\/p>\n
"Overall, with continuing healthy levels of economic growth
\nand direct investment in Indonesia, we predict that demand for
\nproperty will remain high during 1997," Simpson said.<\/p>\n
With inflation under control, Bank Indonesia has been lowering
\ninterest rates and in the last six months average deposit rates
\nhave fallen by between 1 percent and 2 percent, while prime
\nlending rates have dropped by about 0.5 percent.<\/p>\n
The report said the average office rental price was stable at
\nUS$13.50 a square meter but the range of asking rents at several
\npremium quality buildings which will be completed in the next two
\nyears rose from between $17 a square meter and $19 a square meter
\nto between $18 a square meter and $20 a square meter.<\/p>\n
The average retail rental price for prime ground floor space
\nin primary and secondary locations was steady at $77.10 a square
\nmeter and $51.40 a square meter a month respectively. (bnt\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/property-demand-stronger-during-first-quarter-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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