Micro apartments popular in Amsterdam as house prices rise Housing

DutchNews, March 1, 2023 

Micro apartments often have just one room. Photo: Depositphotos.com 

Amsterdam is leading the way in the sale of micro apartments of between 20 and 50 m2, according to research by the Kadaster land registry. 

Last year, 1,925 small apartments were sold in the capital and cost an average of just over €400,000, the Kadaster said. That is 1.4 times the price in Utrecht and almost double that of other parts of the country. 

Just over half of the 5,100 small apartments sold last year changed hands in the big four cities and 38% were bought in Amsterdam. 

This is due in part to the capital’s attraction for young adults, who are prepared to live in smaller properties because house prices have risen so much, Kadaster economist Paul de Vries told Dutch News. 

Micro homes are typified by having plenty of shared amenities, such as work space, laundry facilities and cars or bikes.

Giant construction project takes shape in remote North Korea

Yahoo – AFP, Sebastien BERGER, September 20, 2019

.Greenhouses in Samjiyon devoted to growing crops for the chronically
undernourished North (AFP Photo/Ed JONES)

Like a scene from an epic film, thousands of workers swarm over the building sites of Samjiyon, a monumental construction project in the far reaches of North Korea ordered by leader Kim Jong Un.

They clamber over wooden scaffolding and dangle from window frames, and whether they are carrying loads, sifting sand or mixing concrete, most of the work is carried out by hand.

The plan involves nothing less than the rebuilding of the entire town of Samjiyon, the seat of a county that includes the supposed birthplace of Kim's father and predecessor Kim Jong Il, and Mount Paektu, the spiritual birthplace of the Korean nation.

The plan involves the rebuilding of the entire town of Samjiyon, the seat 

of a county that includes the supposed birthplace of Kim's father Kim Jong Il 

(AFP Photo/Ed JONES)

It encompasses a museum of revolutionary activities, a winter sports training complex, processing plants for blueberries and potatoes -- two of the area's most important crops -- a new railway line to Hyesan, and 10,000 apartments.

It is the kind of showpiece scheme that can only be launched by a state as monolithic as North Korea, where authorities can decide to deploy vast amounts of resources and manpower to a single goal and implement it by order.

The results can be striking -- thousands of houses were built in just three months after flooding hit North Hamgyong province in 2016.

But doubts have been raised about the sustainability of such projects once the physical infrastructure is established, with questions over issues ranging from utility supplies to durability and economic viability.

Kim inspected the Samjiyon Potato Farina Production Factory last year 

(AFP Photo/KCNA VIA KNS)

'Home of our revolution'

Leader Kim has himself addressed such concerns on his several inspection visits to Samjiyon -- one of which, last year, saw him photographed sitting with officials on a mountain of potatoes, which he is encouraging to diversify the food sources in the chronically undernourished North.

The builders should prioritise quality over speed, he told them at the time, with the official Korean Central News Agency (KCNA) citing him saying that if construction was "gorgeous in appearance but poor in substance, it will be blamed by the people and future generations".

He has also stressed the need to ensure sufficient electricity supplies in the drive to turn Samjiyon, the "home of our revolution" into "a highly civilised mountainous city" and "the richest county in the country", according to KCNA.

Greenhouses in Samjiyon devoted to growing crops for the chronically 

undernourished North (AFP Photo/Ed JONES)

It is an ambitious goal in a remote, challenging environment, with long, bitterly cold winters and mountainous terrain, and an area where many roads are still unsealed.

According to local officials, around half of the workforce in Samjiyon county -- which has a population of 25,000 -- are employed in maintaining its historic sites and related activities, 20 percent in agriculture and the rest in industry, including food processing.

'Hostile forces'

Pyongyang has given no figures for the cost of the redevelopment, which will open in phases with Kim ordering completion by the 75th anniversary of the foundation of the ruling Workers' Party of Korea in October next year.

The project includes plans to build 10,000 apartments (AFP Photo/Ed JONES)

Some of the Samjiyon buildings already appear finished with their exteriors tiled, others remain just concrete shells.

