Property: Law of Supply and Demand despite Jakarta’s Flood

By N Mark Castro

Here’s something to help you assess the cost of flood to your property.

Perennial floods have visited Jakarta every year and yet, ironically, the government almost always act surprised every time it happens.

But do house prices dramatically fall in flood areas and if not, why not?

Jakarta has experience major flooding in average once in every 5 years. The last two big floods were in 2002 and 2007.

From survey conducted by Disaster Mitigation Relief Agency (BNBP), it is discovered that the topography of Jakarta is getting lower while the sea level is getting higher. This coupled with high volume of water dumped by the rainy season will create a flood that is higher and stays longer.

And none more so true in the posh section of Kemang.

A casual viewer might well be tempted to ask: “Who would live in a place like this?”

After all, plenty of property purchasers can be put off by a survey that comes back with damp or a bit of subsidence.

And yet, an average property in Kemang can cost you US$ 1,350,000!

Imagine paying for a first-world price in a third-world country.

One might assume that there would be massive falls in property prices after a highly publicized episode of damaging flooding.

But the figures don’t seem to back that up.

And with the continued higher demand for properties in Jakarta, despite the horrendous traffic and horrible flood, prices will continue to climb and government officials will continue to be dumb.

It’s time for the new generation of politicians to step in.

About Asmartrock

N. Mark Castro is the chief political communications strategist for PT AsiaLeads, a political and communications policy-making body based in Jakarta, Indonesia. He is also the Executive Director at the Southeast Asia Consulting Group, an investment advisory company assisting clients roll out their presence for the ASEAN Economic Integration in partnership with government. The views posted here are his own and do not in any way reflect the views of the companies he represents.

Posted on January 17, 2013, in General, Politics and tagged , , . Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

ItandEat

Faces and Places

Unspun

Unspinning spin and other distractions

spiceislandsblog

This WordPress.com site is the bee's knees

Salt and Light

Talk minor, act major.

PikselPal

any screen one goals, Yours

Don Charisma

because anything is possible with Charisma

We'll Always have Casablanca

Maybe not today, maybe not tomorrow...but soon! And for the rest of your life.

blueVisions Indonesia

Certainty, Innovation, Excellence.

blueVisions Australia

Certainty, Innovation, Excellence.

Health & Family

A healthy balance of the mind, body and spirit

Teppy and Her Other Sides

Eat well, live well, and be merry!

loveheartseverywhere

my collection of love & hearts for you and from you, around the world

theconservativehillbilly

Confronting stupid people with the cold hard conservative fist of truth

The Sentient Mouse

From my soul to yours...

wanhandredwan

...of wander & wonders

Parenting And Stuff

Not a "how to be a great parent" blog

%d bloggers like this: