Jakarta shows strong growth
JAKARTA'S landlords had a busy end to 1992, with office take-up accelerating by 50 per cent in the second half of the year, according to Colliers Jardine's Asia Pacific Trends.
The research report found the demand was driven partly by incentives - which had enticed many tenants to upgrade or consolidate - and by the government's policy to encourage exports.
''This has created further demand for office space from the manufacturing sector, mining and energy companies and financial institutions,'' said Mr Roger Cook, chief executive officer of Colliers Jardine.
''As 1993 begins, the office vacancy rate will be around 12 per cent, due to the completion of a large number of new buildings.
''New supply for 1993 will be more than two million square feet but, with increasing demand, it is likely that vacancy levels will drop to 10 per cent by the end of 1993.'' Mr Cook said office rentals had bottomed and would remain at much the same level throughout 1993, with a return to rental growth in the first or second quarter of 1994. The next market peak would occur in about 1996.
Jakarta's stock of modern shopping centre space is about 7.8 million sq ft, with average occupancy around 90 per cent.
''Currently, the average rental for ground floor retail space is $2 to $3.3 per square foot, however, rents in those shopping centres opening during 1993 will be lower at $1 to $3,'' Mr Cook said.
The recent opening of a discount warehouse operation has attracted a lot of attention.
''This has affected the industrial property market, although industrial estates within the Jakarta area have been more resilient to the downturn,'' Mr Cook said.
Issued on behalf of Colliers Jardine by Lau Roots Limited.