Lowest Point 2015 Property Market in Indonesia

Lowest Point 2015 Property Market in Indonesia

2015 is predicted to be the lowest point of the property market in Indonesia. Because the property industry in Indonesia once again be tested, ranging from rising fuel prices (BBM), to increase in the BI rate.

The developers will be careful to raise property prices because it will soon rise following the construction costs and the cost of funding. The condition will give effect to begin early in 2015. 2015 is expected to be the lowest point of the property market,” said Director of Indonesia Property Watch (IPW) Ali Tranghanda quotes from the official website IPW, Sunday (11/23/2014).

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Followed by rising fuel price and hike in the BI Rate to 7.75 percent makes the property market is getting worse. This condition makes the condition of the property market slowdown increasingly fell sharply. Until the third quarter of 2014 there has been a decline in sales of more than 69 percent compared to the third quarter of 2013.

Ali estimates that every increase of 1 percent in interest rates would reduce the purchasing power of 4-5 percent. However, with the multiplier effect of the fuel and the current property slowdown, it is expected to decline in the purchasing power of at least 30 percent. “The developers are expected to be more vigilant to expand either for or upper middle segment, he said.

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Even so, continued Ali, the flow of foreign funds into Indonesia related MEA 2015 will be able to deliver good growth, especially in the industrial sector. In addition, the weakening of the rupiah against the dollar should remain the undivided attention. He also suggested that developers do consolidation in anticipation of the estimated market recovery in 2016.

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