Many of the builders are soldiers -- much of the North's army is devoted to construction -- while others are civilians, and they work even on the harvest holiday of Chusok, one of Korea's most important traditional festivals.

Students have been sent to work on the scheme during university holidays and some of those on site appear to be teenagers.

Many of the builders are soldiers -- much of the North's army is devoted 

to construction (AFP Photo/Ed JONES)

But while the North is never short of manpower, observers suggest that sanctions imposed on Pyongyang over its nuclear and ballistic missile programmes have impacted projects such as Samjiyon and the giant Wonsan-Kalma tourist development -- which has repeatedly been delayed -- on the west coast.

KCNA quoted Kim in April calling Samjiyon "a fierce class and political struggle against the hostile forces seeking to check the advance of the DPRK".

'Cracking' Sydney tower residents evacuated again

Yahoo – AFP, 27 December 2018

Police and emergency services evacuated some 300 people in the 38-storey Opal
Tower in the Sydney Olympic Park and other nearby buildings on Christmas Eve

Residents in a recently completed Sydney high-rise apartment block that made "cracking noises" on Christmas Eve were moved out again Thursday as engineers work "round the clock" to fix the issue.

Police and emergency services evacuated some 300 people in the 38-storey Opal Tower in the Sydney Olympic Park and other nearby buildings on Monday after reports of "cracking noises".

The building moved "one to two millimetres" during the incident and authorities said they found a crack on the 10th floor.

Some two-thirds of the units were declared safe to return to Tuesday morning, but 51 others were declared "structurally unsafe".

The issue threw the Christmas plans of affected residents into disarray, with some telling local media they had to sleep in their cars while waiting to return home.

Others said that even though their apartments were deemed to be safe, they were too afraid to live in them.

Builder Icon on Thursday defended the tower as "structurally sound".

"The temporary relocation is a precautionary measure to allow engineers to work around the clock to comprehensively investigate and remediate the site in the quickest time frame possible, without further disruption to residents," it added in a statement.

Icon added that residents would be provided with accommodation and compensation, and investigators from global engineering firm WSP and its majority owner Japanese construction company Kajima would lead the investigation.

Residents were told at a meeting on Thursday it could be up to 10 days before they would be allowed back in the tower, The Sydney Morning Herald reported.

The New South Wales state government is already conducting an investigation into the building's structural integrity.

The 392-unit tower opened this year and is near the site of the 2000 Sydney Olympics.

Rotterdam may get a new skyscraper – the tallest in the Benelux

DutchNews, August 9, 2017

Artists impression: DAM & Partners Architecten

The highest Dutch administrative court on Wednesday threw out objections to plans to build a 215 metre high skyscraper in Rotterdam’s Zalmhaven. 

Locals say the plan will increase traffic congestion, create too much wind and spoil the atmosphere in the area, which has undergone considerable regeneration in recent years.  The Council of State, however, ruled that the city council had correctly applied zoning laws and the building can go ahead. 

The tower, which the developers AM and Amvest hope will open in 2020, will have 475 apartments, offices, commercial space and a panoramic roof terrace. The tower, part of a complex with two smaller buildings, would be the tallest in the Benelux region if it goes ahead. 

The current tallest building is the Maastoren, also in Rotterdam, which opened in 2009 and is 165 metres tall. The Zalmhaven tower will be 190 metres high with a 25 metre antenna on top. 

Ten of the tallest things in the Netherlands

Safety fears for thousands of tower block residents after London inferno

Yahoo – AFP, Robin MILLARD, June 22, 2017

Safety fears for thousands of tower block residents after London inferno

London (AFP) - Tower blocks housing thousands of people across England are being urgently tested to check if their cladding poses a serious fire risk following the Grenfell Tower disaster, as the government on Thursday blamed decades of neglect.

Prime Minister Theresa May said the government had arranged to test cladding on "all relevant tower blocks" following the deadly June 14 inferno, with at least three public housing blocks already found to be covered in combustible material.

English local authorities estimate that 600 high-rise buildings have cladding, and the race is on to establish which ones are covered in the same material that enclosed Grenfell Tower in west London.

