Improved Bakal property, this indicator

Housing-Estate.com, Jakarta – Among developers enthusiastically welcomed the arrival in 2017 of less than two months. Many believe that the positive sentiment related to the economy and regulation will make …

Housing-Estate.com, Jakarta – Among developers enthusiastically welcomed the arrival in 2017 of less than two months. Many believe that the positive sentiment related to the economy and regulation will make next year the real estate business began to pick up after declining last three years.

According to the Chairman of Real Estate Indonesia (REI) Eddy Hussy, there are 10 factors that would make the property industry next year better than this year. “The year 2016 was expected to improve but it turned out not encouraging signals of recovery began to appear in this year and we are optimistic that next year will be better,” he said when talking with the media in Jakarta, Thursday (10/11).

All 10 factors considered will make the property sector better it is:

Economic growth would have been better with a growth target of 5.3 percent.
Indonesia country with GDP (gross domestic product), the largest in Southeast Asia with the mortgage to GDP ratio is still very small at 2.8 percent. It’s very far away from Singapore, which reached 45.9 percent, Malaysia 37.8 percent, Thailand 22.3 percent, and the Philippines 3.3 percent.
Has the demographic bonus with 66.5 percent of the population are in the productive age range. This makes the demand for housing becomes very large.
The number of middle class continues to grow with increased quality of life will drive the property market and development of the area.
Property prices in Indonesia is still quite low compared to other ASEAN countries.
In 2017 the government will continue with the development of infrastructure that will encourage property sector.
Mortgage rates / KPA will continue to fall after Bank Indonesia (BI) change the format of the monthly BI to BI 7 Day Reverse Repo (weekly) and is currently at 4.75 percent level that would make the mortgage rate to a single digit.
Relaxation loan to value (LTV) will be lower.
The rupiah exchange rate stable and maintained at the level of Rp13 thousand thus making the price of imported building material is also more stable.
Inflation tends controllable and predictable for the government’s target in the range of 5 percent. Fuel prices also tend to be maintained so that the purchasing power is also getting better.

With these indicators Eddy optimistic to an increase in property sales by 10-12 percent. “This year up to September 2016 sale of our property only grew 5 percent, next year we are optimistic that the situation could be better with these indicators,” he concluded.

housing-estate.com

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