Real estate may grow by 9.4%<\/p>\n
JAKARTA (JP): The growth of the real estate market will likely
\nincrease to 9.4 percent this year from eight percent last year,
\nin spite of possible increases in banking lending rates, a
\nbusiness leader says.<\/p>\n
"The growth will even go higher if the economic expansion can
\nreach the government's target of 6.2 percent this year," Ciputra,
\nchairman of the property business giant, Pembangunan Jaya Group,
\nsaid here yesterday.<\/p>\n
Speaking at the first conference of the Association of the
\nIndonesian Real Estate Brokers (Arebi) at the Sahid Jaya Hotel,
\nCiputra said the high economic expansion will boost demand for
\nproperty.<\/p>\n
To anticipate the increasing demand, state-owned Bank Tabungan
\nNegara plans to provide some Rp 900 billion (US$418 million) for
\nmortgage operations, while privately-run banks are committed to
\nproviding Rp 500 billion for housing credits, he said. He added
\nthat the amount is 50 percent higher than that of last year.<\/p>\n
"I am therefore of the opinion that the increase in the United
\nStates short-term interest rates would not significantly affect
\nthe growth of the property business in Indonesia," he said.<\/p>\n
The increase of U.S. interest rates by 0.75 percent in the
\nlast few weeks has only pushed up Indonesian lending rates by
\naround one percentage point.<\/p>\n
The Federal Reserve last month raised short-term interest
\nrates by 0.25 percent. This is the third time they have increased
\nthe rate this year. Some major U.S. banks have reportedly
\nfollowed suit by lifting their prime rates.<\/p>\n
"As long as our lending rates remain lower than 20 percent per
\nannum, the property business will grow significantly this year,"
\nCiputra said.<\/p>\n
Lending rates for housing loans stand at between 17 percent
\nand 19 percent per year, while the subsidized rates on loans for
\nlow-cost houses range between 8.5 percent and 11 percent.<\/p>\n
Ciputra predicted that the property business will likely even
\nincrease by 2.5 times during the Sixth Five Year Development Plan
\n(Repelita VI) period, which began last month.<\/p>\n
Ciputra said that housing developers, therefore, will enjoy
\nthe robust growth in the property business.<\/p>\n
"I believe the private developers' target of building 200,000
\nnew houses during the next five years will be surpassed," he
\nsaid.<\/p>\n
During the Repelita VI period, private developers and the
\nstate-owned housing company Perum Perumnas are expected to build
\n200,000 houses each, with cooperatives building an additional
\n100,000 houses.<\/p>\n
Ciputra said that this year alone private developers have
\nplanned the construction of over 50 percent of the national
\ntarget, with 124,000 new houses slated for this year alone.<\/p>\n
Out of the new houses to be built this year, 110,000 units
\nwill be designed for people with low incomes, 12,000 for the
\nmiddle class and 2,000 for the upper class.<\/p>\n
Office<\/p>\n
Ciputra also said that the demand for office buildings will
\nalso grow robustly this year.<\/p>\n
"I believe that the occupancy rate for the office building
\nwill go over 85 percent this year, as compared to only 80 percent
\nlast year," he said.<\/p>\n
"Around 300,000 square meters of office space will be offered
\nthis year," he said, adding that 1.80 million square meters of
\noffice space were sold last year.<\/p>\n
The rental rates for the office building range between $16 and
\n$19 per square meter, he said.<\/p>\n
However, Ciputra said that demand for space in shopping
\ncenters will likely grow slower than the rate of growth.<\/p>\n
He said the number of shopping centers will sharply increase
\nin the country in line with the jump in goods consumption.<\/p>\n
"In Jakarta and its surrounding areas, for example, at least
\n10 new shopping centers are now being constructed," he said.<\/p>\n
He explained that they include Puri Indah Mall, Citraland
\nMall, Citra Garden, Shopping Center, Senayan Triangle Mall, Pluit
\nMega-Mall, Lippo Village Mall, Kelapa Gading Mall, Serpong Permai
\nShopping Center in Tangerang and MT Haryono Mega-Mall.<\/p>\n
He said that at least 95,700 square meters of space for
\nshopping activities will be added this year. However, he added
\nthat the 50,200 square meters of space built last year has not
\nbeen fully occupied.<\/p>\n
Last year, developers built five new shopping centers
\nincluding Metropolitan Mall, Cinere Mall, Bintaro Plaza, Bumi
\nSerpong Damai Plaza and Citraland Plaza, he said.<\/p>\n
Ciputra said that demand for hotel rooms will likely will be
\nlow this year. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/real-estate-may-grow-by-94-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}