Property market picking up: Report<\/p>\n
JAKARTA (JP): The property market in the capital showed signs
\nof recovery during the third quarter of the year in line with the
\nstrengthening of the rupiah to the U.S. dollar and the fall in
\ninterest rates during the period.<\/p>\n
According to the latest survey of FPDSavills property services
\ncompany, overall occupancy rates, except for office buildings,
\nincreased slightly from June to September.<\/p>\n
The company said the Jakarta office occupancy rate decreased
\nto an average 72.6 percent from 73.2 percent in the previous
\nquarter.<\/p>\n
A decline of 2 percentage points occurred in the Central
\nBusiness District (CBD) to reach an average of 74 percent and an
\nincrease was recorded of 1 percentage point in the secondary area
\nto an average of 68 percent.<\/p>\n
In the office building sector, there was no new supply over
\nthe quarter, with the exception of the previously owner-occupied
\nDanamon Data Center (14,000 sq meters in Mega Kuningan), which is
\nnow offered for lease, and the reopening of Futura Office
\nBuilding (4,500 sq meters on Jalan T.B. Simatupang) following
\nrefurbishment.<\/p>\n
Stocks of office space in the CBD and secondary areas total
\n2.9 million sq meters and 1.1 million sq meters respectively, of
\nwhich approximately 10 percent represents strata title.<\/p>\n
\"The next quarter we expect some 6,000 sq meters of new supply
\nfrom Wisma Soewarna (Phase I) in the Soekarno-Hatta International
\nAirport,\" the company said in its report.<\/p>\n
Average asking rents in the office sector remained generally
\nthe same as last quarter, while transaction rents declined in the
\nCBD area but increased in the secondary area, FPDSavills said.<\/p>\n
According to the company, average transacted Grade \"A\" CBD
\ngross rents approximated US$10 (based on an exchange rate of Rp
\n7,500) per sq meter per month over the quarter. Grade A
\ntransaction rents were mostly in rupiah priced in the range of Rp
\n65,000 to Rp 95,000 per sq meter per month. Tenants included oil,
\nconsumer goods and insurance companies, airlines and banks.<\/p>\n
\"Some companies relocated to less expensive new buildings,
\nwhile others were upgraded to Grade A stock,\" it said.<\/p>\n
Retail<\/p>\n
The occupancy rates for retail space increased 4 percent, 1
\npercent and 5 percent for grades A, B and C non-strata-title
\nshopping centers respectively.<\/p>\n
The average occupancy rate for all grades reached 95 percent,
\nup from 93 percent in the previous quarter, the company said,
\nadding that the increase might reflect growing confidence in the
\nretail market.<\/p>\n
Stock of shopping center space increased to a total of 1.14
\nmillion sq meters over the quarter, which included 140,000 sq
\nmeters of strata title and one million sq meters of leased
\nstocks. Hypermarket stock increased to 74,500 sq meters area.<\/p>\n
\"Next quarter the 27,000 sq meter Sogo Department in Plaza
\nSenayan shopping center will open. Some projects on hold are
\nrumored to be starting construction next year,\" FPDSavills said.<\/p>\n
Apartment<\/p>\n
Occupancy rates in the apartment sector increased, except for
\nleased units in the secondary area. The increase was primarily
\nexperienced by relatively new and higher quality apartments
\noccupied by foreign business residents.<\/p>\n
The occupancy rate of CBD leased and serviced units increased
\nby 4 percentage points and 2 percentage points respectively to 69
\npercent and 58 percent.<\/p>\n
Some strata title sale transaction were recorded at $3,200 and
\n$2,500 per sq meter for upper-upper-class units and $933 per sq
\nmeter for middle-middle-class units. \"Of the CBD strata title
\nunits, approximately 73 percent are sold,\" the property service
\ncompany said.<\/p>\n
In the secondary area, occupancy rates of leased units
\ndeclined 1 percentage point to 65 percent, while it increased 1
\npercentage point to 48 percent for serviced units.<\/p>\n
FPDSavills said that more than 50 percent of leased units in
\nboth CBD and secondary areas were occupied by Japanese tenants.<\/p>\n
Rents for upper-class leased units in the secondary area fell
\nto $9.5 from $11 per sq meter per month last quarter, but the
\nmiddle class rents remained the same at $6 per sq meter per
\nmonth. For secondary area serviced units, upper-class rents fell
\nto $11 from $13 per sq meter in the previous quarter, while the
\nmiddle-class serviced units declined to $9 from $12 last quarter.<\/p>\n
Hotel<\/p>\n
Following the peaceful June elections, the overall hotel
\noccupancy rate experienced an increase.<\/p>\n
The company said that a significant increase was recorded by
\nfour and three star hotels with 39 percent and 54 percent
\nrespectively during the third quarter.<\/p>\n
A more modest increase was experienced by five-star hotels
\nwith a 31 percent occupancy in the same period as compared to 26
\npercent the previous quarter.<\/p>\n
Average rupiah room rates for five and four star hotels
\ncontinued to decline during the quarter by approximately 3
\npercent and 2 percent respectively.<\/p>\n
However, three star hotel rates experienced an almost 11
\npercent increase in terms of rupiah value. The average rupiah
\nroom rates (excluding tax and service) for five, four and three
\nstar hotels were Rp 590,000, Rp 255,000 and Rp 200,000
\nrespectively.<\/p>\n
Hotel stock remained the same since the Treval International
\nhotel opened in June. Last quarter's supply projection for 2000
\ndecreased by 300 rooms to only about 600 rooms, while the total
\nstock by 2000 is estimated to reach about 20,700 rooms. (hen)<\/p>",
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"sponsor": "Okusi Associates",
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