New Market Research Report: Indonesia Real Estate Report Q2 2011

April 9, 2011 - PRLog -- There is considerable optimism in the Indonesian commercial property market. Rents were hardly touched by the global financial crisis and have, in fact, risen significantly over the past two years. We expect rents in most cities and in each of the three sectors - office, retail and industrial - to rise further in each of the next two years.

The Indonesian economy is growing successfully. It slowed but did not go into recession during 2009 and bounced back in 2010. We have recently upgraded our forecast for 2011 GDP growth to 5.9%.

Indonesia is somewhat isolated in terms of global trade with net exports contributing only 2.8% to GDP in 2009. Private consumption and capital investment make up the bulk of GDP. Consequently, even if there is a slowdown in the Chinese and/or US economies during 2011-12 this would have little impact on Indonesia's growth or, therefore, its property market.

What is noticeable, and unusual, from the picture of Indonesia's commercial property market is that increased rental returns are being reflected in increased yields. It is usual to see increased rental returns leading an increase in property values that erodes, or even replaces, any increase in yield. The explanation here seems to be that property owners/investors are content with the increase in rents and see no reason to sell. As a result there have been too few property transactions completed to show any significant upward trend in property prices.

In the residential sector, however, demand for luxury residential property - both purchases and rentals - has been weak since the end of 2009, and remained stagnant throughout 2010.

There had been a plan announced by the government that would have allowed foreigners to buy property in Indonesia. However, the government reacted to the pressure put on it by later withdrawing that proposal. A compromise that appears to have greater chance of success has now been proposed. This would allow foreigners to buy long-term leases of up to 70 years, but not buy the freehold.

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Report Table of Contents:

SWOT Analysis
- Indonesia Real Estate/Construction SWOT
- Indonesia Economic SWOT
- Indonesia Business Environment SWOT
Real Estate Market Overview
- Table: Indonesia's Real Estate Market - Historic Rents, 2009 And 2010 (m2/month, US$)
- Table: Indonesia's Real Estate Market - Net Yields, 2010 And 2011 (%)
- Table: Indonesia's Real Estate Market - Terms Of Rental Contract/Lease, Mid-2010
- Table: Indonesia's Real Estate Market - Available And Vacant Space, Mid-2010 (m2, unless stated)
Industry Forecast Scenario
- Real Estate Outlook
- Rents and Yields
- Table: Indonesia's Real Estate Market - Rentals, 2010-2012 (m2/month, US$)
- Table: Indonesia's Real Estate Market - Forecast Net Yield, 2008-2015 (%)
- Indonesia's Construction Industry Outlook
- Table: Indonesia Construction And Infrastructure Industry Data, 2007-2015
- Table: Indonesia Construction And Infrastructure Industry Data, 2012-2020
- Construction And Infrastructure Forecast Scenario
- Macroeconomic Outlook
- Table: Indonesia - Economic Activity, 2006-2015
Business Environment Ratings
- Real Estate/Construction Business Environment Rating
- Table: Asia Real Estate/Construction Business Environment Ratings
- Indonesia's RECBER
- Project Finance Ratings: Outlook For Asia Pacific
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Indonesia's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Asia Annual FDI Inflows, 2006-2008
- Table: Trade And Investment Ratings
- Table: Indonesia Top Export Destinations, 2001-2008 (US$mn)
Company Monitor
- Adhi Karya
- Holcim Indonesia
- Jakarta Propertindo
- Lippo Karawaci
- Pakuwon Jati Tbk
- Semen Gresik
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.