Demand for apartments stable in Jakarta
JAKARTA (JP): Fear of an oversupply in strata-title apartments in Jakarta is baseless because demand will continuously increase, especially when the construction of certain residential projects is completed, a property consultant says.
During the second quarter of this year, there was a substantial increase in the outstanding stock of multi-family housing units in the Jakarta market, a director of PT Procon Indah/Jones Lang Wootton, Susan Pranata, said in a press conference yesterday.
She said that her company's latest quarterly survey showed that the supply of apartments in Jakarta during the second quarter of 1995 increased by 1,460 apartments, or 32 percent, over the previous quarter's outstanding stocks of 4,500 apartments.
The survey also showed that the largest addition (1,015 apartments) was seen in the apartments offered under a strata- title arrangement. The new apartments brought the total supply of strata-title apartments to 2,570 as of the end of June.
Four hundred new apartments built for rental came onto the market in the second quarter.
The research report predicted that approximately 5,150 more apartments will be added to the rental market between the third quarter of 1995 and the fourth quarter of 1998.
It said that in the strata-title market, approximately 6,100 apartments are currently under construction and will be available by 1999, while 17,650 apartments are planned for construction.
The report said that demand for condominiums also increased in the second quarter. Lower rental rates and more flexible terms for their lease made them more attractive.
However, the occupancy level of condominiums fell by four points to 76 percent due to a more rapid growth in the supply.
Offices, hotels
Susan also said yesterday that the average occupancy rate of office buildings declined slightly to 91 percent at the end of the second quarter.
Current rentals for high quality office buildings average US$14 to $16 per square meter per month, while rentals for standard quality buildings range from $10 to $12.
The survey also showed that in the hotel industry, construction activities were still high, with many targeting completion by the end of this year.
Compared to the previous year's level, the consolidated occupancy rates of three-, four- and five-star rated hotels were up slightly during the first half of 1995, with a major improvement in the three-star hotel occupancy rates.
Developers continued to show interest in constructing new budget hotels in secondary locations. (icn)