Despite high interest rates here driven by the global economic downturn, most property developers remain afloat and even have new projects as they adopt more innovative strategies that range from marketing to cheap financing.

Property developer Agung Podomore Group (APG), for instance, is committed to going ahead with several new projects in 2009. To fund the projects, the group is not only relying on bank loans but also on financing options such as pre-sale proceeds, internal funds and pre-commitment, according to PT Agung Podomoro Group marketing director Indra W. Antono.

One of the new projects is Cosmo Terrace, which requires an investment of Rp 200 billion.

“Around 50 percent of the total 300 units of the Cosmo Terrace project has been sold,” he said.

APG is the flagship company for developments such as Plaza Semang­gi and Senayan City. This business group has shown it can develop modern shopping centers, office compounds, hotels, boutiques and apartment buildings.

Indra said that the opportunities are still wide open in the property market for the upper-class segment. To date, Agung Podomoro is developing 12 projects, half of which will come online in 2009, he said.

Like property for the upper-class segment, the retail sector, which comprises trade centers and shopping centers, is also expected to survive the crisis and even see an increase in sales in 2009, especially those that adopt a unique concept.

PT Procon Indah has estimated that during 2009, there will be an additional supply of new space in Jakarta totaling 493,700 square meters from 14 planned retail projects. In addition, there are six other projects with a total area of 293,300 square meters expected to be completed in 2010.   

The property products that will continue to show promise are Grade A apartments for rent and sale, both being designated for the upper class.

With regard to the development of condominiums in Jakarta, particularly in the Central Business District, supply continues to increase and sales remain stable.

Data compiled by the Property Research Institute (PRI) Jakarta shows that there are at least 53 apartments buildings Jakarta’s CBD area.

In 2009, there will be additional supply with the completion of the construction of Oakwood Premier Cozmo, Cityloft, Sahid Sudirman, Pacific Place, Thamrin Residences, Mediterannia Marina Tower C, Marbella Kemang Tower A and Mediterannia Garden Residence Tower 2.

Up to the end of 2009, it is estimated there will be an additional new supply of some 13,000 units from 17 projects. As a whole, over 80 percent of these property products can be absorbed by the market, according to PRI.

With regard to the development of condominiums in Jakarta, particularly in the Central

Business District, supply continues to increase and sales remain stable. 

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