Colliers International, a leading global commercial real estate firm, expects West and South Jakarta to become promising locations for the development of high-rise (office) buildings. Associate Director for Research at Colliers International Ferry Salanto explained that Jakarta's infrastructure development plans - in p
Colliers International, a leading global commercial real estate firm, expects West and South Jakarta to become promising locations for the development of high-rise (office) buildings. Associate Director for Research at Colliers International Ferry Salanto explained that Jakarta's infrastructure development plans - in particular new road construction - are the main reason why prospects of property development have become more promising in the Kebon Jeruk (West Jakarta) and T.B. Simatupang (South Jakarta) areas.
According to Salanto, the Jakarta Outer Ring Road, which will connect Ulujami (South Jakarta) and Kebon Jeruk (West Jakarta), is expected to help businessmen travel efficiently. State-owned toll road operator Jasa Marga targets the 7.67-kilometer road will be ready for operation by the end of June this year.
T.B. Simatupang - known as the new Thamrin (which is the central street in Jakarta's Central Business District) - has a strategic location due to its proximity to the toll road (this toll toad has a direct connection to airports, seaports, and the industrial estates of Bekasi and Tangerang, both located just outside Jakarta). However, this area is less attractive for the construction of apartment buildings due to the limited availability of land. Property developers prefer to keep the land in their possession and thus rent out offices instead of selling apartments.
Data from Colliers International indicate that base rental rates for offices in T.B. Simatupang will rise to USD $20 per square meter/month, while purchasing prices start at IDR 30 million (USD $2,608) per square meter.