Investors from the property sector are waiting for East Java's development overview of Madura before investing their capital on the island, says an executive.
The secretary of the East Java branch of the Indonesian Real Estate Association (REI) Muhammad Nur Wakhid said Thursday that a number of property investors had expressed interest in developing Madura after the opening of the Suramadu bridge. "One of the infrastructure problems has already been solved by the opening of the Suramadu bridge. In the current condition, investors believe the property sector will grow in Madura. Hence, they want to develop their business there as soon as the development overview for the island is finished," said Nur, adding the administration's plans would help guide investors in deciding what areas they could develop.
He said to speedup investment in Madura, known as the "island of salt", the government needed to establish an authoritative body to manage the areas between Surabaya and Madura.
This body, he added, could help attract more visitors to the area by approving and monitoring legal permits.
Building and Construction Interchange (BCI) and Asia Construction Information Pte. Ltd. estimated the property sector in Madura would grow by 45 percent this year as a result of new Suramadu bridge.
The operation of the bridge, said BCI, would attract both domestic and foreign investors, in both the mining and property sectors and would create demand for more residential areas.
The construction sector in Madura, according to the BCI, grew by 40 percent this year, higher than the 20 percent average growth rate of construction in all of East Java.
Madura has become a new attractive area for companies wanting to develop the property sector as the demand for property development in Surabaya, Sidoarjo and surrounding areas is at a standstill. Many property developers are optimistic the operations of the Suramadu bridge will cause the demand for property to rise. Residential demand is estimated to increase as industry growth attracts more people to the area for work.
As of the first semester this year, the total number of property developments currently being built in East Java reached 90, these developments include middle and large scale projects such as apartments, which are located in Surabaya, Sidoarjo, Mojokerto, Pasuruan and Malang. The developers involved in the project have invested a total Rp 3.15 trillion.
Find Article by Date