Sales of industrial estates remain flat, analyst says
Sales of industrial estates remain flat, analyst says
JAKARTA (JP): Sales of industrial estates in Bekasi, Karawang
and Purwakarta in West Java remained flat in the first quarter of
this year due to persistent uncertainty over the country's
political and financial situation, a report says.
Property consultant PT First Pacific Davies Indonesia (FPDI)
said the areas' industrial estates had few tenants in the January
to March period.
The company, which recently conducted a survey on the
industrial estates in the three locations, said estate sales had
been much lower than in the first semester of last year.
"The four biggest industrial estates, with a combined area of
3,500 hectares, sold 110 hectares in the second semester of 1997,
which is equivalent to 50 percent of the total sales for 1996,"
the company said.
The company said land prices at the industrial estates in the
three cities remained stable at US$76 per square meter before
taxes.
According to the property consultant, the sluggish sales were
due to the fact that many prospective tenants were taking a "wait
and see" attitude rather than signing contracts.
The company said these investors were concerned over the
country's efforts to improve the ailing economy.
"Most investors questioned whether Indonesia would implement
the International Monetary Fund's (IMF) economic reform package
or if the country would follow other measures to rescue its
ailing economy," the report said of the prospective tenants
asked.
The government and the IMF are currently working to amend the
country's economic reform programs to heal the economy.
Conclusion of the talks is expected to be announced later this
week or early next week.
The property consultant firm also said the crisis affecting
the region was also to blame for the stagnant industrial estate
sales in the greater Jakarta area.
The company said 73 percent of the estates' established
tenants were from Asia, while 18 percent were domestic, 1 percent
were Australian, 3 percent were American and 5 percent were
European. (aly)