The condominium market in Asia is going through an extremely profitable phase. In the one hand, some property brokers go through hiccups in selling new condominium projects.

On the other hand, developers are not willing to break the development of new condominiums in Asia, at least for the next 1-2 years. The government allows foreigners the right to use land only, nothing more. In fact, their interest in the Asian property, particularly condominiums, is very strong, not to think about the prices that are fairly less than other countries.

Strong consumer purchasing power for condominiums has lead to surge in the national property loans. During the first semester of 2007 bank loans for the property sector progressed by 26.96%. Bank Indonesia reported that in June 2007 loans directed to the sector arrived at Rp130.9 trillion, compared to Rp103.1 trillion in June 2006.

The property loans as of June 2007 are split up into construction loans of Rp31 trillion, real estate loans of Rp17.4 trillion, as well as house and apartment ownership loans of Rp82.5 trillion. This has lead to the consumption loans during the first semester of 2007 rising by 18.4% to Rp249.4 trillion, compared to the first semester of 2006 of Rp208 trillion.

A reason behind the moderate response in the condominium market net take-up in Asia can be attributed to several factors, including the battle between condominiums and lavish houses in high-class locations with more competitive prices and privacy. On the other side, reduction in house ownership loan rates have urged customers to invest in landed houses, expecting large fixed capital gains.

Consumer purchasing power for condominiums is still strong. The trend of apartment ownership loan-directing in the first quarter of 2007 gives the signal that consumer purchasing power is solid. However, in general several factors such as supply and demand, huge fresh supply from delayed projects in 2006 have resulted in the condominium market reaching the alarming territory.

By 2007 end, fresh condominium supply is expected to reach 4,000 units, not to think about the alive and unsold 3,155 condominium units in the first and second quarters of 2007. Considering lower estimated sales rates of 20% in the third and fourth quarters of 2007, it is predicted that unsold supply of condominiums that are alive will increase rapidly in 2008 and 2009

This year’s drop of bank interest rates means 2007 is the year to buy property. Flooded supply in the market will result in the decrease in prices of new condominium. The trend of tenants moving from old-style condominiums to the new ones is expected to meet the wish of buyers who buy to lease. However, buyers aiming to lease condominiums should look at the trend of expatriates’ shrinking interest in renting condominiums.

Taking into account the alarming level, the condominium developers should rethink about their projects. Understanding market’s needs, including the supply and demand calculation for certain locations should be performed for the developers to sustain themselves in coming years. Too much attention in the momentum and constant development of new condominium projects without far sighted thinking will lead to the condominium market getting overheated.

Construction loans in the property sector reached Rp31 trillion in June 2007. Unnecessary fight in the property market will inevitably result in flourishing non-performing loans. The market data points to the fact that middle and upper-middle segments of condominiums are favored. It is important to understand that locations outside the central business districts or other high-class premises, where land prices are comparatively low, are prospects for the low-end condominium market. If you take care of state of the market and other related requirements you should be able to invest successfully in Asia.

When people want to buy real estate these days, they prefer to opt for Condominiums. There are a lot of advantages in buying a condominium instead of a regular house. Once you understand what these condominiums offer, you may change your mind too.

First of all, condominiums are sold at a much lower cost as compared to a house in the same locality. It may seem wiser to many people who buy condominiums if they are looking to live in a place where the real estate price is expensive. They would enjoy the same surroundings for a much cheaper price!

It is not just the price that seems attractive about a condominium. There are a lot of other benefits that come within the same price. Condominiums will remove the worries you may have of what you needed to do to maintain the front or backyard! There would be no hassle of a garden. You, as an owner, would be provided with parking and it hence spares you the despair of parking during winter or your driveway maintenance.

Most of these condominiums also have various recreational facilities like a gym or a swimming pool which is an added advantage for you as you would not have to look elsewhere for the same facilities. Some of them also have provisions for doing your laundry. This would avoid you the trouble of going out and finding a washer and dryer.

This option would also cut out on many other expenses. You would not have to think about repairing your roof due to some damage or other exteriors like getting a paint job done, or replacing your doors and windows. One would not have to think about the initial expenses at all that you would otherwise have to in case of buying a house. A house owner will have a lot of responsibilities like regular upkeep and maintenance of the house. Most people either have not enough time, capital or sometimes health to ensure the house is well taken care of. Condominiums would eliminate all this worry and you would not be so tormented.

Something else that may be of interest is that condominiums would be much simpler to resell in case the need arises. Suppose you do not want to sell it but instead only want to relocate keeping the place, you can just rent or lease the condominium. People would prefer a condominium to a house due to the fact that it is more convenient and hence would allure many more prospective tenants. Areas around the waterfront are also quite popular for condominiums if you wish to be close by the waters. People who own waterfront properties generally decide on condominiums as they provide accommodation to many more than what an independent house can provide. Condominiums are a more viable option for people who intend to build houses for the purpose of selling them. This is so because they are cheaper and one piece of land can provide place to many more condominiums than houses which in turn is more profitable for the owner.

So as you may have realized, condominiums are gaining popularity these days and there are abundant reasons explaining the same.