The property industry really prepare for the world steel price hikes

The property industry really prepare for the world steel price hikes. Monday (26 / 4) and, together IISIA Krakatau Steel (Indonesia Iron and Steel Industry Association) predicts an increase in steel prices will continue to happen until the third quarter of 2010. Increase an average of Rp 200 per kilogram per month.

Because of this, many wearing industrial property prices had planned to raise steel prices. "Increase steel significantly, so the increase in property is also bound to happen," said Chairman of Real Estate Indonesia (REI) Teguh Satria, Tuesday (27 / 4).

Recognizing these conditions, the fair if some developers have started to put the horses. "There must be the impact on property prices, but we still have to count again a big effect," said Danang Kemayan Jati, Head of Corporate Communications PT Lippo Karawaci Tbk.

Similar disclosed developer Great Podomoro Group. "We were fortunate to establish contracts with suppliers of steel up to three months ahead. But after that, willy-nilly have to swallow that steel prices have gone up," said Alvin Andronicus, General Marketing Manager of the Great Podomoro.

Executive developers working on superblock superblock Brass City while completing this City Podomoro mention the effects of steel price increases will vary for each project. For example, for Podomoro City project in the finishing stage, the use of steel components is not large. "Thus, the impact of steel price increases barely felt this project," said Alvin.

As with the Brass City project. In the new project starts, the steel is still the main expenditure components.

Strategy developer
Despite the increase in steel virtually impossible negotiable, both Lippo and Podomoro promised to avoid a drastic increase in property prices. "If the mere increase in the fair, all property is definitely going up in value. What we need to do is to keep the price increase not to shake the demand," said Danang.

Alvin adds that if under normal conditions, the trend of price increases could enlarge the margin, the margin in such a condition that must be suppressed. According to Alvin, the normal growth in property prices in Indonesia ranges from 15 percent to 20 percent per year. "That could be diverted in part to reduce the selling price because of production costs to swell," he said.

However, if the increase in property prices can not be avoided, Danang said, the developer must have a marketing strategy to keep telling the consumer does not lose the passion. "The packages should be packed with interesting sales, and how payments can be commuted by any means of cooperation with various banks and financial institutions," said Danang. "Moreover, quite a thin margin of apartment sales, so price increases become inevitable," he added