When going around in Jakarta, banners and billboards advertising properties are common sight. Seems like in this difficult time, the only segment you can rely is those who has excess money (lower class can just go to hell?).
One of the things in those advertisement is the statement that in xx days the price will go up. Say who ? The developers, and everyone will just follow their lead to pay.
The demand is created because many peoples are not buying home, they're buying investment and thus raising price is an important thing. I think it throws them into irrational mind and follow the lead from the developers that want to keep on bubbling the price of their products.
They raise the price by themselves and in the end they say it as if the value of the property itself raise up to magnificent proportion naturally. Making better housing even more out of reach for the common isn't it ?
[Add]
There's a column in the local business newspaper (Kontan) with a related issue. Is the property price in Indonesia bubbling ?
The writer, which I believe is far more experienced in business investment than the ignorant-me, think that it's not a bubble in Indonesia. At least, many peoples in Indonesia used cash payment instead of mortgage like in the west. The problem is how the house owner later use the property itself, because they could leverage and bubble the value themselves.
Although, being a business newspaper, I think there's also an interest to ensure and promote local investment so the idea IMO is giving a peace of heart that property is still a safe place to plant all those excess cash.
The short idea about developers keep on raising price of premium location without regards of supply and demand ends inconclusively within several paragraph before the end.
I still wish it would reach saturation point and spiral down for those who actually need the housing to live in.