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Industrial land demand in Greater Jakarta reaches new low
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Cushman & Wakefield Indonesia has reported a drop in the sales rate of industrial land in the second quarter of the year to 67.3 percent, a decrease from 72.8 percent during the same period last year. (Courtesy of http://www.cushmanwakefield.co.id/-)
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roperty sales in industrial parks throughout Greater Jakarta have plunged, reaching a new low of approximately 13.4 hectares in the second quarter of 2016, down from 144 hectares in the same quarter last year, according to a property consultant.
Cushman & Wakefield Indonesia has reported a drop in the sales of industrial land in the second quarter of the year to 67.3 percent, decreasing from 72.8 percent during the same period last year.
“So, developers should be cautious before opening a new industrial estate, as the sales rate of the industrial land from existing projects is quite low,” said Arief Rahardjo, Cushman & Wakefield director of research and advisory services, in Jakarta on Thursday.
Cushman & Wakefield Indonesia’s survey shows a net demand decrease of about 31 percent quarter-on-quarter, with an average purchasing size below 2 hectares per transaction.
“It has continued to decrease because major industrial factories have yet to enter the country, especially in Bekasi or Karawang [West Java], where automotive companies have often built their factories,” Arief said.
However, the consultancy company reported that industrial estates in the Bekasi and Karawang corridors still dominated transactions, with around 60 percent of the total industrial estate purchases occurring there. Other demands were absorbed by industrial estates in Serang, Banten. (vps/ags)
