Lippo sees top Jakarta property value triple by 2014
Posted on November 27, 2007
Filed Under Town House
Indonesia’s Lippo Group, which runs hospitals and property firms, said it would spend up to US$10 billion on domestic real estate projects by 2014, and expects prime Jakarta property to double or triple in value by then.
The group, which has listed units in Jakarta, Singapore and Hong Kong, expects to benefit from strong economic growth and rising incomes in Indonesia and other parts of Asia, chief executive James Riady told Reuters in an interview.
“We are going through an unprecedented period of growth and prosperity, and now there is a supply issue, a great shortage of supply of commodities and assets which will drive prices even higher,” Mr Riady said.
The Lippo Group has about 70 per cent of its assets in Indonesia, where its listed units include Lippo Karawaci and Lippo Cikarang, two satellite town developments near Jakarta with their own hospitals, universities, malls, housing, offices, even golf courses. “Indonesia is lagging behind the rest of Asia. Property in Indonesia is extremely cheap, it’s possibly the best value,” Mr Riady said.
Kemang Village, which is Lippo Karawaci’s latest residential development in one of Jakarta’s most popular, upmarket districts, has already sold out all 460 units in the first development phase at US$1,400 per square metre, Mr Riady said.
A comparable property in Shanghai would cost US$17,000 per square metre, or US$25,000 per square metre in Singapore, he added. “Over the next five to seven years, residential, commercial and retail property in prime locations in Jakarta will double or triple,” he said.
(Source: sgpropertypress.wordpress.com/Reuters/Business Times, 27 Nov 2007)
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