More Australian property to be marketed in Indonesia

JAKARTA (JP): Australian developers consider Indonesia to be one of the best potential property markets in Southeast Asia, while their government seems to be encouraging foreigners to own apartments in its country.

The success of a private company selling 20 units of apartments near the Sydney Harbor to Indonesian buyers in April will soon be followed by other offers from Australian developers.

Central Equity Limited, a publicly-listed developer based in Melbourne, will hold a two-day exhibition here starting on Saturday, and will be introducing apartments in the center of Melbourne.

In cooperation with PT SuryaPrapta Indah, a private property company, Central Equity will market some 100 apartment units whose construction will be completed late next year.

Meanwhile, PT Home 21, a subsidiary of the PSP Group which runs property and brokerage business, will also participate in a home exhibition to offer apartments in Australia.

Home 21, which has just signed an agreement with a Singapore- based international property consultant Victor Morris, will be able to market foreign property in Indonesia and Indonesian property in other countries.

"I am sure that many Indonesians will be interested in buying Australian apartments as the units can be leased with a leasing guarantee of six percent in the first year," SuryaPrapta's director, Sarwono, told The Jakarta Post here yesterday.

A large amount of foreign exchange will leave Indonesia as the two companies are convinced of smooth marketing here.

Home 21's president, Tommy S. Sanjoto, said his company expects to market some 40 Australian apartment units at the housing expo.

Australia rules that only half of the apartments built in the country may be purchased by foreigners.

Nigel Hobart, an advisor at Home 21, said that Indonesia and its neighboring countries are different markets, "but demand for Australian property is definitely strong and increasing."

Hobart and Sarwono said there are no data on how many Indonesians are buying apartments in Australia, but Indonesia is viewed as one of the best potential markets after Singapore and Hong Kong.

The executives said that Indonesian buyers will likely lease the apartments or use them as residences for their children studying in Australia. (icn)