Sunday, October 07, 2012

Heading to Another Property Bubble?

I read the other day about the price of property in Jakarta which increasing fast. Really fast. In certain area of Jakarta a land costs USD 7500 per square meter! The weird part is, the more expensive a property is, the more interest of buying it. 

Today I was meeting some folks and heard that in this particular area of Jakarta, eight months ago the land price was about UDS 800 per square meter, nowadays you have to pay USD 2000! A house with less than 1000m² of land at Brawijaya street in Kebayoran, Jakarta was sold for more than USD 7 million last week. 

Indonesia's economy is booming despite world economic problem, but I'm afraid we are heading to another property bubble in Indonesia. Might as well bracing myself. 


colson said...

150% in eight months?

That's about the very definition of a bubble. So sell, sell, sell now! :)

TA said...

if only I have something to sell :(

Anonymous said...

Not only Jakarta, but Bangkok, Yangoon, Phnom Penh, Kuala Lumpur, Manila all Asian capitals have experienced surge in land prices. This is the effect of USD being printed and therefore the local currencies are also get printed as well. So it is really the declining value of money - the so called fiat currency. Yangoon is reaching USD25,000/sqm. Bangkok is anywhere around $15,000/sqm. So Jakarta price is relatively cheaper, with bigger population and booming economies.

Anonymous said...

amazing land price in Yangoon.–-boom-or-bust/