Property crash is right next door!
It's like early 1990s when newspapers were filled with pictures of ceremonies to launch new property projects or topping off, grand launching, and then crash! That's my impression when reading newspapers in the last few months. I'm afraid the history is in the remaking.
I read two main business newspapers in Indonesia in two consecutive days. And I got long lists of new property projects already. Just recently, Investment coordinating board approved the plan of a Hong Kong investor to build some new malls and appartments in Jakarta with cost up to US$265 million.
Singapore's Keppel Land, meanwhile, is working with Modernland Realty to develop a US$300 million township in East Jakarta. Modernland just released its 2005 financial report with profit of Rp24 billion (US$2.5 million) from net loss of US$5 million in 2004.
The just recovered property company Pudjiadi Prestige, would start the construction of Rp300 billion condo in Bandung, West Java next month.
The ailing property company Pakuwon Djati is processing global bonds worth US$120 million to finance various projects.
Dharmala Intiland is joining PT Global Ekabuana to develop property complex in Jakarta with US$300-US$350 million investment.
Early last week, Gentamulia announced its The East project to cost Rp500 billion and Agung Podomoro with Garden City (Rp500 billion).
Do we really need these properties? Why nobody want to invest in manufacturing?
If we ask these developers, their answers would be similar, and they claimed high subscriptions even before the project started. Just like the old days prior to the 1998 crash.
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I read two main business newspapers in Indonesia in two consecutive days. And I got long lists of new property projects already. Just recently, Investment coordinating board approved the plan of a Hong Kong investor to build some new malls and appartments in Jakarta with cost up to US$265 million.
Singapore's Keppel Land, meanwhile, is working with Modernland Realty to develop a US$300 million township in East Jakarta. Modernland just released its 2005 financial report with profit of Rp24 billion (US$2.5 million) from net loss of US$5 million in 2004.
The just recovered property company Pudjiadi Prestige, would start the construction of Rp300 billion condo in Bandung, West Java next month.
The ailing property company Pakuwon Djati is processing global bonds worth US$120 million to finance various projects.
Dharmala Intiland is joining PT Global Ekabuana to develop property complex in Jakarta with US$300-US$350 million investment.
Early last week, Gentamulia announced its The East project to cost Rp500 billion and Agung Podomoro with Garden City (Rp500 billion).
Do we really need these properties? Why nobody want to invest in manufacturing?
If we ask these developers, their answers would be similar, and they claimed high subscriptions even before the project started. Just like the old days prior to the 1998 crash.
Labels: PROPERTY
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posted by yosef at 7:50 AM
1 Comments:
Well, I think there will be a slowdown, but I'm not sure of a crash. One thing is for sure: the Indonesian government has to take the initiative in pushing for industrial investments such as manufacturing, infrastructure, and urban development in areas outside of Jakarta. So far they've not done that and seem to have no intention to.
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