Good deals on flooded houses
Damar Harsanto and Debbie A. Lubis, The Jakarta Post, Jakarta
After the recent floods, many residents of Jakarta and its surrounding areas, traumatized by the deluge and concerned similar floods may reoccur in the near future, appear to be determined to say goodbye to their properties.
Notices reading "House for sale" can be seen in front of many properties in the areas hit by the floods.
And for those interested in the houses and unconcerned about the floods, the prices are really cheap.
For instance, Rachmawati, 65, a resident of Kelapa Gading, North Jakarta, whose house was flooded up to 1.5 meters deep, was ready to sell her house 40 percent cheaper than its selling price several years ago.
"I want to sell as soon as possible, even at a low price. I want to move to an area which does not flood.
"I bought it at Rp 500 million a couple years ago, but now if someone has Rp 300 million cash, I'll let go of the house," she said.
She and her maid were trapped on the second floor of the house during the floods, without food and clean water for days.
Meanwhile, Susi, a resident of Bintaro, in Tangerang said that she wanted to sell her house as she feared more serious floods.
"The price is Rp 575 million cash. But, don't worry it's negotiable," Susi said, adding that she bought the house at a higher price several years ago.
According to Susi, the recent floods did not reach her house but her neighbors' houses which are ten meters away.
"But had larger floods come, it would have swamped my house. That's why I am willing to sell," Susi said.
Property consultant Era Prima said many flood victims are now opting to sell their homes and move to safer places, causing property prices in flood-prone areas to drop and flood-free areas to increase.
"Flood victims are ready to abandon their houses and offer them for sale at lower than the market prices -- around 20 percent to 30 percent less. But if they really want to move as soon as possible, they will let go of their houses for a price at 40 percent below the market price," Era Prima director Paternus told The Jakarta Post over the weekend.
The company is located in Pluit, an area which was badly hit by the recent floods.
He added those people are now planning to move to the South Jakarta areas that are free from floods such as Kebayoran Baru and Pondok Indah. He predicted that housing prices in those areas would increase significantly.
Ipung Rachmaningtyas, research manager of property consultant Koll IPAC, said many flood victims were now looking for properties in Cibubur and Depok areas, which were completely untouched by the recent floods.
Meanwhile, a senior official of the Indonesian Consumers Foundation (YLKI) said house owners could sue their housing developers for failing to guarantee that their properties were free from floods.
If house owners have purchasing agreements which clearly stipulate that their houses will be free from floods, home owners can use the documents to support their lawsuit, YLKI law expert Sudaryatmo said.
However, in case there is no such document, house owners can use the developers' marketing brochures as evidence.
"The lawsuit will be strong if there is purchasing agreement mentioning the free-flood guarantee. But, the fact is that no developers put the guarantee clause in the sales and purchase documents," he said.
"In that case, house owners can use brochures or other evidence to show that the developers have assured them that the residential areas will not be affected by floods," Sudaryatmo said.