Retail Property Rate in Indonesia Reached the Lowest Point

By : Ridwan And Aldi Firhand. A | Wednesday, October 04 2017 - 23:15 IWST

Illustration of Property Decline
Illustration of Property Decline

INDUSTRY.co.id - Jakarta, the property consultancy agency Colliers International, released its property retail occupancy rate in Jakarta to its lowest point in a decade, reaching 83.8 percent in the third quarter of 2017, down 2.3 percent from the previous quarter.

"It is true that there is a decrease in retail property occupancy rate," said Senior Associate Director of Research Colliers, Ferry Salanto in a press conference at WTC I Building, Jakarta, Tuesday (3/10/2017).

Ferry revealed, occupancy declined due to increased supply of property in the retail sector is not proportional to the increase in demand. This condition is in line with the decline in the ranking of Indonesia's retail sector from rank 5 in 2016 to rank eighth in the Global Retail Development Index. In fact, retail sales in general bloom 8.02 percent in annual calculations.

If detailed, continued Ferry, occupancy retail sector property in the business center (CBD) only reached 87.8 percent. However, this figure is still higher than the level of out-of-pocket area outside the CBD which is only 82.2 percent. In terms of supply, the available lease area increases with the closure of a number of retail stores in shopping centers.

Property supply in the retail sector also grew from several shopping centers expanding, as well as operating. One of them, Aeon Mall Jakarta Garden City shopping center which adds 68 thousand square meters. "Expansions expanded the property supply in the retail sector to 4.63 million square meters," he said.

On the demand side, several new retail outlets, especially in fashion and culinary, began operations in Jakarta. Approximately 60 percent of lease transactions come from clothing stores and accessories for babies and children, sports equipment, bags and shoes. Culinary trailing in the range of 30 percent, and the rest comes from beauty and jewelry beauty products.

News Comment

Today's Industry

Wellington College Independent School Jakarta (WCIJ)

Senin, 29 April 2024 - 05:02 WIB

One of the UK’s Most Established Schools Chooses Jakarta for Their Latest Opening

Wellington College Independent School Jakarta (WCIJ) is thrilled to announce its grand opening in September 2024! As the first private UK school to open in Indonesia, WCIJ, a pioneering co-educational…

Presiden Jokowi

Selasa, 23 April 2024 - 10:29 WIB

President Jokowi Reaffirms Commitment to Farmers’ Welfare

President Joko “Jokowi” Widodo on Monday (04/22) inspected corn harvest in Boalemo regency, Gorontalo province. “Our corn import has decreased significantly from 3.5 million tonnes to…

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…