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Jakarta Post

Tax cut supports sales of luxury houses

  • News Desk

    The Jakarta Post

Jakarta   /   Sun, July 7, 2019   /   06:01 pm
Tax cut supports sales of luxury houses Apartment towers fill Jakarta's cityscape. (Tempo/Tony Hartawan)

Fiscal incentives in the form of a tax cut introduced by the government resulted in a slight increase in sales of luxury homes and apartments in June and early July, according to property marketing firm Lamudi.

Lamudi recorded that sales of homes with prices starting from Rp 10 billion (US$710,985), such as those in South Jakarta -- Pondok Indah and Kemang – as well as those in Menteng, Central Jakarta, had increased by between 2 to 4 percent in June and in the first week of July.

The government issued a finance ministerial regulation to revise the threshold of super luxury houses from Rp 20 billion (US$1.37 million) to Rp 30 billion.

The government also reduced property tax for luxury homes to 1 percent from 5 percent.

Lamudi.co.id commercial director Yoga Priyautama said the policy was “fresh air” for the property business, particularly for high-end consumers.

“In the past, developers found it difficult to market homes to the high-income segment, not because of low-purchasing power, but because of unstable political conditions,” Yoga said as quoted by tempo.co.id, adding that the new regulation had encouraged developers to start new construction projects targeting the rich.

“In the past four years, many developers did not want to take risks. Most of their products were only for middle-class customers because the segment was [hardly] affected by the political and economic condition.”

Meanwhile, 13,757 properties were listed on Lamudi.co.id, with prices starting from Rp 10 billion. Those houses are located in Pondok Indah, Menteng, Kemang, Puri Indah and Kebayoran Baru, among other areas. (bbn)