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.