Housing costs rise 20% in past month

Housing prices have risen 20 percent in the past month, following a jump in prices for construction materials, according to Tri Wedianto, deputy chief of East Java's Indonesian Real Estate Developers Association (REI), on Tuesday.
"House prices in Surabaya started off at Rp 600 million (US$65,480). Now they start at around Rp 775 million," Wedianto said as quoted by tempo.co.
It's not just skyrocketing costs for construction materials. Labor costs are getting more expensive too. It used to cost Rp 225,000 per laborer to work per square meter of construction. It has now gone up to Rp 300,000.
Rising production costs, Wedianto said, are being pushed onto consumers.
Wedianto said that out-of-control construction costs could lead to ever-increasing housing prices, and he has urged the government to intervene and put a brake on rising construction material costs.
"Materials are out of control," he said.
Consumers often look for middle-level housing that costs Rp 200 million. Meanwhile, basic housing, which is subsidized by the government, is also popular.
However, ever since construction material prices have been on the rise, the government has been asked to raise the cost of basic housing from Rp 70 million to Rp 80 million.
In reference to the working class, Wedianto said such people could not afford housing due to increasing prices. Laborers and civil servants have always had it hard trying to buy cheap basic housing.
According to Wedianto, three places that have experienced steep increases in housing prices are Surabaya, Gresik and Malang, all in East Java

Source : The Jakarta Post