things to know about indonesia’s residential market right now

Judges of the Indonesia Property Awards gathered in Jakarta last week to address press regarding the official opening for nominations for its third annual edition.

A highlight of the press conference included a presentation from Chairman of the judges Hendra Hartono, CEO, Pt Leads Property Services Indonesia, who gave his prognosis for the real estate market in the year ahead.

Hartono explained that market conditions are still “relatively soft and challenging, but Jakarta still remains a dynamic city in the Asia Pacific region. Thus, the Indonesian property market remains Jakarta-centric.”

Here are five things we learned about the country’s residential outlook from Hendra’s presentation:

1.Stock, sales and average prices are all steadily increasing

The selling rate is predicted to hover at around 89-90 percent, and the price will rise by 3-5 percent. By 2018, 9,000 – 14,000 new units are expected to come on the market.

2.There are some good growth opportunities

In particular, branded and mixed-use developments are increasingly popular. However, branded developments face some competition from a rise in condotel developments.

3.The tax amnesty will boost the sector

While Indonesia’s tax amnesty – ending at the end of March – will be felt across the board, the residential sector will be most benefitted with homes being a basic human need, Hartono said. The effects of the amnesty will last at least one year.

Asset repatriation is expected to boost high-end to luxury residential property the most, as such investors typically come from a wealthy family background.

Read more on www.property-report.com