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Central Java sees housing shortage
Central Java is experiencing a shortage of houses of up to 350,000 units as of July as a result of an accumulation of housing deficits from previous years
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entral Java is experiencing a shortage of houses of upto 350,000 units as of July as a result of an accumulation of housing deficitsfrom previous years.
Head of the Indonesian Real Estate Association's Central Java chapter, MR Priyanto, stated that his members were only capable of building 6,000 to 10,000 housing units per year. They aimed to build up to 10,000 units by the end of 2014, he said ' the same target set in 2013. 'The 10,000-unit target seems pretty difficult to achieve at the moment,' Priyanto said as quoted by Kompas.com on Friday. 'We have only built 3,000 houses in the first half of this year, and if we reach 6,000 units, that would be a blessing.'
He added that several factors, including the high price of land due to the lack of land to build houses on, had contributed to the association's members missed housing target for this first half. 'We were forced to find and use land located far from city centers with affordable prices,' Priyanto said.
'If we sold a house for Rp 105 million [US$8,896] per unit, it means that we must find land that does not cost more than Rp 200,000 per square-meter,' he said. Another factor contributing to the housing shortage was the government's slow action in naming new prices for subsidized housing units through the housing loan liquidity facility (FLPP).
'The government has not set any prices for the subsidized houses. Their inaction is causing developers to delay construction,' Priyanto explained.
Other factors, such as the delayed regulation by the Finance Ministry to waive the 10 percent value-added tax (PPN) for subsidized housing, have also contributed to the shortage.
