Great promotions launched despite uncertainties<\/p>\n
JAKARTA (JP): Housing and property developers are currently
\npromoting their projects with attractive advertisements in the
\nmedia. Property exhibitions are also held regularly in the
\ncapital.<\/p>\n
However, the property market is still down, at least according
\nto stock market analysts and property consultants.<\/p>\n
"The demand for mid and low-cost houses still exists, but
\nthere's a greater demand for luxury houses," said market analyst
\nYenny Fadjar of PT Harita Kencana Securities.<\/p>\n
Therefore, many developers prefer to develop more luxury
\nhouses, she added.<\/p>\n
Among the developers which offer medium-cost and luxury houses
\nare PT Mekarnusa Cipta, the developer of Kota Wisata in Cibubur,
\nand PT Miyasa Properindo, the developer of Legenda Wisata also in
\nCibubur. Both companies are the subsidiaries of the Sinar Mas
\nGroup. Kota Bunga in Puncak, West Java was also developed by the
\ngroup.<\/p>\n
House prices at Kota Wisata range between Rp 251 million (105-
\nsquare-meter plot) and Rp 1.3 billion (450 square meters). The
\nprices at Legenda Wisata, which was developed after Kota Wisata,
\nrange between Rp 237 million (119 square meters) and Rp 1.4
\nbillion (480 square meters).<\/p>\n
Another developer, Bumi Serpong Damai, also had grand
\npromotions for its new houses whose prices reached hundreds of
\nmillions of rupiah.<\/p>\n
Lippo Karawaci is promoting its new houses in Karawaci,
\nTangerang, Banten, worth Rp 832 million. Citra Raya of Ciputra
\nGroup, also in Tangerang, sets its houses at Rp 66 million, Rp
\n94.8 million and Rp 166.3 million.<\/p>\n
Yenny said demand for medium-cost and luxurious houses
\nremained high. Therefore it is no surprise if developers focus on
\npromoting expensive properties.<\/p>\n
The method of payment has also been designed to attract
\npotential buyers. Some developers offer competitive interest
\nrates and installments for the down payment.<\/p>\n
Buyers are offered an interest-free down payment and a 36-
\nmonth installment if they chose a house in Citra, a housing
\ncomplex developed by the Ciputra Group.<\/p>\n
In spite of the economic crisis, there are still many people
\nwho can afford expensive houses, and developers have taken
\nadvantage of this.
\n
\nApartment<\/p>\n
Apartment leasing, as part of the residential sector, is also
\nseeing good prospects.<\/p>\n
"This market is mainly for expatriates. Presently, expatriates
\nare coming to Indonesia as a couple or by themselves, so they
\nprefer to stay in apartments, not houses. Therefore, there has
\nbeen good demand for the new apartments in the capital's central
\nbusiness district," said Dina Pattiasina, director of residential
\nproperty consultant Colliers Jardine.<\/p>\n
She said some of the apartments also offer attractive and
\nflexible terms of payment.<\/p>\n
"Payments can now be made for a six-month period, instead of
\nthe one or three-year advance payment," she said.<\/p>\n
She said many people were on the waiting list to lease some of
\nthe popular apartments. "And at the moment, there is no new
\nsupply."<\/p>\n
Those with high occupancy include Kempinski, Four Season-
\nRegent, Lippo Aston and Menteng Executive.<\/p>\n
Dina said the high occupancy had caused an increase in rentals
\nwhich now reached between US$3,500 and $4,000 per month for a
\nthree-bedroom unit.<\/p>\n
The total number of apartments in the CBD has reached 9,800
\nunits and about 19,200 units in secondary areas.<\/p>\n
Jakarta has several apartment projects in the pipeline,
\nincluding those located near Shangri-La Hotel and Grand Hyatt
\nHotel. There are also apartments, because of financial problems,
\nare not operating although the construction has been completed.<\/p>\n
The property sector was the first to be affected by the
\neconomic crisis that hit the country in mid-1997. The sector
\nslumped the following years. As a result, many firms defaulted on
\ntheir debt payments. Banks were forced to transfer the assets of
\nheavily indebted property developers to the Indonesian Bank
\nRestructuring Agency (IBRA).<\/p>\n
However, two projects that managed to be completed include the
\nFour Season-Regent, which will soon open its two remaining
\ntowers, and J.W. Marriott Hotel in Kuningan area, which will
\nlaunch its grand opening in the near future.<\/p>\n
Office<\/p>\n
There is a different situation in the office sector.<\/p>\n
In its latest report, Collier said plagued by political
\nuncertainties and slow progress in the country's economic
\nrestructuring, Jakarta's office property market remained inactive
\nin the first quarter this year, with a weak demand, stagnant
\nrentals, high vacancies and a steady stock supply.<\/p>\n
The report forecasted that the stagnant market trend would run
\nthroughout the year, with no major recovery in sight until the
\nfirst quarter of next year, pending a global economic rebound and
\nthe return of political stability in Indonesia.<\/p>\n
"Aggravating the downward trend in this first quarter is the
\nsluggish demand, in relation to a plentiful office stock supply
\nthat totaled 3.88 million square meters," said Richard Rossiter,
\nColliers Jardine's managing director.<\/p>\n
He said an additional supply of 160,000 square meters would
\nenter the market in 2002 with the completion of the Wisma Mulia
\nand Wisma Asiatic office projects.<\/p>\n
Wisma Mulia totals 107,000 square meters and Wisma Asiatic
\ntotals 53,000 square meters. Both are scheduled for completion by
\nmid-2002 and to be launched by late next year.<\/p>\n
In this year's first quarter, Jakarta's office vacancies
\ntotaled 932,000 square meters with a vacancy rate of 24 percent.<\/p>\n
According to Colliers, recovery of the Jakarta office sector
\nis subject to the influence of macropolitical and economic
\nfactors.<\/p>\n
Meanwhile, director of industrial and commercial sales and
\ninvestment of Colliers Jardine, Riko Perlambang, said the
\nindustrial sector had also been stagnant with trivial
\ntransaction.<\/p>\n
"There is transaction only at the secondary level. This
\ninclude the asset sales of bankrupt companies, so the prices are
\nvery low," he said.<\/p>\n
He said the situation was related so much to the
\nmultidimensional crisis in Indonesia.<\/p>\n
"When there are still uncertainties, no new companies will be
\ninterested in investing in Indonesia, thus the industrial sector
\nwill remain stagnant," he said.<\/p>\n
He said the labor issue had also hindered foreign investors
\nfrom entering Indonesia in recent years.<\/p>\n
He added that it was very hard to forecast when the situation
\nwould get better as it was related to the unpredictable domestic
\nsituation. (I. Christianto)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/great-promotions-launched-despite-uncertainties-1447893297",
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