TEMPO Interactive, Jakarta: Research by property consultant Jones Lang LaSalle, said the market in Indonesia was reduced by ten percent. However, Indonesia is still a potential market. Chairperson Lucy Rumantir, said that since the fourth quarter last year, the property market has slowed down due to the global crisis. The condominium sector is the worst. “It has been slowing down since October 2008,” she said yesterday.
Lucy explained that it could be seen from the way the developer suggests payment methods. “Some developers have you pay 24 times, then change it 36 times without interest giving a discount,” she said.
Lucy said that the property market in Indonesia especially condominiums and office buildings, is still interesting to foreign investors.
Senior Research Manager at Jones Lang LaSalle, Anton Sitorus, said the selling of condominiums plunged sharply. Last year, 8,500 of condominiums were finished. “Some 6,700 are sold,” he said. While this year, construction of 7,000 condominiums will be finished but the selling rate will be lower.
He explained that shopping centers will not be developed this year due to public buying power. “Retail selling will also weaken and it will influence retail expansion,” said Anton.