The figure does not include Scotland, Wales and Northern Ireland, which have autonomous powers in housing.

The panels have been widely blamed for the rapid spread of the fire which consumed the 24-storey public housing block, leaving 79 people presumed dead.

They may also have produced toxic gases when burning and at least three people injured in the disaster were given an anti-cyanide antidote as a precaution.

Camden Council in London on Thursday said it will remove cladding from five tower blocks over fire concerns, raising questions about the status of the thousands currently living in cladded tower blocks.

"Many others living in tall residential buildings will have concerns about their safety after what happened at Grenfell," May said in a statement to parliament.

"We cannot and will not ask people to live in unsafe homes."

The full terror awaiting firefighters at Grenfell was laid bare on Thursday by footage filmed inside a fire engine as it neared the tower.

Seeing the entire building ablaze, the stunned firemen asked how such an inferno could happen, in the footage obtained by the BBC.

They could be heard saying: "Jesus Christ, that is not a real block with people in it? How are we going get in that?

"That's a whole tower block on fire... Oh my God. There's kids in there. How is that even possible?"

Downing Street declined to specify whether the cladding on the tower block was combustible or not, citing an ongoing investigation.

More than 100 buildings a day can be tested and May urged landlords to send samples for rapid assessment.

She said landlords were expected to provide people with alternative accommodation if buildings were found to be unsafe.

Cyanide poisoning concerns

King's College Hospital told AFP that three of its patients from the disaster were given the hydrogen cyanide poisoning antidote Cyanokit as a precaution.

Manufacturer Celotex stated that the insulation in the cladding would have released "toxic gases" if it caught fire.

The National Health Service said 10 patients were still being treated in hospital, five of whom were in a critical condition.

The cladding was installed for beautification and insulation despite warnings from local residents about fire safety as part of a major refurbishment of Grenfell Tower that was completed last year.

May said "no stone will be left unturned" in a judge-led inquiry she has ordered into the blaze.

She has apologised for the chaotic official response to the fire from local and national government.

The chief executive of the local authority, which owned the tower, quit after fierce criticism over the council's response.

Nicholas Holgate claims he was forced out from his post in charge of Kensington and Chelsea council by the British government's Local Government Secretary Sajid Javid.

However, Javid's office denied involvement, saying it was a matter entirely for the council.

The Justice4Grenfell campaign group welcomed Holgate's departure.

Immigration reassurances

May said there were now around 600 people working by the site to provide support to victims and so far there had been 500 visits to the centre.

Each family whose home was destroyed was receiving a £5,000 (5,700-euro, $6,300) downpayment.

The tower itself contained 120 flats. May said 151 homes had been destroyed and that their occupants were guaranteed new homes on the same terms, within three weeks and as close to home as possible.

"Nobody is being forced to move somewhere they don't want to go," she insisted.

May added that survivors would not be subjected to immigration checks.

"All victims, irrespective of their immigration status, will be able to access the services they need," she said.

London Mayor Sadiq Khan called for an amnesty for any illegal immigrants who survived the blaze.

#UPDATE Hundreds of tower blocks in England have similar cladding to the burnt-out #GrenfellTower https://t.co/qMtsYT5iV5 pic.twitter.com/mDexZHDyaS

— AFP news agency (@AFP) June 22, 2017

Related Articles:

Sixty towers across England found to have unsafe cladding - New
London tower blocks evacuated over fire fears - New

#UPDATE Thousands of residents from 650 London flats evacuated due to fire safety fears after #GrenfellTower blaze https://t.co/P2uZhQQlCr pic.twitter.com/9bdlb1WJ3b

— AFP news agency (@AFP) June 24, 2017

North Korea offers rare apology over collapse of apartment building

An unknown number of people died when a building under construction collapsed in Pyongyang

theguardian.com, Reuters, Seoul, Sunday 18 May 2014

A construction division officer apologises to residents, in a picture
 released by North Korea's official news agency KCNA. Photograph:
KNS/AFP/Getty Images

North Korea has apologised to bereaved families after an apartment building collapsed in Pyongyang last week, the official KCNA news agency said, a rare admission of fallibility from the reclusive state. It is unknown how many died in the accident.

