Developers Aim to Lower Medium Segment

                            

Yogyakarta – Regional Executive Council (DPD) Real Estate Indonesia (REI) Special Region of Yogyakarta (DIY) will more lower-middle segment to increase sales target property in 2017.

“In 2017, we will reorient the supply of housing products to better focus on the middle and lower segments,” said Chairman of the Council of Real Estate Indonesia (REI) DIY, Nur Andi Wijayanto, in Yogyakarta, on Tuesday (20/12).

According to Andi, middle and lower segments ( middle-low ) is the only segment of the sale of property that is not contracted in 2016 compared to other segments.

“In this segment, there is a wide range of fiscal incentives from the government, one of them a zero percent tax to VAT and simplification permits to the extent of the area below five hectares,” he said.

He said, for the current subsidy for DIY home still in the range Rp116,5 million. He hoped that the value can be reviewed in order to condition the high land prices today could play a role to support the program of one million homes with good government.

Andi Nur said a September 2016 home sales by developers DIY REI members is still below 1,000 units, far below the target this year reached 2,200 units.

According to him, the reduction or contraction in the property sector by 30-40 percent occur in homes with a sales price of Rp500 million and above. As for the middle-segment house down with the price of Rp 300 million to the bottom, including subsidies for home / FLPP not experience a significant contraction.

In fact, according to Andi, if seen from the data provision berdasarakan property in DIY market segmentation, to 500 million in home prices to bottom (segment middle-low ) only reached 15 percent. While the house at a price of Rp500 million to Rp 1 billion (middle up ) reached 65 percent, and the house at a price of Rp 1 billion to reach 20 percent.

/ FER

                            

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