Waiting for Government Policy in the Middle Deterioration

In the third quarter of 2016, the residential sub-sector is arguably the worst sub-sector. Colliers International said the growth of apartment prices in the Jakarta area slowed
and not as fast as the increase in prices in the previous years. Director of Research Colliers International Indonesia, Ferry Salanto stated that the growth of apartment prices only 4.6% year on year.

Property Magazine Indonesia discussed in detail in the November issue of 2016. Though he usually rise that could reach up to 10% per year. Rowe, the record is still fairly reasonable and healthy than any of the property market. “Despite the weak demand, prices for apartments are not likely to fall. Instead, the price will be flat, “said Luke.

Research conducted by JLL pointed out, if the price of luxury apartments is currently at an average position of Rp59 million per square meter. While the price of upscale apartments-on around Rp44 million per square meter, upmarket Rp37 million per square meter, middle-class Rp30 million per square meter and the lower middle class of about Rp 15 million per square meter.

In fact, research by Colliers previously said that if during the third quarter of this year, Jakarta will receive additional new supply of 3,317 units of six projects. So now the total supply of 171 041 units, growing 2% (QtQ) and 12.2% (YoY).

While in the rest of this year, it is estimated there will be increase the supply of 7117 units again. Thus the total new supply this year reached 21 224 units, lower than the earlier projection that reached 26 583 units. Meanwhile, until 2020, there will be a projected increase supply by 77 128 units to be completed.

Seeing the performance of sub-sectors of the apartments that do not take off, while new supplies continued to arrive. Ferry wish there was some encouragement in the form of government policies that are likely to make the market more passion. A number of the policy, he added, among others, is like a tax amnesty program success and reduce the final income tax for the property. Ferry also highlight the monetary policy seems to want to hinder the purchase of apartments by “cashinstallment” (cash installment) because it is considered to make developers be as though such a bank so that the rights of consumers in the future is also not guaranteed.

Earlier, Director General of Housing Finance the Ministry of Public Works and Public Housing (Ministry-PUPR) Maurin Sitorus said the simplification of licensing by the government will reduce the cost to build a house for the developer.

Maurin reminded that the government policy related to the housing sector include the simplification of licensing from 33 to 11 stages and from 769-981 days to 44 days. According to him, such a move it is hoped will in turn lowers licensing costs by about 30%. MPI / MRR. The digital version can be accessed via MPI http://ift.tt/2eatRRo or http://ift.tt/2ewFNxN more practical and more economical .

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