Housing market seen stronger next year on continued high demand<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After improving significantly this year, the housing market
\nshould continue to strengthen next year with demand remaining
\nstrong, especially for houses in the middle and upper-class
\ncategories, experts said.<\/p>\n
High demand for housing will continue not only because of
\nstable political and macroeconomic conditions, but also due to
\nthe recent trend of families looking to upgrade to larger, more
\nexpensive houses after paying off their first houses.<\/p>\n
Eppi Pribudhi Soeriawidjaja, president of property developer
\nPT Catur Mitra Persada, said this was the reason demand for
\nmiddle to upper-class houses would remain high.<\/p>\n
"I'm optimistic the housing market for the next year will
\nremain good, just as this year, maybe even better," Eppi, also a
\ntop official at the Indonesian Real Estate Association (REI),
\ntold The Jakarta Post on Wednesday.<\/p>\n
He said the current declining trend in domestic interest
\nrates, plus a relatively stable exchange rate for the rupiah
\nagainst the US dollar, boded well for the housing market because
\nit would revive consumer confidence and encourage people to buy
\nnew homes.<\/p>\n
These same macroeconomic factors have been credited with
\ndriving the housing market boom this year.<\/p>\n
In the doldrums throughout the late 1990s economic crisis,
\nhousing construction experienced a rapid recovery this year with
\nnew houses flooding the market to meet the strong demand.<\/p>\n
REI has predicted that construction of middle and upper-class
\nhouses this year will reach about 6,796 and 1,401 units,
\nrespectively.<\/p>\n
These figures are considered high compared to the levels of
\nthree and four years ago, although they still do not match
\nprecrisis levels.<\/p>\n
As for low-cost housing, REI said the overall trend was also
\nupward.<\/p>\n
For this year, REI said the supply of low-cost houses would
\nreach 130,000 units, almost equal to the precrisis level, with an
\nexpected increase in 2003.<\/p>\n
Eppi said the strong demand for new houses could also be seen
\nin the crowded housing exhibitions that have been held in
\nJakarta.<\/p>\n
"Most of those exhibitions have been successful," Eppi said.<\/p>\n
Meanwhile, Doli D. Siregar, a property analyst, said next
\nyear's housing market would also depend on how the Indonesian
\nBank Restructuring Agency (IBRA) dealt with its property assets.<\/p>\n
"Many of the property assets under IBRA are tainted by legal
\ndisputes. These should be resolved first because the public is
\nkeeping a close eye on those assets. If IBRA can eliminate those
\nproblems, this would do good for the overall housing market,"
\nDoli told the Post.<\/p>\n
IBRA currently controls property assets valued at more than Rp
\n50 trillion (US$5.5 billion). It took over the assets from
\ndebtors as collateral for their debts to the state.<\/p>\n
The agency is mandated to sell these assets to raise funds to
\nhelp finance the state budget.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/housing-market-seen-stronger-next-year-on-continued-high-demand-1447893297",
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"sponsor": "Okusi Associates",
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