The outlook of the retail property market in Jakarta remains upbeat in the short and medium terms, despite a weak sales performance in the first quarter of 2014, according to the latest property market report. This year’s first quarter review of the Jakarta property market issued by Jones Lang LaSalle (JLL) said tha
The outlook of the retail property market in Jakarta remains upbeat in the short and medium terms, despite a weak sales performance in the first quarter of 2014, according to the latest property market report.
This year's first quarter review of the Jakarta property market issued by Jones Lang LaSalle (JLL) said that the rapid shift in urban lifestyle and growing middle- to upper-class customers would further support consumption growth and boost retail sales in the city in the coming months.
The property consultant said upper- and middle-class Jakartans, who were enjoying increases in income and turning to modern lifestyles, would continue to create demand for better-quality goods and products.
Those key factors would be the reason for foreign and international retailers to expand their businesses in Jakarta, despite Indonesia experiencing an economic slowdown this year, the report said.
The country's gross domestic product (GDP) grew by 5.2 percent in the first months of 2014, the slowest pace in five years, following the government's ban on the export of unprocessed minerals at the beginning of the year.
The strong level of pre-commitment of several well-known brands in proposed mall development projects, which will enter the market in the next one to two years, is an indication that the market is facing positive demand.
“Famous brands such as Parkson, Ranch Market, IMAX [Cinemas] and Fitness First, for example, have pre-committed their presence in the St. Moritz shopping mall in West Jakarta,” said the report.