Sales of industrial land in the third quarter of 2022 did not show any significant movement. The largest recorded sales were made by textile companies from Korea in the new industrial area of ​​Karawang. Head of Research Colliers Ferry Salanto said the company had purchased 7.5 hectares of land from a conglomerate company, Artha Graha Group, in the Artha Industrial Hill area. "This is in Karawang, a new industrial area belonging to the Artha Graha Group, they sold about 7.5 hectares to textile companies in Korea," Ferry said at the Q3/2022 Property Market Performance press conference, quoted on Thursday (6/10/2022).

According to Ferry, current conditions encourage land owners to hold back on rising land prices, so that they prioritize getting tenants to enter the area they own.

Based on data from Colliers, the price of industrial land in Karawang in the third quarter of this year was in the range of US$154 or Rp. 2.3 million per square meter. Ferry projects that there will be no price increase until the end of this year.

On the other hand, the sector that is most actively absorbing industrial land throughout 2022 is dominated by data centers. This sector is expected to become a trend for the next few years.

"It is possible that this trend will continue because there are several data center companies that are currently in the process of negotiating with several industrial estates," he explained.

Furthermore, Ferry explained that the data center will also attract high-tech-based companies to enter the industrial area. He gave an example of one of the battery manufacturers for electric cars from Korea.

The company has absorbed and attracted quite a number of partner companies to enter the area that houses the factory. This is because large automotive companies generally do not manufacture spare parts independently, but are supported by partner companies.

"This trend is almost the same when the automotive industry boomed in 2012-2013, when large companies such as Toyota, Honda, Suzuki, entered, of course, this had a domino effect with the entry of companies affiliated with the parent company," he added.

He also projects that with the current boom in the electric car industry in the country, in the future it will trigger native industries to enter the industrial area.