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)