A number of foreign developers have laid eyes on Indonesia’s
property market owing to the country’s massive population and economic growth
of 5.5% - the highest of South East Asia.
It has been reported, investors from China, Korea, Malaysia and Singapore have expressed interests in extending property businesses to Indonesia. The property project types they are interested in, vary from residential projects including apartments to commercial projects, such as shopping centres and industrial estates.
For example, the Singaporean based Pacific Star Holdings Pte Ltd., intends to manage one property project in the Sudirman Central Business District (SCBD) in Jakarta and another one in Bali.
This is as they cited data from the United States Trade Department, highlighting that Indonesia quarters the world’s fourth-most populous country with 253.60million people, as the reason for investing towards the country’s property sector. It selected Jakarta as the project site, owing to the city’s profitable nature for property development.
Keppel Land’s property projects include the BG Junction of Surabaya, the Financial Tower in Sudirman, Nongsa Point Marina in Batam, Ria Bintan Golf in Bintan and the Taman Pasadenia apartments of East Jakarta.
The Soilbuild Group Holdings is collaborating with established local developers on a supermall project in Surabaya.
A Singaporean business wing, Ascendas offers a partnership scheme with local land owners to develop a variety of property projects such as industrial estates.
Commercial property
Meanwhile, Japanese developer Tokyu Land intends to manage a
property project within South Jakarta’s Mega Kuningan area. It focuses on the evolution
of commercial properties, including retail and shopping centres and high-rise
residential projects.
The company had long targeted Mega Kuningan as a potential site for its property project development, owing to the region’s strategic function as the Jakarta centre’s business activities – Ideal for Tokyu Land.
High class commercial property projects have been developed so far in the Setiabudi region, in co-operation with PT Jakarta Setiabudi International. Mega Kuningan is now a highly popular business district within Jakarta by local and international developers alike. However, there is still a plenty of available land at competitive prices. Actual land prices are between Rp50million (US$4,217) and Rp70million per square metre as the price of land within the Thamrin and Sudirman corridors in Jakarta are around Rp100million per square metre.
Pacific Star invested US$300million for the development of a mixed use property project in Jakarta’s Sudirman Central Business District. A further US$100million has also been invested to develop a resort project, hotel and villa in Bali.
The Pacific Star chief operating officer and president claimed the company was co-operating with local partners to access the Indonesian market.
In the upcoming three or four months, the company are to sign a memorandum of understanding (MoU) with the local partners. This is as they are currently working with Indonesia’s medium-sized developers, with plans to develop mixed-use property, to consist of apartments, hotels and office buildings.
Tokyu Land intend to construct condominiums and serviced apartments in Mega Kuningan, already owning a land bank. The width of the land was not disclosed.
Aside from property projects that the two developers are keen on, Jakarta also holds for office building development.
As reported by Colliers International Indonesia, office development business in Jakarta has generated great profits, showing positive performance visible through high occupancy rates with rental prices. The occupancy rate hit 95% as rental prices have hit Rp60million per square metre.
It has been said 29million Indonesians are within their productive age, indicating potential for Indonesia’s property sector, which will continue to experience positive growth, as revealed by the Indonesian Stock Exchange.
Furthermore,
Indonesia’s rewarding market for property projects also owes to its relatively secure
and stable political climate.
No comments:
Post a Comment