The Performance Of Industrial And Hospitality Properties Is Recovering, Offices And Residentials Still On A Downward Trend

Illustration. (Photo: Doc. Antara)

JAKARTA - Property consultant Colliers Indonesia stated that a number of property sectors, such as property related to industrial estates and hotels, currently have relatively better performance compared to other property sectors.

"The industrial (property) sector is starting to recover, the hotel sector has also started," said Head of Research Colliers Indonesia Ferry Salanto in an online presentation quoted by Antara, Wednesday, July 6.

According to him, the property sector has improved its performance at this time after experiencing a pandemic for years, among others, such as industrial estates in various regions.

In addition, various derivative properties from the industrial sector have also shown recovery, such as for cold storage and logistics warehousing.

Then, according to him, the performance of the hotel sector has also started to recover due to the lifting of various restrictions related to traveling or travel activities that were previously strictly enforced.

"Overall, the performance of hotels in Jakarta, Bali and Surabaya entering the second quarter of 2022 has started to increase. One of the triggers is that quarantine for foreign travelers has begun to be abolished. This is attractive for business and tourist travelers," he explained.

However, a number of other sectors, such as the office sector, are still considered difficult because various indications have not shown much improvement.

He said that one of the problems with the performance of office properties is that apart from the relatively decreasing demand, the supply increase is always significant.

At this time for offices, he continued, generally what happens is the relocation of office space or tenants looking for a new office location but the area is not as large as the previous office area.

For e-commerce which has often surfaced in the last few years, he said, businesses in this field are considered to be still looking for offices but seem to be starting to put the brakes on their search because the level of demand for e-commerce is still considered unstable.

Likewise, Ferry continued, with residential apartments where overall apartment sales have shown a downward trend since around 2016.