From: Tempo InteractiveTEMPO Interactive, Jakarta:Developers are accelerating their housing projects to meet a 60 percent increase in demand for re-investment. “Young professionals are the main enthusiasts who are taking advantage of available mortgages,” said Muhammad Reza Makkawaru, the Imperium Mice CEO, yesterday.
According to Reza, investment in the housing sector has been growing since 2010, with many transactions recorded during exhibitions. The sale of homes for investment represent are 60 percent of demand, while the remaining 40 percent are for residential needs. “The need for personal housing is no longer the main priority. Most buyers already own one maybe three housing units, which are seen as long-term investment,” he said.
Reza said that the growing interest in investing in houses is reinforced by the expansion of the city to the suburban areas in Gowa Regency, Takalar, Sudiang, and the Maros border. Developers have been looking for potential locations in the suburbs. “The housing developers’ behavior is being monitored by people with deep pockets,” he said. The average investment value is around Rp250-325 million per unit, for various types of homes.
Hudli Huduri, Bank Panin’s branch deputy manager confirmed the increase in the residential investment business. But, only 30 percent of the growth make use of mortgages offered. “Most customers already owned more than one [house] units,” he said.
Based on Bank Panin’s data, the demand for residential housing still will rise by 60 to 70 percent, mostly the type sought by workers and young couples.