Business · Companies · 2 days ago

Buyers Urged to Check Apartment Projects Before Paying

Buyers Urged to Check Apartment Projects Before Paying

Experts in Indonesia are warning people to look beyond a low price when buying an apartment, especially before construction is complete.

In an off-plan sale, buyers are relying on a developer to finish the building later, as promised.

Some apartment projects in the country have been delayed or left unfinished, weakening buyers’ confidence.

Experts say problems can arise when developers lack funds, demand is below the number of units available, or projects lack the required permits.

Buyers are advised to check the project’s permits and land ownership, monitor construction progress, and review the developer’s track record.

They should also read the sale agreement closely, including the handover deadline and penalties for delays.

Those who can afford it may consider a completed unit or a project further along in construction, while weighing the risk as well as the price.

What people are saying

Buying an apartment is different from buying something already available, especially if you buy at the pre-sale stage; consumers are not only buying a unit but also buying the developer’s promise.
Ferry SalantoHead of Research Department, Colliers Indonesiavia CNBC Indonesia
The most important thing is not only, can I afford to buy? but also, can I afford the risk?
Ferry SalantoHead of Research Department, Colliers Indonesiavia CNBC Indonesia
Demand is not yet as large as the available supply.
Ali TranghandaCEO, Indonesia Property Watchvia CNBC Indonesia
It usually stalls because the developer insists on going ahead. The permits do not come through, so it stalls.
Steve SudijantoDirector, Global Asset Managementvia CNBC Indonesia

Sources

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