RumahHokie.com (Jakarta) – The Indonesian economy remained stable in the third quarter of 2018. Gross Domestic Product (GDP) is projected to have grown within the range of 5.1% to 5.25%.
The stock market composite index increased 2.7% over the same 3-month period, closing at 5,958 on September 21st.
On the currency side, the Rupiah depreciated further by 5.5% to reach Rp14,799 per USD1.00. Year-to-date inflation was recorded at 2.13%, slightly lower than 2.53% in the same period last year.
Cushman & Wakefield, global commercial real estate services company, reported industrial estate in Greater Jakarta (Jabodetabek) experienced a slowdown in demand during Q3 2018.
With a relatively slow market, quarterly demand continued to decrease from 34 hectares to 24.6 hectares this quarter (-27% QoQ).
Arief Rahardjo, Director of Research at Cushman & Wakefield Indonesia explained, the year on year (YoY) demand more than doubled from 10.73 Ha (lowest demand over the last decade) in Q3 2017 to 24.6 hectares this quarter.
“With this recurring trend, the market is expected to pick up in Q4. Estates in the eastern corridor remained as the preferred area, especially in Karawang, and dominated 50% of the total net demand in the review quarter,” Arief Rahardjo said.
Price Remain Under Pressure
Along with the soft demand, prices remain under pressure. Prices in both IDR and USD, the prices decreased by 0.5% and 5.8% (QoQ) during the review quarter, averaging at Rp2,643,000 per square meter.
On the other hand, demand on industrial estate in Greater Jakarta also decreases by 38% (QoQ) while sales rate was at 70.1%.
Cushman & Wakefield noted, currently the industrial area in Bekasi has the largest land area of 4555 hectares, followed by Karawang and Purwakarta (3389 hectares), Serang (2855 hectares), Jakarta (1089 hectares), Tangerang (772 hectares), and Bogor (80 hectares).
Meanwhile, the most expensive industrial land is in Jakarta with an average price of IDR 5750,000, followed by Bekasi (IDR 2,635,708), Tangerang (IDR 2,600,000), Bogor (IDR 2,000,000), Karawang and Purwakarta (IDR 1,968,830), and Serang (Rp1,675,000).