Jakarta's property market has been hit by the impact of the global financial crisis since the first quarter this year as demand faltered, real estate services firm Jones Lang LaSalle says.
Demand for office, retail and residential spaces slackened as companies reportedly rescheduled or delayed their expansion plans, and housing loans remained expensive despite the central bank's aggressive cut, affecting investors’ appetite.
The decline in demand led to a drop in office inquiry over the last three months, while a slow recovery in consumer's purchasing power hampered retailer expansion, the firm said in a report Tuesday.
Banks had not immediately cut their housing loan rates following the central bank's drastic benchmark interest rate cut, impacted both end-users and investors’ appetite to purchase residential units in the first three months of 2009.
Despite the slump, the government forecast the economy to expand about 4.6% in the first quarter this year.
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