Could 2020 Be The Year To Invest In An Apartment?

Could 2020 Be The Year To Invest In An Apartment?
Photo-by-chuttersnap-on-Unsplash
Photo by chuttersnap on Unsplash.

Indonesia’s property market is expected to enjoy a good year in 2020, primarily because “the government loosened the loan-to-value ratio on residential properties by 5% and issued an exemption on luxury tax increment for residential properties valued under IDR 30 billion – around USD 2.2 million – at the end of 2019,” says the Jakarta Globe.

Political and economic stability

Marine Novita, Country Manager for Rumah.com believes Indonesia is “entering a more stable political and economic climate and the property market will no longer take a ‘wait and see’ approach. Both prices and supplies are expected to increase in 2020,” she predicts.

According to Jakarta Globe, the Rumah.com Indonesia Property Market Index (RIPMI) suggests there has been steady growth in the demand for both landed houses and apartments with prices growing only slightly over the past two years.

The report would suggest Jakarta recorded a 1% decrease in the price index in Q4/ 2019 (quarter on quarter) and 2% (year-on-year).

New markets on the rise

A number of factors impact the price index, beyond market saturation. Something that may be contributing, claims Novita, could well be developers targeting new market segments.

For example, “around 5-10 years ago, apartments were sold as a lifestyle commodity. Now, apartments are being sold to various groups, not only the upper-middle class, but also the lower-middle class,” Novita said.

Surge of supply

And it’s these non-lifestyle commodity groups who are pouring into the country’s urban areas in search of work and opportunities. It’s interesting to note that areas where apartments have been fetching high median prices have also been those places where the greatest price adjustments have been taking place, which some analysts say is because of the “surge of supply in those areas.”

But those doing the surging aren’t necessarily the ones the developers originally had their eyes on.

Improved infrastructure and interest in the suburbs

Parallel to this trend is an increased interest in suburban areas, which correlates to a significant improvement in intra-city infrastructure across Indonesia.

The Jakarta Globe report say Novita believes the main attraction for apartments as a lifestyle commodity for the middle-upper class segments has traditionally been because of strategic locations and this has always been in or close to city centres.

However, as infrastructure development gains speed and toll roads, light rail systems and public transport are introduced and improved, consumers are starting to consider buying homes rather than apartments further away from the often polluted and overcrowded centres of town.

“This has caused apartment sellers to reformulate their selling points and main attractions [and] …to compete with suburban landed houses, apartment prices have to be adjusted,” Novita said.

And this means this could be a great time to consider investing in apartments I places like Jakarta, Bandung and Banten before the market balances out and prices begin to rise.

Source: Jakarta Globe

#sevenstonesindonesia #property #IndonesiaApartments #realestate #IndonesiaInvestment #PropertyInvestment #indonesiaproperty

Latest Article
Govt Allocates More Subsidies for Electric Motorcycles
According to reporting from Antara News, Dadan Kusdian, Indonesia’s Secretary General of the Ministry...
Netherlands Consider Easier Visas for Indonesians
Citing Antara News, Tempo is reporting that Indonesia and the Netherlands discussed strengthening consular...
Ministry to Implement KRIS at 3,060 Hospitals by 2025
Indonesia’s Health Ministry is targeting to get more than 3,000 national hospitals to implement...
Hospital-based Specialist Doctor Program Launched
Speaking at the launch of a hospital-based specialist doctor program on Monday (6/5/24,) Indonesia’s...
Indonesia Anticipates Prabowo’s Cabinet
Prabowo Subianto and Gibran Rakabuming Raka will be sworn in as the country’s new president and vice...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

[wpforms id=”43785″]

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.