Magazines Archives - 2011 June

Retail real estate spurs growth in Indonesia’s property scene.
Story 9 - Property Update

INDONESIA’S property sector is expected to grow 10% this year, as supply and demand continues to grow, supported by the increase in retail and office space with the opening of new malls in the country.

Despite a projected 4%-6% inflation in the country this year, Tommy Bastamy, senior vice-president of research and consultancy at Coldwell Banker Indonesia, said that the local retail sector is expected to see a 5% growth in 2011, with the opening of new malls in Jakarta, namely Agung Podomoro’s Kuningan City and the Ancol Entertainment Center. These will inject about 110,400sqm of retail space into the market.

Additionally, local retailers are hoping to expand this year, with Mitra Adiperkasa expected to invest about Rp350 billion (US$40.8 million) in as many as 1,000 new store openings across the country.

Bastamy continued: “Retail properties will grow well this year because there will be increases in both supply and demand … Even with increasing inflation, people do not seem to be worried because per capita income is increasing and minimum wages are continuously increasing.”

He added that demand for retail property nearly halved to about 88,000 units last year, 168,000 in 2009, while supply only came to about 99,000 units, slipping from 228,000 units in 2008. ra

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