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Property market to remain sluggish despite incentives
The growth of property market is expected to still be below 10 percent.
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Jakarta landscape is pictured in this undated photo. Real estate consulting firm Savills Indonesia research and consultancy head Anton Sitorus said he expected the country’s property market to remain the same this year despite the stimulus as demand would remain week. (Shutterstock.com/Creativa Images)
T
he government has issued a number of incentives including a higher tax threshold and the reduction of down payment requirements but analysts believe they will not be enough to revive the country’s sluggish property market.
Real estate consulting firm Savills Indonesia research and consultancy head Anton Sitorus said he expected the country’s property market to remain the same this year despite the stimulus as demand would remain week.
He said the stimuli provided by the government and Bank Indonesia (BI) would not have much impact on property sales because the current property prices were still considered too high.
“Those incentives and stimuli are not working at their maximum effort,” he said in Jakarta on Dec. 20, 2019.
Even though the global economy looks to be on the track to recovery, Anton continued that the growth of the country’s property market would heavily depend on how developers devised their pricing strategy.
“I don’t see much change this year because the current prices are already too high,” he said, adding that with the high prices the returns received by investors would be limited.
For commercial property developers, this year will be more challenging because the demand will also remain low especially for retail outlets as many customers have turned to online marketplaces to buy their daily needs and other necessities such as clothes and shoes.
