200 developers may go bust<\/p>\n
JAKARTA (JP): Property baron Ciputra predicted yesterday about
\n200 developers would go bust because of the property market
\nslump.<\/p>\n
Ciputra told a seminar yesterday these property developers had
\nbuilt their projects at the wrong time.<\/p>\n
\"They started acquiring land and building their properties
\nwhen the sector was booming. Thus, when they finished their
\nproperty projects, the sector had started to get gloomy,\" Ciputra
\nsaid.<\/p>\n
Most of the soon-to-go-bankrupt developers were small or
\nmedium companies, Ciputra said.<\/p>\n
He said the property market was weakening because of
\noversupply. It was a good time to buy houses.<\/p>\n
Despite the gloom, Ciputra said most property developers,
\nespecially those with strong financial support, would make
\nprofits this year and next year.<\/p>\n
Property analyst Panangian Simanungkalit predicted earlier
\nthat about 625 developers would go bankrupt next year because of
\ntheir liabilities, legal problems and the weakening market.<\/p>\n
Panangian also predicted that problems loans in the property
\nsector would reach Rp 5.6 trillion (US$2.41 billion) next year,
\nup from Rp 5.25 trillion this year.<\/p>\n
Ciputra disagreed with Panangian's figures, saying that
\nproblems loans in the sector would not exceed Rp 1.5 trillion.<\/p>\n
He said the 20 publicly listed property developers did not
\nhave problem loans.<\/p>\n
Ciputra said the market would remain dull next year because of
\noversupply and the government's tight monetary policy.<\/p>\n
But if lending rates, especially for housing loans, could drop
\n3 percent the market would start booming again in the middle of
\nnext year, he said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/200-developers-may-go-bust-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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