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ndonesia is witnessing significant property growth, with development no longer confined to primary cities or the provincial capitals on Java, but within secondary cities, thanks to the country'€™s improving economy.

'€The massive and sporadic development of property sub-sectors, including housing complexes, apartments, shopping centers and hotels constitutes a logical consequence of economic growth and people'€™s improving purchasing power.'€ said JLL head of research Anton Sitorus.

According to him, the sale of property products, especially landed houses, were the biggest contributors to most developers'€™ total revenue.

'€But this does not necessarily mean that other products, such as offices and apartments, cannot sell well in secondary cities beyond Jakarta. It is a matter of time; all will be absorbed by the market because what is called a modern city will continue to grow in line with changes and the city'€™s development,'€ he said.

The change and the growth of the city are marked, among other things, by sharp increases in the price of land and the price of the property.  

PT Ciputra Surya Tbk president-director Harun Harjadi said that in the last five years, land prices had increased by between 50 and 100 percent, depending on building location, function and availability of public transportation,'€ he told kompas.com.

'€œIn general, the already established regions, or those built with integrated systems, saw a sharp rise of 100 percent. Commercial land naturally also witnessed sharp increases in prices. The explosion of growth in land prices in the regions was especially evident between 2010 and 2013,'€ he said.

According to Anton, the rapid growth of property products, including complexes, shopping centers, hotels and offices, followed by the sharp rise in the land price, has not been confined to capitals of provinces or big cities.

'€œSecondary cities and regency cities have also seen rapid growth in the property sector,'€ he said.

Property developer Ciputra Group has taken advantage of the momentum of the property explosion by developing property projects in 34 cities across Indonesia, five of which are in secondary cities.

Meanwhile, Manado saw the highest rise in housing prices in Indonesia in the second quarter of 2014, at 9.54 percent.

According to a survey on primary residential property conducted by Bank Indonesia, the price of large-type housing increased by 11.3 percent following stagnant growth during the previous three months.

Makassar also saw a significant rise in housing prices, at 6.5 percent, especially in the medium-type house sector, at 7.81 percent.

Big property developers, such as Lippo Karawaci, Ciputra Group and Agung Podomoro Group, have entered the two regions, building multi-function properties and housing complexes complete with commercial facilities. (JP)