Knight Frank analyst warns of potential bubble in Jakarta, Bali property Kontan
(Insider Stories)-Indonesian real estate hasn’t yet shown clear signs of a bubble despite increasing capital flows, but Knight Frank analyst Hasan Pamudji has become the latest market watcher to add to a cautious tone on the sector, Kontan newsportal Tuesday.
Knight Frank projects Jakarta office space to rise by 744,862 square meters through 2014 with demand estimated at 350,000 square meters while for Bali, it expects hotel rooms to increase by 13,683 in the period, but notes Bali hotel occupancy rates fell to 65% in 2012, 15% lower than in 2011.
Last year, Cushman & Wakefield also warned of the risk of bubbles developing, particularly in Jakarta condo prices. It forecasts new supply of 20,447 condominium units this year, significantly above the five-year average increase of 8,468 units a year.
Full story:
http://industri.kontan.co.id/