Pyongyang's expression of "profound consolation and apology" was the first official news of the disaster, which happened in the Phyongchon district of the North Korean capital on Tuesday.

"The construction of an apartment house was not done properly and officials supervised and controlled it in an irresponsible manner," said the statement from KCNA, which is better known for its strident attacks on South Korea and the United States.

The KCNA statement said the collapse of the apartment building "claimed casualties" but did not give any indication of how many may have been killed or injured. It said a rescue operation ended on Saturday.

An official from South Korea's unification ministry said on Sunday that a 23-storey apartment building had collapsed in Pyongyang on Tuesday, but he would not say from where the information had been obtained.

The official, who asked not to be identified, said "hundreds" were presumed to be dead.

The KCNA statement said North Korean authorities put emergency measures into place to rescue people from the collapsed building and to treat the injured.

It said Choe Pu-il, North Korea's minister of people's security, had "repented", saying he had failed to supervise the project adequately, "thereby causing an unimaginable accident".

The North had launched vitriolic criticism of South Korea's government for its handling of the ferry disaster that killed more than 300 people, many of them schoolchildren, last month.

Related Articles:

North Korea Reports ‘Unimaginable’ Construction Accident

S. Korea president apologises to ferry disaster relatives

Joko Wants Solar Panels for Jakarta Low-Cost Apartments

Jakarta Globe, SP/Deti Mega P. on 5:06 pm October 8, 2013

People walk across a yard inside the Pinus Elok low-cost apartment
complex in East Jakarta on Sept. 30, 2013. (JG Photo/Safir Makki)

Jakarta Governor Joko Widodo said on Tuesday that he wanted to install solar panels on the 100 low-cost apartment towers that his administration planned to construct next year.

“I think we need to apply an environmentally friendly concept for next year’s low-cost apartment construction,” Joko said on the sidelines of a visit to electronics manufacturer Panasonic Gobel’s plant in East Jakarta. “So solar panels should be installed on all the low-cost apartments that will be built next year.”

Joko said he was aware that solar panels would boost the upfront construction cost, but emphasized the savings that would be made over the longer term.

Yonathan Pasodung, the head of Jakarta Housing and Building Agency, said last month the Jakarta administration was ready to build 100 low-cost apartment towers next year in collaboration with the Ministry of Public Housing.

Each tower would consist of six floors and was planned to host 100 apartment units, with construction cost set at between Rp 20 billion ($1.7 million) and Rp 22 billion per tower.

The towers will be built across five Jakarta municipalities and offered for rent at Rp 150,000 per month per unit to low-income residents.

“That will include those displaced by [Jakarta's] river normalization project,” Yonathan said, according to Indonesian news portal tempo.co.

He added the towers would use precast concrete to make them more resistant to earthquakes.

City plans to remove Ciliwung riverbank residents

Indah Setiawati, The Jakarta Post, Jakarta | Mon, 01/11/2010 9:57 PM

The city administration wants to revitalize the Ciliwung River by removing people living on the river bank to low-cost rental apartments.

Governor Fauzi Bowo said the city was discussing the plan with the Public Welfare Ministry at a number of meetings.

“The people should not move far from the location and will have good [road] access,” he said Monday.

He said the city would be willing to shoulder the subsidy for the low-cost rental apartments if the central government agreed to fund the land and building investment.

“We will help pay the rent fee subsidy because the tenants may only pay Rp 3,000 [30 US cents] to Rp 5,000 per day and that’s not enough for the apartment operator,” Fauzi said.

He said the minister, Agung Laksono, hoped the project would be accomplished before his term ended in 2014.

Deputy governor Prijanto said data on the people living on the Ciliwung riverbanks needed updating because many might only rent a place there.

“According to the data, the number reached 70,000 buildings,” he said, adding that the city had not calculated the number of apartments needed.

