Property sold to locals, foreigners

JAKARTA (JP): Property developers, hard hit by the economic crisis, have stepped up marketing efforts through an auction system to attract more local and foreign buyers, Jones Lang Lasalle property consultant said here over the weekend.

The consultant said foreign investors interested in Indonesian properties have actually increased, especially since early this year, but information on property sales are inadequate and not properly disseminated.

"Hence, if you notice advertisements on property auctions in newspapers today, you should not immediately construe it as property sales by the Indonesian Bank Restructuring Agency (IBRA)," Jones Lang Lasalle national director Lucy Rumantir said in a statement.

IBRA has foreclosed many properties formerly owned by now defunct banks.

Many developers, she added, consider an open auction system as a more effective way of attracting as many potential buyers as possible.

Moreover, sales through auctions are much more transparent, enabling potential buyers to get complete information on the buildings being offered, Rumantir added.

Citing an example, she pointed to the auction arranged by PT Procon Graha Lelang for Menara Mayapada, the tallest and biggest building in Bandung.

"The auction has nothing to do with IBRA. But the property owner, the Mayapada Group, considers an open auction a much more effective way of getting the best value from the best buyer or investor," she said.

The Menara Mayapada on Jl. Sudirman in Bandung has 17 floors, including two levels of basement parking for 150 cars and 5,000 square meters of open space for another 250 cars.

Rumantir added that given the weak rupiah and the excessive supply of almost all kinds of properties, Indonesia should be a paradise for property acquisition now for investors with long- term interest in the country.

"The key to sales is how to provide potential buyers as much reliable information as possible, including such details as the legal title and the economic prospects of the area where the property is located," Rumantir added.