Property Developers Ready To Face Possible Price Hikes

Semarang, C Java, Sept 1 (Antara) - A number of property developers said they are ready to face possible increase in prices if the government decided to raise the oil fuel (BBM) prices. The president elect Joko Widodo, who will take over the presidency last next month, has indicated that the BBM price had to be raised to cope with fiscal liquidity problem. "If the BBM prices are raised we estimate that the price of property would increase around 10 percent," chairman of the Central Java branch of the Indonesian Real Estate (REI) association MR Priyanto said here on Monday. Priyanto said the issue of oil fuel price hike resulted in an increase in sales of houses and other property buildings at the last REI Exhibition. "The increase was significant with 87 units of house and other property buildings sold in the exhibition , up from 50 units in earlier exhibition," he said. He said people were prompted to buy houses and apartments before the prices rose. "The prices of houses have never fallen once they increased. The prices of property buildings would rise if the prices of land and building materials increase," he said. However, General Manager of Apartment Candiland Semarang Agus Sudrajat said the BBM price hikes have been calculated from the beginning, therefore, it would have no effect on sales. "We have predicted the BBM price would rise 10-20 percent and the possibility has been calculated in setting the prices of the property buildings," Agus said. Even if without the possible BBM price hikes the prices of Candiland apartments have continued to increase every three months, he said.