Sarwo Handayani, the assistant governor for development and the environment, said the city would not buy the land occupied by the residentsnor give humanitarian money as compensation because the houses were located on the riverbanks, the state's property.

“We will not buy their land. There's no way houses on riverbanks can receive a land certificate. If they do, we will settle this with the BNP [National Land Agency],” she said.

City seals off apartment over lack of permits

The Jakarta Post, Wed, 04/01/2009 2:56 PM

JAKARTA: The South Jakarta Building Supervision Office (P2B) sealed off the Kalibata Residence project on Tuesday, citing the developer's failure to get a building permit prior to the construction of the apartment tower.

South Jakarta P2B head Widyo Dwiono said his office had issued a warrant forcing the developer to stop construction work and immediately arrange for the permit.

"We've reprimanded the developer since December last year. They lack various prerequisites, including a land title deed, building permit for an aero-safe zone, a permit from city spatial office, and an environmental impact study," Widyo said as quoted by detik.com.

The site of the seven-storey apartment is 5 kilometers from Halim Perdanakusumah Airport.

The developer, PT Pradani Sukses Abadi, claimed it was resolving the building permit issue and asked buyers not to worry.

The company's deputy general manager of sales, Fransiskus Afong, said his company would complete the requirements for the building permit ahead of the schedule.

"We're still processing the permit," he said as quoted by tempo-interaktif.com. - JP

Kemayoran apartment to be complete by mid year

The Jakarta Post, Fri, 03/06/2009 2:00 PM  |  City

 

JAKARTA: State housing agency Perum Perumnas is set to finish the construction of 1,800 units of low-cost apartments in Kemayoran, Central Jakarta, by the middle of this year.

 

Perumnas president director Himawan Arief said Thursday that the apartments, built on 1.7 hectares of land, would comprise five towers with 20 levels each.

 

The agency is now carrying out the initial phase of the construction by building three towers: A1, A2, and A3, he said as quoted by beritajakarta.com.

 

"A3 is almost complete, while A1 is still under construction. For A2, we have built 15 levels."

 

The Kemayoran apartments are part of the 1,000 towers of subsidized apartments the government is planning to build nationwide.

 

Although the Kemayoran apartments are still under construction, they have managed to attract 8,000 buyers, Himawan added. -JP

Apartment residents use hoses for water

The Jakarta Post, JAKARTA | Fri, 02/27/2009 2:29 PM 

 

Dozens of long water hoses protruded from the windows of a four-story apartment building in Penjaringan, North Jakarta.

 

The hoses stuck out like giant pieces of spaghetti, chaneling clean water from a gronteng, a deep pool beneath a small hut, to the units of the low-cost Mawar and Melati apartments.

 

Every 20- to 30-meter hose was connected to small jet pumps inside the little hut.

 

Supriyanto, who lives on the fourth floor of Mawar Apartment, said residents started to connect hoses to jet pumps around two years ago.

 

 Water web:: A man walks under hoses at Mawar Apartment in Penjaringan, North Jakarta. Residents living in the apartment’s upper floors use jet pumps and hoses to channel water to their apartment units. (JP/Hasyim Widhiarto)

At the time, they were concerned about reliability of the water supply from city tap water operator PT PAM Lyonnaise Jaya (Palyja).

 

"The apartment's water jet pumps absorb water from the nearest Palyja hydrant, which is located 500 meters away from the apartment," he said.

 

"Most of the time water pressure is very low and can't help the machines push water to the highest units."

 

Supriyanto, who has lived in the apartment since 1997, said the installation was meant to be temporary.

 

"Residents used to bring their jet pumps and hoses after filling up jerricans with water.

 

"Later, almost all residents used the installation because water supply from Palyja was unpredictable," the father of two said,

 

He said the installation could work almost 24 hours a day during the dry season. Most residents in Mawar and Melati apartments work as seasonal workers.

 

They pay Rp 143,000 per month to rent an apartment, plus approximately Rp 50,000 for electricity and Rp 30,000 for water.

 

However, as the water supply is repeatedly disrupted, residents in apartments on the top floors had to dig deep to provide extra cash to install the spaghetti-like hose system.

