Investment of Industrial Estate Sighted by Property Investors

By : Hariyanto And Aldi Firhand. A | Tuesday, April 24 2018 - 20:36 IWST

Illustration of Gandus Palembang Industrial Estate
Illustration of Gandus Palembang Industrial Estate

INDUSTRY.co.id - Jakarta - Property consultant Colliers International said property investors in Indonesia in the future will continue to focus more on finding property in industrial areas and housing scattered in some areas.

"In the previous quarter, the Indonseia market has seen some significant investment transactions, particularly in the housing and industrial sectors," said Steve Atherton, Director of Capital Markets and Investment Services at Colliers International Indonesia, in a release in Jakarta on Tuesday (24/4 / 2018)

According to him, in the following quarter, Colliers International believes that the industrial and residential sectors will remain the primary focus of many investors.

This, he added, also caused among many parties who wonder from a number of foreign investors to enter the property market in Indonesia.

Previously in the hospitality sector, Colliers International highlighted the tight competition of the hotel industry in a number of tourist areas in Indonesia because the growth of new hotels is not in line with the growth of hotel room demand by tourists.

"The supply will decrease until 2020 due to tight competition in the hotel industry and the growing demand for hotel rooms is not as fast as hotel growth," Senior Associate Director Colliers International Ferry Salanto said.

According to Ferry, in terms of supply, in the first quarter of 2018 in Jakarta only slightly increased because there is only one hotel that will operate in the first quarter of 2018. In terms of demand, he said, the occupancy rate of the beginning of the year decreased according to the pattern because not many business activities took place in the Capital.

However, he argues that occupancy rates are increasing due to shifting activities, especially from governments, pre-Asian Games, IMF annual meetings, and preparations for the 2019 presidential election.

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