News:
Lippo Aims at Middle Segment
Source: Kontan, 22nd Feb 2010
After satisfactorily dominating market with projects that target the premium segment such as Kemang Village, Lippo development is now seriously developing housing projects that target the middle segment.
Through PT Lippo Cikarang, as many as 123 housing units in the cluster Ivory Garden was officially launched last weekend. The launch is the beginning of the second phase of development of this cluster which stood at 6.2 hectares of land.
Previously, in last January, Lippo launched 84 housing units in the same area. Total of 207 housing units are marketed at around Rp.300 million up to Rp.600 million. “Housing demand in this price range keeps increasing every year”, said Endang Sutrisna, The Genaral Manager of Marketing and Business Development of PT Lippo Cikarang last weekend.
Lippo Cikarang is optimistic this project will be in demand. In addition to the high demand of price range, the location of Ivory Garden which lies in the middle of Cikarang Industrial, Cibitung and Cikampek is considered fit enough for the price. “In those areas are operating more than 2,600 factories. See, how big the market is,” added Endang.
According to data collected by this developer, in that eastern area of Jakarta are operating around 550 industrial with 250,000 people working every day. That is one reason why Ivory Garden will be the new pillar of Lippo Cikarang. “Lippo Cikarang is cooperating with Bank BNI to provide credit facilities to fixed interest rate of 5% per year,” said Endang.
Utami Prastiana, Associate Director of PT Procon Indah, said that housing demand in middle segment is increasing, recently. “Following the derivation of BI rate are mortgage interest rate which has successfully increase confidence in the middle class buyers,” Utami said.
Based on research by Procon, Utami is optimistic that housing demand will increase to 4%. Besides the improvement of buying capacity and the increasing demand, developer’s confidence supported by banks is the key to housing growth in this segment.
However, Utami reminds that this market situation will enforce developers to raise the housing price around 10% to 20% per year.
Nadia Citra Surya