 

Yuni, another resident, said she had no money to buy a jet pump and a hose.

 

"My husband doesn't work and we have not saved enough money for the installation," said the mother of nine.

 

"At the moment, it costs at Rp 350,000 to buy a jet pump and Rp 100,000 to by a 20-meter hose."

 

Yuni runs a small grocery store at her apartment block. She said she had no choice but to rely on the existing water installation.

 

"When the water flows at midnight, I have to make sure that my water tank is full."

 

Yuni, who has been living in the apartment for seven years, said she sometimes asked to share water with her nearest neighbor.

 

"I am ashamed, but what else I can do?" she said. (hwa)

Low Cost Flats to be Built in Yogya

Wednesday, 25 February, 2009 | 11:47 WIB 

TEMPO Interactive, YOGYAKARTA:The government of the Special Region of Yogyakarta will build 192 low cost flats in Pringwulung village in Sleman, Yogyakarta, this year. 

The cost for constructing homes for low-income earners is estimated to reach Rp24 billion. 

“The concept is to build a twin block, able to accommodate 192 flats,” said Cipta Karya Housing Development Directorate General chief, Edy Priyatna, yesterday (24/2). 

According to Edy, each flat will be 27 square meters in size, with two bedrooms, one bathroom, and a kitchen. 

The bidding process will be carried out in the near future. 

BERNADA RURIT

Bekasi, Tangerang get ‘rusunami’

The Jakarta Post, BEKASI, TANGERANG | Thu, 02/12/2009 12:00 PM  

State-owned housing company Perumnas has started building four towers of subsidized, low-cost apartments (rusunami) in Bekasi, the company’s director said Wednesday. 

Center Point Apartment will occupy 1.4 hectares of land near the Jakarta-Cikampek tollgate, said Perumnas marketing director Tedy Robinson.

“We expect to complete construction of the first tower by the end of this year,” Tedy said, as quoted by Antara news agency. 

Each of the four towers will comprise 16 levels with 870 units of type-22 and type-36 apartments, which will be sold at Rp 88 million and Rp 144 million, respectively. 

Even though the apartments will be sold at low prices, he said, Perumnas would provide facilities similar to high-class apartments.

“We will build a swimming pool, hospital, shopping center and playgrounds, as well as a café and restaurant in the area.”     

He said the strategic location of Center Point Apartment had attracted many customers, with 80 percent of the units to be constructed in phase one already sold.

The apartments are located across from Bekasi Mitra Keluarga Hospital and next to the Islamic Center building and Pondok Gede boarding house for pilgrims, he said.

Tedy said the Bekasi administration supported the construction by issuing a building permit.

A Tangerang official said the administration supported the government’s program to build subsidized, low-cost apartments by building two towers in the region.

The construction of the two towers, located in Cireundeu Ciputat Timur in South Tangerang, is pressing ahead, said Muhammad Hidayat, the head of the Integrated Agency of Service and Licensing (BP2T).  

Hidayat said the Tangerang administration issued a permit on the construction and another permit on spatial planning for the two towers.

“In building the apartments, we have complied with the regulation on water reservoir areas,” he said.    

He said that the construction was responsible so long as it complied with of the analysis of environmental impact (Amdal).

The development of low-cost apartments in Bekasi and Tangerang are part of the central government’s plan to construct 1,000 towers, or 600,000 units, of subsidized apartments nationwide within the next four to five years.

The apartments are sold at a maximum price of Rp 144 million per unit to people earning less than Rp 4.5 million per month.

Half of the towers will be built in Greater Jakarta, 30 percent in cities throughout Java and the remaining 20 percent in urban areas outside Java.

The Public Housing Ministry has estimated that Jakarta will be home to around 51,000 subsidized apartment units by the end of this year.

To encourage more developers to take part in the projects, the government has offered incentives such as tax breaks and subsidies.

Govt to spend Rp 2.5 t on public housing

The Jakarta Post  | Sat, 01/31/2009 8:10 PM  

The government will disburse Rp 2.5 trillion (US$220 million) in the form of subsidies to help develop 170,000 units of houses 40,000 apartment units this year. 

