Australian Ray White opens five outlets in Indonesia

JAKARTA (JP): Australian-based property broker, Ray White Real Estate, has opened five outlets here under its local name, Ray White Indonesia (RWI).

RWI's chief executive Johann B. Nurtanio said here Saturday that the brokerage would soon open another five outlets in Surabaya, East Java.

He said that the property brokerage chain expected to open at least 40 new outlets during the first year of its operation.

The Australian company had established a local joint venture called PT Ray Propertindo as the holder of RWI's franchising rights, he said.

Johann said his company expected to reach a sales target of Rp 750 billion (US$227.27 million) in its first year, despite the current sluggish property market.

"I am optimistic that we will reach the target because of our strong background as real estate brokers," he said.

He said Ray White's understanding of the real estate market and the application of its knowledge through effective marketing practices would strengthen the sales of property.

RWI handles secondary market sales, project marketing, and commercial properties, Johann said.

The company now handles project marketing of several housing projects, including Alam Sutra and Griya Hijau in Serpong (West Java), and Kenpinski apartments, Bona Vista apartments and Lebak Bulus Town Houses in Jakarta.

The properties will be offered for sale during auctions held in cooperation with local auction house operator PT Triagung Lumintu.

Johann said each franchisee would impose a consumer fee of between 2.5 and three percent of the total sales price. He said eight percent out of this fee would be given to RWI.

Ray White's marketing director Greg Toyama said marketing properties through auctions proved successful in Australia, with a successful sales rate reaching 91 percent.

Toyama said the system cut the average days that a property is on the market from 30 to 60 days.

Ray White started out as a family business in 1902 in Queensland, Australia. Headquartered in Brisbane, the chain has expanded its operations throughout Australia, Singapore and Papua New Guinea. (das)