Monday, May 14, 2012

"Bubble" Condominium Sector Hit, If ....

The number of condos on the market supplies 2012-2013 was made ​​into a low occupancy rate. It was triggered by investors buying condos and then leased back rather than used alone. However, whether this condition can lead to inflate the price or the property bubble?
During the yield is lower than deposit rates, then inflate the price or the bubble will not occur.
- Arief Rahardjo

Head of Research & Advisory at Cushman & Wakefield PT Indonesia, Arief Rahardjo, in a discussion on "Prospects and Investment Condominium in 2012" in Jakarta, Monday (5/14/2012), said That a potential bubble in the condominium sector Could occur if the yield rent (yield) is lower than deposit rates.

"Noteworthy is the large number of condo rental supply will lead to higher competition and the effect on rents. For yield no lower than deposit rates, the bubble did not inflate the price or Will Happen," he said.

Arief said, According to Cushman and Wakefield, during the last five years of rising prices of condos for rent at 13% of the range 10% - 15%. The increase of rental rates in Themselves are increasingly varied and competitive, depending on the benchmark price of the investors.

To get around these conditions, Arief Continues, developers are asked to look at the condo market supply and demand. For example, he said, with a condominium development takes into account That the huge demand or is not close to residential development.

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