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MarketBeat Greater Jakarta Industrial Report - 3Q 2011

Nov 02, 2011
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GREATER JAKARTA INDUSTRIAL REPORT 3Q11
OVERVIEW
Demand Whilst felt slightly by about 5% QoQ, the demand for prepared industrial land remained strong with over 178 Ha sales recorded in this quarter. On annual basis, the quarterly net demand grew by almost 60% from about 113 Ha in the same quarter last year. With the above activities, the cumulative sales rate continued to increase to 77.9% from 76.4% in the previous quarter. Demand for SFBs & Warehouses for lease in the review quarter also recorded a relatively strong demand. Similar to the trend of the previous quarters, industrial estates in Bekasi and Karawang & Purwakarta areas remained as the preferred locations with about 92% of the total transactions in the review quarter occurred in these areas, and the balance was absorbed by estates in Serang, Cilegon and Bogor. Major demand in this quarter was dominated by Japanese industrialists with main business line of automotive related sectors. Supply This quarter recorded a net additional supply of about 68 Ha from IEs in Karawang/Purwakarta and Bogor. In anticipation of the growing demand, new supplies are expected to enter the market in the short term. The total cumulative supply of industrial land in the Greater Jakarta area during the review quarter grew to about 8,768 Ha. Price The asking price of the industrial land during the review quarter continued to increase, and in some cases on monthly basis, due to strong demand. The estimated average achieved land price in Rupiah term increased to about Rp. 997,000 psm (+13.6% QoQ). In US$ term, the average price increased to US$111 psm. (+8.8% QoQ).
GDP Growth CPI Growth Central Bank-Rate

OUTLOOK Whilst initially feared that the recent natural disaster in Japan may bring negative impact on the industrial market; we saw it brought a rather positive impact instead as Japanese industrialists continued to enter the market in the first 9 months 2011. With the growing demand and lack of good quality stocks, the land price is still expected to increase in the coming quarters.

ECONOMIC INDICATORS
2010 6.0% 6.0% 6.5% 2011 6.6% 7.0% 6.75% 2012F 6.5% 7.0% 7.0%

Source: Government data (BPS, BI, Ministry of Finance) and CEIC

INDUSTRIAL LAND MARKET STATISTICS Average Land Price Overall LocatIon Absorption Rate IDR/sq.m /sq.m US$/sq.ft Jakarta 86.5% 2,275,000 160.7 21.7 Tangerang 66.8% 840,000 67.5 9.1 Bekasi 86.4% 1,045,675 66.9 9.0 Karawang & 75.6% 627,875 41.9 5.7 Purwakarta Serang 60.8% 650,000 47.2 6.4 Bogor 72.2% 1,100,000 88.4 11.9 Average 77.8% 997,000 70.6 9.5 INDUSTRIAL LAND QUARTERLY NET TAKE-UP
Size (Ha)
350 300 250 200 150 100 50 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3

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*Market terms & definitions based on BOMA and NAIOP standards. This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 2011 Cushman & Wakefield, Inc. All rights reserved. Please consider your environmental responsibility before printing this report.

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