Property consultancy PT Electronic City opens a new outlet on March 29 at the Kota Kasablanka shopping mall in Tebet, South Jakarta. DHONI SETIAWAN/THE JAKARTA POST
DEVELOPERS are continuing to build more retail spaces in Jakarta, although the vacancy rate is increasing on the back of poor sales performance.
Property consultants Savills Indonesia estimated that 321,086sqm of new retail spaces would be developed in Jakarta in 2019-2021, of which 54 per cent would target the upper class market segment and 46 per cent would target the upper middle class segment.
It also projected that South Jakarta would see the largest development of new retail spaces at 44 per cent, followed by Central Jakarta (28 per cent) and West Jakarta (20 per cent), while East Jakarta would not see any new retail spaces during the same period.
Breakdown of 2019
This year alone would see 105,810sqm of new retail spaces – 54,287sqm for the upper class segment and 51,523sqm for the upper middle class segment.
Savills provided a breakdown of its 2019 projection for new retail spaces as 45,710sqm in South Jakarta, 38,300sqm in West Jakarta and 21,800sqm in Central Jakarta – again with no new retail spaces in East Jakarta.
The projection indicated that next year would see the development of 164,276sqm of new retail spaces – 119,000sqm for the upper class segment and 45,276sqm for the upper middle class.
“Additional retail spaces of 97,000sqm will be seen in South Jakarta, and 67,276sqm in Central Jakarta,” Savills Indonesia research director Anton Sitorus said on Sunday, as quoted by kompas.com.
In 2021, it projected that the capital would see 51,000sqm of new retail spaces in the middle class segment in North Jakarta (25,000sqm) and West Jakarta (26,000sqm).
Meanwhile, Savills estimated that the vacancy rate had increased to 12.1 per cent last year from 11.9 per cent in 2017, with a 19.7 per cent vacancy rate in the middle class segment last year. The vacancy rate in the upper class segment showed a year-on-year increase from 6.4 per cent in 2017 to nine per cent last year.
Anton believed that the economic downturn was behind the increase in the vacancy rate of retail spaces in Jakarta. THE JAKARTA POST/ANN
