Tuesday, April 15, 2014

Top Class Drops Half Property, Market Slide to Medium Type

Indonesia Property Watch ( IPW ) states the general housing market declined by an average of 49 percent of the transaction value . However , according to an analysis done , a shift in the market , especially from the upper middle segment to the middle segment .

Quoted from a statement Wednesday, April 16, 2014 , the Executive Director of the IPW , Ali Tranghanda , say , based on the composition of the existing sales , is expected to occur over the market shifts that occurred in the quarter I/2014 to the middle segment .

Compared to last year , a relatively high market segment ranges from 30 percent of the total value of the transaction , but declined rapidly in early 2014 to 15 percent . On the other hand , the composition of the middle segment increased from 30 percent to 40 percent .
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He estimated that the trend will continue given the value of the land which is already too high , even for intermediate housing built above .

" Most of the high developers are more interested in building a vertical residential or commercial sectors with high value of land already , " said Ali .

Furthermore, Ali explained , in a down market segments , the developer is still pegged to the price of a standard home facilities subsidized unadjusted .

He explained , many low-cost housing developers are pursuing a strategy of building construction with lower specifications in order to remain affordable to consumers' purchasing power .

Meanwhile , he added , some chose to try and leave in the middle segment of government subsidized housing programs .

He added that this market shift to be addressed by the developer to begin creating the types of homes in the middle segment with broad resizing .


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