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SG Indonesia's property market to slow: Jones Lang

Property Here - Monday, October 21, 2013

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Demand for residential apartments and office units in Indonesia’s capital is expected to drop in the coming months as potential buyers adopt a wait-and-see approach amid stricter lending requirements, the declining rupiah and as they wait for new policies from the incoming government after next year’s election, revealed Jones Lang LaSalle.

Luke Rowe, Senior Technical Adviser for Residential Project Marketing at Jones Lang LaSalle, said: “We will see tempered rates of growth in rents and property prices for this year.”

He added: “We were talking about property bubbles not long ago. That is an unlikely scenario.”

Based on the consultancy’s third quarter report for Jakarta, 2013 is expected to see another record number of apartments coming on-stream. But overall supply will fall short of what would otherwise have been.  

In fact, the number of completed condominiums fell to 2,390 units during the three months ended September, or down from the previous quarter's 4,500 units.