Jakarta residential market to remain sluggish this year
Jakarta residential market to remain sluggish this year
The Jakarta Post, Jakarta
The residential property market in the greater Jakarta area will remain sluggish this year amid continuing economic hardship and a poor investment climate in the country, according to property consultant PT Colliers Jardine Indonesia.
"The residential market in Greater Jakarta is showing slower growth due to the unfocused economic recovery mixed with an unstable investment climate in Indonesia," the firm said in a report released here on Monday.
The report said that the slow economic recovery process had made people reluctant to invest in the local property market.
"There were about 4,800 strata-title apartment units unsold throughout Jakarta in the fourth quarter (of last year)," it said.
Colliers added, however, that uncertainties at home had prompted those from the upper-income bracket to look overseas to invest in the residential property market.
Elsewhere, Colliers said that the strata-title apartment supply was stable at about 24,295 units in the fourth quarter with some 320 new units entering the market with the completion of Muara Indah Apartment in North Jakarta.
It said that about 46 percent of strata-title apartment developments were located in Central Jakarta, 22 percent in West Jakarta, while North and South Jakarta accounted for 19 percent and 12 percent respectively.
Colliers said that a number of apartment developments had reached the finishing stage, including Four Seasons Apartment and Pavilion Park Apartment.
It said that the completion of these two developments in 2002 would add some 486 units, increasing supply by 2 percent to 24,781 units.
It said that the occupancy rate for strata-title apartments reflected some optimism in the market with a slight increase to 78.90 percent.
Meanwhile, Colliers also said that some 100 new units would come onto the Jakarta leased apartment market this year.
It said that Golf Pondok Indah Apartment located in South Jakarta would launch 100 new units this year.
"It is now an increasing trend for expatriates to lease apartments instead of houses due to security and personal safety concerns in Jakarta," Collier said.