Luxury apartments offered to highest bidders
Luxury apartments offered to highest bidders
Sandy Darmosumarto, The Jakarta Post, Jakarta
Real estate developer Duta Buana Permai Development is working
together with MGI Global Auctions to sell 90 units in one of the
four towers of the luxury Apartment Pavilion complex in Jakarta's
business district.
Fifty-five one- to four-bedroom apartments, ranging from 82
square meters to 356 sqm, are to be auctioned off without a
minimum bid.
Real estate giant Coldwell Banker Indonesia's director, Rio
Kondo, who has been appointed spokesperson for MGI, said MGI
expected to sell one property every three to five minutes, or 12
to 15 properties an hour during the Dec. 14 auction.
Duta Buana president Husodo Angkosubroto said, "... over 500
potential bidders from Indonesia and Singapore have already come
to take a look at the units to be sold."
Rio said the auction scheme offers a win-win situation in
which potential buyers were able to determine their own prices
while developers would gain from optimal prices offered.
In regards the price list of units to be auctioned that is
included in a catalog for potential bidders, he said the listed
prices were neither market prices, nor based on construction
costs per unit.
Muhammad Ichsan, a lawyer with the Indonesian Consumers
Foundation, told The Jakarta Post that the price list "is meant
to influence the bidding process".
"The auctioneer has a target price. Providing a price list in
an open bidding will inflate the bidding price," he explained.
MGI will deduct a 3 percent commission from the purchase
price, while buyers will be charged a 0.3 percent auction tax by
the government.
About 90 percent of the units in the other three towers have
already been sold through conventional real estate transactions.
Each tower consists of approximately 120 units.
Construction of the complex itself began prior to the 1997
economic crisis, and Duta Buana is just now putting the finishing
touches on the interior of the apartment units.
This is the first time that an open bid will be applied to the
sale of apartment units here. Potential bidders will be required
to make an initial deposit of Rp 50 million (US$5,800) on the day
of the auction.