Colliers International has detailed a positive overview of property performances in the Indonesian market for the first quarter of 2018 in its Asia Market Snapshot Q1 2018 report. 

At a glance

• Biggest deal of Q1 2018: Ex-Australian Embassy at USD49 million. 
• En-bloc transactions: two sales totalling USD86 million

In Q1 2018, the market has seen several significant investment transactions. Indonesian family offices dominated the market with the acquisition of the former Australian Embassy property and half-way developed office building in the south of Jakarta. Transactions such as these demonstrate growing investor confidence around Indonesia and the broader macro-economic story.

Many developers are betting big on infrastructure by creating Transit Oriented Developments (TODs) in the city and near the airport. In Indonesia, the government has been spending an unprecedented amount on infrastructure projects that have the potential to transform property markets, creating jobs and development opportunities. 

The last quarter saw significant growth in investment in the residential and industrial sectors. According to Steve Atherton, Director of Capital Markets and Investment Services at Colliers International Indonesia, the Indonesian market over the course of Q1 “has seen several significant investment transactions, especially in the residential market and industrial sectors." In Indonesia, two en-bloc transactions were made in Q1 2018 totaling USD86 million.

We are also witnessing the first multi-storey logistic warehouse development by a foreign institutional developer; and in the office sector, non-traditional tenants such as start-up companies are acquiring the largest spaces. Atherton goes on to say that "in the next quarter, we believe the industrial and residential sectors will remain the primary focus for many investors. There has been a substantial increase in enquiries we have received from foreign investors planning to enter the market.” 

Jakarta is still the most popular destination for foreign investors but acquiring land parcels remains challenging. As a result, many investors are partnering with local developers to fast-track land access.

Colliers say the high future growth and development potential of these and other Asian markets mean this is likely to remain a major investment theme for the long term.

Source: Colliers International

Click here to view Colliers International Asia Market Snapshot Q1 2018 report. 

For more information or to discuss the report phone or email Steve Atherton from Colliers International via the contact details listed below. 

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