Investors in Indonesia are driving up the prices and values of property in the country and region as they shift more money into real estate from bank deposits, according to Housing Minister Yusuf Asy´hari in an interview with Reuters. Many wealthier investors are looking for higher returns than their low yield bank deposits, and real estate is benefiting. According to the Indonesia Property Study Center, property prices are up about 12 percent so far this year.
Prices in and around Jakarta for residential property have increased substantially over the past year, according to the minister. “The property sector attracts a lot of attention. When we talk about investment, we talk about choices. Investors will certainly shift their funds into higher-yielding investments,” Asy’hari told Reuters. He continued, “The bank deposit rates are low, that’s why they shift their investment into apartments,” and also added that demand for landed housing was also strong.
The government of Indonesia is promoting real estate and the construction of new homes as it targets a total of 1,000 new apartment blocks in the next few years. The investment in these new building projects will amount to some US $5 billion and be spread out across the many islands of the nation. It is hoping that the rising property values and a favorable tax rate will help to spur increased construction and lure developers to build new homes.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.