Public demand for medium-class property to increase<\/p>\n
JAKARTA (JP): Demand for medium-class commercial property in
\nthe capital will increase, a consultant believes.<\/p>\n
The managing director of PT Procon Indah, Craig Williams, said
\nyesterday that property developers and operators will tend to
\nincrease sales of medium-class buildings, apartments and hotels
\nin areas outside the central business district.<\/p>\n
\"Most customers have less money to spend for high quality
\nbuildings,\" Williams said, quoting a newly published report
\nentitled \"Property Market Outlook.\"<\/p>\n
Procon Indah is an affiliate of a London based international
\nproperty consultant, Jones Lang Wootton (JLW), whose network
\nspreads over 42 cities. JLW publishes the report every six
\nmonths.<\/p>\n
Williams said that to meet the market trend, local developers
\nshould build office buildings on Jl. Warung Buncit and in the
\nSlipi area, both in South Jakarta, rather than in the plush area
\nalong Jl. Jendral Sudirman, Jl. Gatot Subroto and Jl. Rasuna
\nSaid.<\/p>\n
The report said that the average occupancy rate of office
\nbuildings in the city increased by over three percent to 90.2
\npercent in June 1994 as compared to the last report.<\/p>\n
It noted that no new office buildings were completed during
\nthe first half of this year and the total stock as of the end of
\nJune remained at 1.82 million square meters.<\/p>\n
Approximately 220,500 square meters of prime office space are
\ncurrently under construction and are due for completion in the
\nthird and forth quarters. The new office buildings include the
\nJakarta Stock Exchange Building, Bank Artha Graha, Mashill Tower,
\nBapindo Tower One and Mid Plaza Two, on Jl. Jendral Sudirman and
\nTimes Square on Jl. Rasuna Said.<\/p>\n
Apartments<\/p>\n
The report also revealed that the occupancy rate of rental
\napartments declined from 91.2 percent to 81.4 percent during the
\nfirst six months of this year, during which some 1,040 units in
\nSouth Jakarta entered the market, bringing total apartment
\nsupply, both rental and strata title ownership, to 3,970 units.<\/p>\n
An estimated 880 rental apartment units will be completed by
\n1997.<\/p>\n
In the hotel market, the report said that the opening of two
\nadditional first-class hotels, the 123-room Ibis Kemayoran and
\nthe 669-room Shangri-La, has increased market competition
\nsignificantly.<\/p>\n
It said that four new four-star hotels, including Travelodge
\nand Equatorial Hotel in North Jakarta, the Kartika Chandra Hotel
\nexpansion in South Jakarta and the Garden Hotel expansion in
\nNorth Jakarta, are projected to open in the third quarter of this
\nyear.<\/p>\n
\"The exact opening date of the Regent Hotel remains uncertain
\nbut it is likely to be in either late 1994 or early 1995,\" it
\nsaid.<\/p>\n
The report stated that the construction of a number of retail
\nplaces will soon be completed, including the Sunter Mall and
\nMetro Sunter Plaza, both in North Jakarta, as well as the
\nexpansion of the Arion Plaza in East Jakarta.<\/p>\n
Meanwhile, Williams said that red tape and bureaucracy still
\nhamper the development of the property industry.<\/p>\n
He said it is a common practice for a developer to go to three
\ndifferent authorities and get three different answers about
\nbuilding regulations.<\/p>\n
\"Inexperienced developers, particularly those who want to get
\nrich quickly, have also created significant problems,\" he said,
\nreferring to consumers' complaints of being cheated by
\ndevelopers.<\/p>\n
Susan Pranata, a director of Procon Indah, said that
\ndevelopers frequently exaggerate their products on brochures,
\npromising to use high quality materials and provide beautiful
\ngardens, telephones and excellent security.<\/p>\n
It turns out that they use cheap materials and don't provided
\nthe facilities promised. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/public-demand-for-medium-class-property-to-increase-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}