State Minister for Public Housing Mohammad Yusuf Asy’ari said in Banda Aceh on Saturday that the subsidies would be equally distributed throughout the province. 

“We will work with the provincial government in distributing the funds. It will be implemented in a first come-first served basis,” Yusuf said. 

Earlier reports state that those eligible to get the subsidy tax payers with monthly income no more than Rp 4.5 million. (and)

Governor kicks off low-cost apartments construction

The Jakarta Post, Jakarta | Wed, 12/24/2008 1:38 PM  

Jakarta Governor Fauzi Bowo kicked off the construction of low-cost rented apartments in Pulogebang of East Jakarta on Wednesday in a bid to provide affordable homes for poor residents, tempointeraktif.com has reported. 

The governor said on Wednesday that the apartments would accomodate residents who wanted to remove from their previous living places, such as under toll bridge and slum areas. 

“I have expected that people who occupy the apartment can keep it well so that it won't turn out to be another slump and dirty area,” he said, adding that the apartment is scheduled to be complete by nexy year. 

Beside Pulogebang, he added, the city administration and developers would construct another apartment in Muara Baru in Pluit of North Jakarta. 

“The apartment will provide homes for people who want to move from their places that are above Pluit dam to the apartment,” he said. (ewd)

Analysts warn 'rusuna' may face delay or termination

Mariani Dewi ,  The Jakarta Post ,   Jakarta  |  Fri, 11/14/2008 11:13 AM   

Property analysts have warned that buyers of state-subsidized apartments (rusuna) could see the construction of their units delayed or stopped if the current economic uncertainty causes developers to lose their commitment. 

However, the housing association and government pledged the continuation of the projects. 

Anton Situros, research head at Jones Lang LaSalle property consultancy, cautioned buyers to expect a delay in the delivery of their units, or at the very worst, no delivery at all. 

He said most property developers were likely to reschedule their project completion dates, and subsidized housing developers even more so. 

"In the current uncertainty, developers are consolidating their projects. They may cancel those still at the planning stage. The apartments that are already launched may be completed, but could face a delay of a year or two," he said. 

"For big developers, the rusuna projects are showcase projects for CSR. I don't think they will make them a top priority," he said, citing the relatively low profit margin from such projects. 

The subsidized housing projects began last year and are targeting 1,000 apartments to house 350,000 low- to middle-income families. Apartment prices are capped at Rp 144 million (US$12,200). 

Wira Agus, a senior manager at consulting firm PT Property Advisory Indonesia, said the risk existed but had not been observed yet, with the impact from the economic turmoil only starting to be felt in October. 

To date, he said, the ongoing projects were still running, albeit at a slower rate. 

"In the current condition, developers may slow down the pace of construction," he said. 

"Delays of a month or two are common in Jakarta. The possibility of cancellations is what we have to worry about." 

Agus said around half of big developers received funding from banks or investors, with the money usually disbursed in stages as construction progresses. 

"Developers receive the full payment from buyers in advance and may pace their spending. Those nearing completion may be safe, but buyers with units still in the early stages of construction may have to watch out," he added. 

However, Indonesian Developers Association chairman Teguh Satria stressed that developers of sold-out subsidized housings were working at full tilt to complete the units. 

"As long as the units are sold out and buyers' bank loans are approved, developers will continue with the construction. Around 70 percent of projects are financed by loans, so developers don't want to delay, because they need the income to pay back the bank loans," Teguh said. 

Bernaldy, head of the rusuna division at the Public Housing Ministry's Formal Housing Unit, said the government was trying to reduce the financial burden on developers. 

"We value engineering. We let them minimize their designs within safety margins. The Jakarta administration has also agreed to halve the retribution fee," he said. 

Bernaldy confirmed the projects still had many takers. 

"No developer has pulled out of the subsidized housing project. There are some who have not started, but that's because of the paperwork," he said. 

He was optimistic the country was still on schedule to build 1,000 towers by 2011 as promised.