Shopping center boom continues<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
At least seven new shopping centers plan to start operating in
\nthe last quarter of the year throughout Greater Jakarta, adding
\nsome 140,000 square meters of retail space in the area, a
\nproperty consultant said.<\/p>\n
The shopping centers are ITC Kuningan, Plaza Ciputat, Senayan
\nTrade Center, Plaza Kelapa Gading, Kelapa Gading Mall III,
\nCilandak Town Square and Citra Gran Mall, PriceWaterhousCoopers
\n(PwC) said in its latest property market analysis.<\/p>\n
As of Sept. 30, total retail space in the Greater Jakarta
\narea, locally called Jabotabek, is more than 1.8 million square
\nmeters, including 1,448,000 square meters in Jakarta proper and
\n370,000 square meters in the surrounding towns of Bogor,
\nTangerang and Bekasi.<\/p>\n
Of the total 1,448,000 square meters of space in Jakarta, 1.25
\nmillion square meters are leased spaces, while the remaining
\n198,000 square meters are strata title spaces, PwC said.<\/p>\n
\"More new centers are planned, mostly with long lease or
\nstrata concepts, and some in mixed use developments such as
\nshophouses or apartment complexes.<\/p>\n
\"If all planned projects are realized, there will be at least
\n800,000 square meters of new shopping centers in Jabotabek
\nbetween late 2002 and 2005,\" PwC said.<\/p>\n
Despite the lingering economic crisis, the retail sector has
\nbeen on the rise over the past several years on the back of the
\npublic's strong consumption, which is also seen as the remaining
\nkey driver of the country's economic growth amid declining
\nexports and investment.<\/p>\n
The sector is the only one in the property market showing
\nprogress amid the economic crisis as the office, apartment and
\nhotel sectors remain in the doldrums.<\/p>\n
PwC noted that amid optimism over public consumption growth,
\nseveral hypermarket operators were set to expand their businesses
\nthis quarter and next year.<\/p>\n
French superstore chain Carrefour will open its tenth store in
\nITC Kuningan this quarter, while Giant, which opened its first
\nstore in Serpong in August this year, will open its second store
\nin Maspion Square Surabaya this quarter and its third store in
\nMega Bekasi Hypermall by 2003. Giant is wholly owned by publicly-
\nlisted PT Hero Supermarket.<\/p>\n
PwC said occupancy rates remained stable in Jabotabek shopping
\ncenters at 93.7 percent in the third quarter of the year,
\ncompared to 93.6 percent in the second quarter.<\/p>\n
In the office sector, several new buildings, including IKPT,
\nGraha Seti II and Ratu Prabu, will open in the last quarter of
\nthe year in Jabotabek, adding more supplies to the already over-
\nsupplied market.<\/p>\n
In the apartment sector, which has also been dealing with
\noversupply problems for years, a total of 115 new units entered
\nthe market in the third quarter of the year with the opening of
\nApartment Golf Pondok Indah 2.<\/p>\n
In the hotel sector, the Jabotabek market saw the opening of
\nDanau Sunter Hotel in the third quarter and will see the opening
\nof several new hotels, including Hotel Maharani and the Hotel
\nPresident extension (Nikko Tower). These two hotels will add
\napproximately 282 rooms to the total which is currently 21,550
\nrooms.<\/p>\n
PwC said the Bali bombing three weeks ago would certainly
\naffect the hotel sector, which, despite a rise in occupancy, saw
\na decline in room rates in the third quarter.<\/p>",
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"sponsor": "Okusi Associates",
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