Projections are up by 10-12 percent
Indonesia’s improving economic growth, infrastructure upgrades and the implementation of new government policies will be boon to the country’s real estate sector, according to property industry group Realestate Indonesia, Reuters reports.
Following the recent announcement that Indonesian President Joko Widodo has extended the “right-to-use” house titles for resident expats by five years, Realestate Indonesia chairman Eddy Hussy told local media in Jakarta that property sales in 2016 will grow by as much as 10-12 percent.
The growth projection eclipses the 7-8 percent reported in 2015.
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In addition to the gradual improvement in the economy – which is forecast to grow by 5.2 percent this year – Hussy also is also pushing for lowering policy interest rates by the central bank in favour of real estate buyers who might have deferred transactions in 2015.
Widodo’s first-year performance in office was generally met with criticisms, despite his platform on increasing investment opportunities in the country.
“The Indonesian economy has lost quite a bit of momentum and will continue to perform below potential in the near term,” Sigrid Zialcita, managing director of research at Cushman & Wakefield, told Property Report earlier this year.
“It will be vital for President Widodo to accelerate the necessary reforms to create a more business-friendly environment in order to spur growth,” she noted.
Source : property-report.com
Read more…Indonesian property sales in 2016 seen to accelerate by up to 12%
