Property projects put on hold as crisis worsens
Property projects put on hold as crisis worsens
JAKARTA (JP): Economic and political uncertainty in the
country has put more commercial property projects on hold in the
second quarter of this year, according to property consultants
First Pacific Davies Indonesia (FPDI).
The company said that many projects stopped as economic and
political uncertainty mounted.
"The majority of projects have been suspended for an
indefinite period, while others have slowed down and have revised
completion dates," the company said in its latest study.
According to the study, the retail sector has been worst hit,
with almost all new retail projects put on hold until 2000.
The company said that 93 percent of the total of 473,862
square meters of retail developments that were planned have now
been suspended.
There is, however, 31,000 square meters still under
construction, although the rate of progress has slowed
considerably, the report said.
In the office sector, 1.03 million square meters or 66 percent
of confirmed developments have been put on hold. Delayed projects
are expected to increase to 84 percent of confirmed developments
by the end of 2000.
About 57 percent of the confirmed supply of apartments, some
14,943 units, are currently on hold. Within the next two years
the number of suspended projects will increase and an extra 3,857
units consequently put on hold. The total number of delayed units
will then amount to 72 percent of the confirmed supply.
In the hotel sector, most of the projects put on hold are
four-star hotels. Seventy two percent of three-star hotel
developments have continued with construction.
Of all confirmed hotel projects to 2000, delayed developments
now represent 4,350 rooms, or 54 percent of the confirmed supply.
The number of delayed hotel projects is expected to increase
to the equivalent of 5,018 rooms, or 62 percent of the confirmed
supply for the next two years, the report said.
Hotel projects that are currently on hold consist of 1,483
five-star rooms, 2,416 four-star rooms and 450 three-star rooms.
The study shows that only 193,244 square meters of office
space will be added to the city during the rest of this year,
including 10,500 square meters of strata titled offices, 51,190
square meters of leased premises, and 131,554 square meters of
strata/leased projects.
Two office projects, Gedung Data Script and one tower of Taman
Perkantoran Kuningan, are due to open in the second quarter of
this year.
In the residential sector, Puri Imperium came on stream this
month, and FPDI estimates that 6,800 new units will enter the
market over the remainder of this year.
A total of 5,935 strata titled units, 108 leased units and 784
serviced units made up the new apartment units supply.
Of these units, 90 percent are located outside the central
business district.
The totals include Kempinski Plaza and Eksekutif Menteng III
and IV which are due to be completed shortly.
Because many of the hotel projects are already well advanced,
construction is continuing as planned.
The study estimates that by the end of this year, the central
business district will have an additional 360 five-star rooms and
287 four star-rooms.
Other areas of the city will gain an extra 915 four-star rooms
and 441 three-star rooms.
The hotels include the five-star Kempinski and The Park Lane,
and the four-star Menara Peninsula, all of which are expected to
open in this quarter. (das)