Property projects put on hold as crisis worsens<\/p>\n
JAKARTA (JP): Economic and political uncertainty in the
\ncountry has put more commercial property projects on hold in the
\nsecond quarter of this year, according to property consultants
\nFirst Pacific Davies Indonesia (FPDI).<\/p>\n
The company said that many projects stopped as economic and
\npolitical uncertainty mounted.<\/p>\n
\"The majority of projects have been suspended for an
\nindefinite period, while others have slowed down and have revised
\ncompletion dates,\" the company said in its latest study.<\/p>\n
According to the study, the retail sector has been worst hit,
\nwith almost all new retail projects put on hold until 2000.<\/p>\n
The company said that 93 percent of the total of 473,862
\nsquare meters of retail developments that were planned have now
\nbeen suspended.<\/p>\n
There is, however, 31,000 square meters still under
\nconstruction, although the rate of progress has slowed
\nconsiderably, the report said.<\/p>\n
In the office sector, 1.03 million square meters or 66 percent
\nof confirmed developments have been put on hold. Delayed projects
\nare expected to increase to 84 percent of confirmed developments
\nby the end of 2000.<\/p>\n
About 57 percent of the confirmed supply of apartments, some
\n14,943 units, are currently on hold. Within the next two years
\nthe number of suspended projects will increase and an extra 3,857
\nunits consequently put on hold. The total number of delayed units
\nwill then amount to 72 percent of the confirmed supply.<\/p>\n
In the hotel sector, most of the projects put on hold are
\nfour-star hotels. Seventy two percent of three-star hotel
\ndevelopments have continued with construction.<\/p>\n
Of all confirmed hotel projects to 2000, delayed developments
\nnow represent 4,350 rooms, or 54 percent of the confirmed supply.<\/p>\n
The number of delayed hotel projects is expected to increase
\nto the equivalent of 5,018 rooms, or 62 percent of the confirmed
\nsupply for the next two years, the report said.<\/p>\n
Hotel projects that are currently on hold consist of 1,483
\nfive-star rooms, 2,416 four-star rooms and 450 three-star rooms.<\/p>\n
The study shows that only 193,244 square meters of office
\nspace will be added to the city during the rest of this year,
\nincluding 10,500 square meters of strata titled offices, 51,190
\nsquare meters of leased premises, and 131,554 square meters of
\nstrata\/leased projects.<\/p>\n
Two office projects, Gedung Data Script and one tower of Taman
\nPerkantoran Kuningan, are due to open in the second quarter of
\nthis year.<\/p>\n
In the residential sector, Puri Imperium came on stream this
\nmonth, and FPDI estimates that 6,800 new units will enter the
\nmarket over the remainder of this year.<\/p>\n
A total of 5,935 strata titled units, 108 leased units and 784
\nserviced units made up the new apartment units supply.<\/p>\n
Of these units, 90 percent are located outside the central
\nbusiness district.<\/p>\n
The totals include Kempinski Plaza and Eksekutif Menteng III
\nand IV which are due to be completed shortly.<\/p>\n
Because many of the hotel projects are already well advanced,
\nconstruction is continuing as planned.<\/p>\n
The study estimates that by the end of this year, the central
\nbusiness district will have an additional 360 five-star rooms and
\n287 four star-rooms.<\/p>\n
Other areas of the city will gain an extra 915 four-star rooms
\nand 441 three-star rooms.<\/p>\n
The hotels include the five-star Kempinski and The Park Lane,
\nand the four-star Menara Peninsula, all of which are expected to
\nopen in this quarter. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/property-projects-put-on-hold-as-crisis-worsens-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}