Construction materials in hih demand
Construction materials in hih demand
Muninggar Sri Saraswati, The Jakarta Post, Jakarta
The sales of construction materials in the city increased
slightly over the last six months, revealing the growth of
construction development amid otherwise gloomy economic
conditions in the country.
The sales, particularly of cement, started to increase in
March following the huge flooding which swamped the city for
days, according to several vendors.
"Before the flooding, I only sold about 20 to 40 sacks of
cement a day. After the flooding, I was selling more than 60 a
day. Now, the sales have settled down somewhat to about 30 to
50," said Andi, who owns a construction material store in South
Jakarta.
Sand for concrete and paint are among the most wanted
materials in his store at present.
Most of his customers buy the materials for private use.
He predicted that the situation would last until the end of
this year.
"People are using their savings to renovate their homes or to
build new ones in flood-free areas," Andi speculated.
Another vendor in the Petamburan area, Ayati, confirmed Andi's
statements.
"Consumers continue to buy construction materials although the
prices have increased over the last two months," she said.
A sack of cement is sold for between Rp 27,000 and Rp 28,000,
and 25-kilogram bucket of paint ranges from Rp 200,000 to Rp
400,000. A cubic meter of sand for concrete can be purchased for
about Rp 100,000 in the market.
Earlier this month, the cement industry association (ASI)
predicted that domestic consumption of cement would increase
this year. ASI data shows that in the first six months of this
year, domestic cement consumption reached 12.6 million tons.
Economists supported the prediction, saying that the rise in
worker salaries and the banking sector's move to ease
requirements on consumer loans had played a big part in boosting
domestic cement consumption.
Meanwhile, a marketing agent for a housing developer said that
the housing demand is mostly for simple houses with prices below
Rp 100 million per unit.
"We were able to sell about 10 homes during our three-day
exhibition last month," Kristi said referring to the property
exhibition at the Jakarta Convention Center in Central Jakarta.
Meanwhile, Tineke, an exhibition visitor, told The Jakarta
Post that her family intended to buy a Rp 70 million house in
Bogor this year because they did not want to rent anymore.
"I don't mind buying a house in a suburban area. What's
important for me is that I have my own house and no longer rent
one. Besides, we couldn't afford to buy a house in a strategic
location in the city," said Tineke, who was recently married.