Rebecca Foster | Dec 06, 2012 | Comments 0
Economic growth in Indonesia has attracted property investors to Jakarta
In a survey conducted by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI), Jakarta has beaten out other cities in the Asia-Pacific region to seize the crown as the number one destination for real estate investors. According to the survey, entitled Emerging Trends in Real Estate Asia Pacific 2013, Jakarta knocked Singapore down from the top spot it has occupied for the last two years, to third place in the rankings.
Today online reports that Colin Galloway, author of the report and ULI's research consultant stated that, "The main issue in Singapore is a glut of new supply that's arrived just as financial sector firms have been shedding headcount… That has led to rising vacancies and falling rents, making the market less attractive for new buyers."
However, Jakarta is now viewed by over 400 industry experts that took part in the survey as a top destination for property investment and development opportunities, particularly in retail and office sectors. The city's rise to the top position from its previous mid table ranking has been propelled by robust investor interest linked to Indonesia's economic expansion. Indeed, one of the developers who took part in the Emerging Trends survey stated, "It's really boom times in Indonesia now".
On the plus side for Singapore, its new third place position still suggests a positive reaction towards the Republic's property sector for the coming year. The ULI's report emphasised that property investors still see the market in Singapore as a safe haven with genuine returns that are highlighted by the city's status as a global financial centre. Despite this, the report suggested that Singapore should expect further struggles in drawing in real estate investors, as it could potentially lose out to other countries around the region that can offer superior profits, like Cambodia and Myanmar.
Filed Under: Country News • Indonesia • News • Singapore
Article source: http://www.thethailandlinks.com/2012/12/06/jakarta-beats-out-singapore-as-top-spot-for-investors/
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