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REI expects property sector to recover next year
The real estate sector posted 3.58 percent growth in 2018, the lowest rate since 2014 after which the sector averaged 5 percent growth per year.
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Apartment towers fill Jakarta's skyline. Property developers hope to see a recovery in the property sector next year. (tempo.co/Tony Hartawan)
R
eal estate developers hope the government’s recent push to attract investment through regulatory reform will help revive the property sector, which has spent years in the doldrums.
The chairman of the Indonesian Real Estate Developers Association (REI), Soelaeman Soemawinata, said many property companies had begun to develop new projects as they believed improvements to the investment climate would boost economic growth that would, in turn, drive demand in the property sector.
“There are hopes the property sector will recover. Many developers have taken the initiative to kick start projects so that the property [sector] can flourish again,” Soelaeman said in Jakarta on Nov. 27.
The downturn in the real estate sector was close to its lowest point, he said, adding that industry players expected to see a turnaround soon.
He said the wait-and-see attitude shared by businesspeople should begin to wane, as President Joko “Jokowi” Widodo had retained his seat in office and formed a Cabinet with the top priority of attracting investment to create jobs.
According to Statistics Indonesia (BPS) data, the real estate sector posted 3.58 percent growth in 2018, the lowest rate since 2014 after which the sector averaged 5 percent growth per year.
However, recent data show signs of recovery. In the third quarter this year, the real estate sector grew 5.73 percent year-on-year (yoy), higher than the GDP growth rate of 5.02 percent during the same period.
