Jakarta to see ample property demand this year
Jakarta to see ample property demand this year
JAKARTA (JP): The city, along with other Asian cities, will remain one of the Asia-Pacific region's most dynamic property markets this year, according to the latest edition of Asia Pacific Property Trends.
"Demand for floor spaces remain particularly strong in Jakarta, Bangkok, Taipei, Manila and Kuala Lumpur," David Jackson, an editor of the quarterly publication, said in a statement over the weekend.
The publication, however, warns that a number of cities, including Jakarta, is increasingly saturated with office spaces due to the opening of large business district centers.
The publication, published by McGraw Hill, records that Jakarta added almost 180,000 square meters of office space in the second half of last year, and some 685,000 square meters are under construction.
It also records the largest office building purchases in the second half of last year as occurring in Tokyo, Seoul, Taipei, Singapore and Kuala Lumpur.
The largest transaction was Marubeni Corporation's purchase of its headquarters building in Otemachi, Tokyo, from Mitsubishi Estates for some $766 million.
When it comes to retail property, Jackson said, world-class retailers are taking differing strategies to obtain footholds in the most populous Asia Pacific markets.
Jackson, who is also Colliers Jardine's regional research director, noted that Jakarta is becoming amply supplied with retail floor space following a spate of major shopping center openings last year and a further 500,000 square meters scheduled to come on stream this year.
Industrial estates
When talking about the prospects of industrial estates, he said his company foresees increased requirements for industrial land and factories in much of the region due to strong production growth as well as an influx of foreign manufacturing companies.
"In Indonesia and the Philippines, industrial estates are developing rapidly to cope with the demand, while Malaysia is extending some of its industrial township developments," Jackson said.
In the hotel market, he noted that the region will enjoy an increase of foreign visitors. However, effective room rates will not increase significantly due to the opening of new hotels and the expansion of existing hotels.
Despite the already ample supply, the number of hotel room are set to increase this year by 20 percent in Jakarta, 10 percent in Kuala Lumpur and 8 percent in Bangkok.
The publication forecasts that effective room tariffs will be static in Thailand over the next 12 months and will tend to slip in Jakarta and Kuala Lumpur, particularly at the upper end.
On residential property, it says that Jakarta and Tokyo have a glut of supplies, especially in upper-market inner-city residential apartments. (rid)