Property News (Jakarkat) : Detik Finance reported that The developers incorporated in the Real Estate Indonesia (REI) continued to monitor the potential increase in cement prices which will affect the cost of home production. Besides cement, the potential rise in steel prices and fuel oil (BBM) is also haunt residential developer in Indonesia.
This reported by Chairman Real Estate Indonesia (REI) Setyo Maharso, to detikFinance, Tuesday (03/29/2011).
"If it rises, its effect will be large. Because of the absorption (cement) toward the cost of production by 30%. We have not wished, there has been no price increase rate (the house). We and the position of wait and see," he added.
Currently, more Setyo, REI members continued to focus on the effects if the true price of cement, steel and fuel costs certainly rise in mid-2011. The potential decline in consumer demand could have happened because home prices rose due to rising production costs.
"We'll see the market. What affects the purchasing power of consumers. Since not go up. If a real increase, certainly has the potential decline in demand. So there must be innovation," he said.
However, when elements of production costs over the rise, new homes will affect the selling price in future periods. While the existing inventory, there is no increase. Because the production of raw materials have been ordered by the developer in advance.
This reported by Chairman Real Estate Indonesia (REI) Setyo Maharso, to detikFinance, Tuesday (03/29/2011).
"If it rises, its effect will be large. Because of the absorption (cement) toward the cost of production by 30%. We have not wished, there has been no price increase rate (the house). We and the position of wait and see," he added.
Currently, more Setyo, REI members continued to focus on the effects if the true price of cement, steel and fuel costs certainly rise in mid-2011. The potential decline in consumer demand could have happened because home prices rose due to rising production costs.
"We'll see the market. What affects the purchasing power of consumers. Since not go up. If a real increase, certainly has the potential decline in demand. So there must be innovation," he said.
However, when elements of production costs over the rise, new homes will affect the selling price in future periods. While the existing inventory, there is no increase. Because the production of raw materials have been ordered by the developer in advance.
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