By Vivin Harsanto, the National Director and Head of Strategic Consulting at Jones Lang LaSalle Published in The Jakarta Post, May 3, 2013. Along with the government’s efforts to spread economic growth to all provinces, the property industry has been keeping a weather eye on the increased demand for residential and commercial estates outside Greater Jakarta. Megalopolitan Jakarta has been experiencing tremendous growth in urban development with improved infrastructure and increasing … [Read more...]
Time to Invest
With the increasing confidence in national economy, property industry is turning into the epitome of investment that provides natural hedge against inflation. Recalling the struggling years in the global property business, particularly in 2008 when the financial downturn overshadowed the world’s economies, Indonesia this year seems to be unscathed and the country remains optimistic about its future economic outlook. Compared to when the country was hit hard by the 1997 monetary crisis, the … [Read more...]
Demand for condominiums and office space to rise
The domestic property market has slowed down amid the global financial slump, with industry players erring on the side of caution as they anticipate the prevailing situation will last a while longer. Indeed, the current global crisis has led to economic uncertainties characterized by a pessimistic outlook on the global economy. While the US economy is fading, Europe has been marked by the collapse of big companies forcing demands for bankruptcy protection. A wind of change is blowing in the … [Read more...]
Indonesia’s property market fairly stable
The worsening global economic conditions have caused a slowdown to the property sector in many regions, and Asia Pacific is no exception. While this declining trend has hit every sector of the property industry nationwide as well as locally, the office sector is the one that has suffered the worst impact. The impact of this global downturn has put the lid on the growth of Asia Pacific's property sector. Generally, countries with the most developed financial institutions are among the most … [Read more...]
RI retail market remains optimistic despite hard times
Despite some optimism and efforts from governments worldwide to address the global downturn, the overall economic situation remains marked by uncertainties, as property investors maintain a *wait and see' attitude. In these tough economic conditions, higher competition and limited fund availability will impact on retailer expansion and put pressure on rental rates. Data from the first quarter of 2009 shows that the occupancy rate for the rental retail market in Jakarta is 85 percent, a 3 … [Read more...]
Global downturn sidelines Surabaya property on the slow road
Given the city's rapid development, the property market in Surabaya - the country's second largest city - should be on the upbeat. Nevertheless, the current global economic downturn has taken Surabaya's property market in a different direction and on a slower road. The Surabaya office market has been pretty quiet during 2008. The grade A strata title Graha Bukopin was the only new office building completed. It contributed an increase of only 14,000 sqm to the total cumulative supply of office … [Read more...]
Property outlook at a time of global crisis
Indonesia's economic indicators have been unimpressive with the depreciation of the rupiah by more than 14 percent since the third quarter 2008. The Jakarta Composite Index in October fell to 1,355 points whilst inflation soared to around 11 percent by end of December. The excellent performance of Indonesia's exports has buoyed Indonesia's economic growth to remain steady at 6.2 percent from a year earlier, well within the government's target. With the deepening global financial crisis … [Read more...]
Procon: Prelaunch property prices: Intricate, yet lucrative for some
During the course of the ongoing global economic crisis, people will naturally come to ask whether it is wise to consider property investment. The property sector will take a hit, no argument there, but keep in mind that opportunity presents itself to those who seek. One of the lesser known property investment opportunities, which tends to be overlooked, is buying at a pre-launch price. This type of buying -- when the project itself is still on paper -- is not so favorable, as it is as risky as … [Read more...]