Property market remains weak<\/p>\n
Debbie A. Lubis, The Jakarta Post, Jakarta<\/p>\n
Property consultant PT Procon Indah said on Thursday that
\nproperty demand in Jakarta would remain modest despite the
\ncurrent appreciation in the rupiah and a declining interest rate.<\/p>\n
But \"should the improving market sentiment in the early (part)
\nof the year continue, an upside potential in the medium term may
\nexist,\" Procon said in its quarterly property market report.<\/p>\n
Since the beginning of the year, the rupiah has seen an upward
\ntrend as the country's political situation has improved, with
\nprogress in economic reform programs -- including the recent sale
\nof government shares in Bank Central Asia.<\/p>\n
The interest rate has also started to ease down as Bank
\nIndonesia has allowed its benchmark rate to go down by nearly 18
\npercent late last year, to around 16.70 percent now. A lower
\ninterest environment would make bank lending cheaper.<\/p>\n
Procon noted that sectors relying on foreign investment such
\nas industrial estate, rental office, and rental apartment still
\nexperienced weak demand as a healthy level of foreign investment
\nhas yet to return to the country.<\/p>\n
\"The slow demand in the retail sector, however, was still
\ncaused by the limited availability of space in good quality
\n(shopping) centers,\" it said.<\/p>\n
It said that, with such a weak demand, there was no new supply
\nduring the first quarter of this year.<\/p>\n
But it added that projects under construction were progressing
\non time, and were expected to enter the market on schedule.<\/p>\n
Procon observed that change in rental prices in most sectors
\nwere largely due to the strengthening rupiah against the dollar
\nduring the first quarter.<\/p>\n
Procon said that the recent flooding had a negligible effect
\non the property market, because only the rental apartment sector
\nexperienced a short-term increase in absorbing displaced flood
\nvictims and relocating them to rental accommodation.<\/p>\n
The company added that there were no actual sale deals from
\nsome industrial estates, although they received more inquiries
\nthan usual from flooded industrial zones.<\/p>\n
Procon noted that, during the first quarter of this year,
\ncondominium prices were relatively stable, with only few
\npreferred projects increasing sale prices.<\/p>\n
It predicted that future availability in rental apartments
\nwould generally come from condominium units offered for lease,
\nwhile strata-title retail centers will continue to generate a
\nstrong presence in future retail supply.<\/p>\n
The company observed no fluctuation in prices for industrial
\nland after having declined slightly, although the buying up of
\nindustrial land this quarter was higher than the same period last
\nyear.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/property-market-remains-weak-1447893297",
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"sponsor": "Okusi Associates",
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