Expert sees quick recovery in prime condominium market<\/p>\n
JAKARTA (JP): A property consultancy firm predicted on Monday
\ndemand for prime condominiums in Jakarta would recover sooner
\nthan expected given the country's continuing economic
\nimprovement.<\/p>\n
PT Procon Indah\/Jones Lang LaSalle said buyers' confidence
\nhad begun to recover at the end of the second quarter of 1999
\nfollowing improvements in the country's economy, the
\nstrengthening of the rupiah and the peaceful general election.<\/p>\n
\"Individual investors consider residential property as part of
\ntheir investment portfolio due to banks' declining interest rates
\nand the (country's) expected political and social stability,\" the
\ncompany said in its biweekly report.<\/p>\n
However, the company said sales of middle to lower-priced
\ncondominiums would likely remain quiet until mortgage
\navailability and interest rates returned to precrisis levels.<\/p>\n
The company also said prices quoted in rupiah for prime and
\nmiddle to lower-priced condominiums would maintain their decline
\ndue to the rupiah's expected continued strengthening against the
\nU.S. dollar.<\/p>\n
\"We may see prices of prime condominiums stabilize in early
\n2000. For middle to lower-priced condominiums, prices are
\nexpected to increase in early 2001 when demand has improved,\" the
\ncompany said.<\/p>\n
Average condominium prices in rupiah declined 12.8 percent to
\nRp 5.12 million per square meter in prime residential locations
\nover the first quarter of 1999. Prices declined by 8.8 percent to
\nRp 8.3 million per square meter in Jakarta's central business
\ndistrict (CBD).<\/p>\n
Condominium prices quoted in U.S dollars fluctuated depending
\non the exchange rate of the rupiah against the dollar. Average
\nprices in dollar terms declined by 19 percent in prime
\nresidential locations and 15 percent in the CBD in the first
\nquarter of the year.<\/p>\n
The company said condominium sales remained quiet in the first
\nhalf of 1999 due to political and social uncertainty ahead of the
\ngeneral election.<\/p>\n
However, the number of prospective buyers increased
\nsignificantly in mid-June, with the elections being free of the
\nmuch-feared violence. Most prospective buyers were in the market
\nfor prime condominiums for primary home or investment purposes,
\neither in the primary or secondary market.<\/p>\n
The total number of condominiums stood at 22,958 units as of
\nMarch 1999, a 0.9 percent increase from last year, according to
\nthe report.<\/p>\n
The first-quarter increase in condominiums was the result of
\nthe completion of construction on the 131-unit Menara Matahari
\nCondominium in Karawaci, Tanggerang, and the 67-unit Gunung
\nSahari Apartments in North Jakarta.<\/p>\n
Another project, the 52-unit Sailendra Apartment in Mega
\nKuningan, was completed in May 1999.<\/p>\n
Several condominium projects were resumed in mid-June after
\nbeing temporarily halted during the elections.<\/p>\n
Completion of the projects is likely to be at least six months
\nlate due to the construction delay.<\/p>\n
Construction of 4,656 units is currently under way, with
\nconstruction scheduled to be completed by the end of 2001.<\/p>\n
Construction of two 1,587-unit condominium projects in Kelapa
\nGading, North Jakarta, and Permata Hijau, South Jakarta, has been
\ndelayed since the beginning of 1999, the report said.(gis)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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