After exhaustion due to global crisis, property demand was expected to increase by semester II 2009, as indicated by lowering of BI rate and cycle of property demand which normally reached its peak in Semester II. Director of Executive Indonesia Property Watch Ali Tranghanda disclosed the matter in Jakarta Monday [25/5].
Increase of demand were highly potential in all property types. However the biggest increase would be medium to lower types of houses, medium apartments, and hotels. “BI rate [7.25%] fell but not automatically followed by downturn of mortgage – it might take two months and another three months to reach consumers’ level. All in all it would take 5 months before any acceleration was possible, probably until the second semester” he remarked.
BI rate which presently have gone down to 7.25% level had the potential to increase mortgage market share, because at every lowering of 1% interest rate, it would jack up mortgage market from 4% to 5%.
Although by semester one the property sector were sluggish, by Quarter I 2009 the property price index like Jakarta and surrounding [Jabodetabek] rose 0.42%. For lower middle 0.58 middle 0.37 and upper middle 0.3 where sales at upper middle rose by 2.29% by Quarter I 2009.
The location factor became an absolute criteria in choosing property, where investment zone become main reference. For example, the South Jakarta location, the ideal locations were those flanked by Kemang and Pondok Indah, like Ampera. Even the locations in Southern Jakarta which we re not saturated became potential locations for property investments.
Meanwhile, levels of price increase in some locations in 2008 like Puri Indah showed an upgoing price between 10% to 11% per year. Precisely Pondok Indah 5% to 6%, Kelapa Gading 11% to 13%, Serpong Tangerang 12% to 25%, and Sawangan-Pamulang 8% to 10%.