Jakarta property market stagnates amid election, mall moratorium

Nadya Natahadibrata

The Jakarta Post

Publication Date : 17-07-2014

The property business, particularly office and retail space, in the capital city of Indonesia has recorded stagnant growth during the first half of this year compared with the same period last year, due to the legislative and presidential elections and the ongoing moratorium on mall development by the Jakarta administration, property consultants say.

Between January and June, the total net absorption reached 37,500 square metres (sqm), far below last years absorption during the same period at 213,400 sqm, according to data from Jones Lang LaSalle (JLL).

[The lower absorption figure] is due to the anticipation of the election result, JLL research head Anton Sitorus said in a press briefing on Wednesday.

Most of the absorption in the first half was achieved from April to June, amounting to 21,500 sqm.

Data from Cushman and Wakefield showed a similar trend, with managing director David Cheadle saying that the general and presidential elections, on April 9 and July 9 respectively, had resulted in a wait-and-see attitude among tenants.

Cheadle also attributed the low takeup to the zero supply in the office market during the second quarter of the year.

See the original post:
Jakarta property market stagnates amid election, mall moratorium