Unscrupulous practices affect housing brokerage
Unscrupulous practices affect housing brokerage
JAKARTA (JP): Unscrupulous housing brokerage practices, which
lure buyers with elite images of property on sale, have hampered
the growth of the housing business.
"Such practices have even tainted the image of all people
involved in real estate," Ciputra, a member of the board of
patrons of the Association of the Indonesian Real Estate Brokers,
said.
He was speaking during a discussion between the association's
new board and State Minister of Public Housing Akbar Tandjung
here on Saturday.
Ciputra, who is also chairman of the giant property developer,
Pembangunan Jaya Group, cited an example of shady property
brokerage practices taking place on Batam Island in Riau, which
he said tainted the image of Indonesian housing developers in the
eyes of Singaporean buyers.
"I am of the strong opinion that a number of brokers on the
island have been giving unrealistic descriptions of the houses to
be built in the Batam housing complex, consequently making their
potential buyers reluctant to continue negotiations, or even
causing them to call off plans for transactions," he said.
Early this year, housing developers on Batam Island reportedly
went bankrupt and reneged on loans because most of their houses
were unsold.
Regulation
To anticipate the impact of illegal practices in the housing
brokerage, the association yesterday urged the government to
regulate the housing brokerage business.
"For the purpose, we ask the government to support our planned
requirement in the business to make housing brokers hold licenses
for their operation," association chairperson, Cynthia G.
Sonneville, said.
She was optimistic that licensing will help organize
practicers in the brokerage business.
"If the government approves such a licensing scheme, housing
brokers will be identified with certificates," she added.
"The licensing requirements will be based on professionalism,"
she said.
She also said the organization is now preparing training for
brokers in cooperation with the Real Estate Institute of Western
Australia. "We will very soon make comparison studies in
Malaysia, Singapore, the United States and Australia," she
pointed out.
Both Akbar and Ciputra proposed that the organization set up
an institute for housing brokers.
The association, set up in November 1992, has 59 corporate
members in Jakarta and East Java. (fhp)