U.S. attacks shatter hopes for property sector<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The global economic and political turmoil that occurred after
\nthe terrorist attacks on the United States on Sept. 11 has
\nshattered expectations of a recovery in the country's property
\nmarket in the third quarter of this year, a property analyst has
\nsaid.<\/p>\n
Director of PricewaterhouseCoopers' (PwC's) property division
\nKatherine Harberd said that after gloomy conditions in the first
\nhalf of the year, the country's property market had showed more
\noptimism at the start of the third quarter, following the
\nimprovement in macroeconomic indicators after the election of
\nPresident Megawati Soekarnoputri.<\/p>\n
However, she said, the positive sentiments had been shattered
\nby the September attacks.<\/p>\n
The U.S. retaliatory attacks on Afghanistan and the anti-U.S.
\nrallies in the country had affected investor confidence in the
\ncountry's investment prospects and dashed hopes for a recovery in
\nthe property sector, she said in a statement.<\/p>\n
Jay Smith, PwC's technical adviser, said that recovery of the
\nproperty market would depend on stable economic and political
\nconditions, both nationally and globally.<\/p>\n
However, he warned people against jumping to conclusions too
\nquickly that the property business in the country would suffer
\nnext year because of the tragic attacks.<\/p>\n
\"Perhaps a 'wait-and-see' approach is the best way to predict
\nthe market in 2002. The global economy was already slowing down
\nwhen the attacks occurred. Therefore, it will simply slow down a
\nbit more,\" he said during a meeting with media on Wednesday, at
\nwhich he released the company's third-quarter property market
\nreview.<\/p>\n
\"Certainly it's slowing down in the office sector, but we have
\nto wait for further developments if we want to forecast the
\nsector for next year.\"<\/p>\n
According to PwC, the occupancy rate in Jakarta's office
\nmarket stood at 78 percent in the third quarter, or only 0.6
\npercent higher than the previous quarter.<\/p>\n
Another property analyst, Koll IPAC, which also released its
\nthird-quarter review on Wednesday, said the occupancy rate in
\nJakarta's office sector relatively remain stable.<\/p>\n
It noted, however, a rise in demand for space in the retail
\nsector, which, it said, remained \"a winner in the Jakarta
\nproperty market\" for this year.<\/p>\n
\"In line with the public's improved purchasing power, demand
\nfor retail space has also increased. The vacancy rate decreased
\nto seven percent in 2001 and should drop further to five percent
\nin 2002.\"<\/p>\n
\"During the last three years, foreign retailers, in
\nparticular, have indicated their interest in opening outlets in
\nJakarta and this trend should continue in 2002,\"<\/p>\n
In the industrial sector, Koll IPAC said that demand remained
\nstagnant in the third quarter of the year, as industrial users
\nhad applied a \"wait-and-see\" approach, due to concern about
\nsecurity and labor issues.<\/p>",
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"sponsor": "Okusi Associates",
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