May 22, 1999
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| May 22, 1999 | atimes.com | |
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| Southeast Asia Jakarta retail property market posts positive 1st-quarter growth JAKARTA - The retail property market in Jakarta recorded positive growth in the first quarter of this year. While that might indicate that the crisis in this property subsector has bottomed out, the Jakarta Post quoted property consultant Procon Indah/Jones Lang LaSalle as saying that, nevertheless, overall demand for retail space for the whole year of 1999 is predicted to keep declining due to lingering political uncertainties centering around the general election next month and presidential election in November. Procon Indah said that occupancy rates in Jakarta's prime and secondary reatil spaces grew by 2.5 percentage points to 82.8 percent in the first quarter of 1999. The main driver of the increasing demand for retail space in the quarter was the stabilizing rupiah, which boosted consumer confidence. Stores in popular shopping centers recorded a 10 percent to 15 percent increase in sales in the first quarter from the last quarter in 1998. According to the company, the stabilizing rupiah plays an important role in driving consumer confidence. ''Once the rupiah drops again, the retail market will also drop,'' it said. The rupiah has been stable at around 8,500 against the U.S dollar in the first quarter of 1998. Currently the rupiah is trading at 8,000 to the dollar. Demand for retail space in Jakarta's prime and secondary areas grew by 27,800 square maters in the first quarter, after declining by 157,000 square meters through the whole year of 1998. Rental rates for retail space remained stable in the quarter, averaging $35 for space in secondary locations. Procon Indah predicted that retail space occupancy rates would drop again to 78 percent by the end of 1999. (Asia Pulse/Antara) | |||||||||
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