Wednesday, 14 Zulqaidah 1440 / 17 July 2019

Wednesday, 14 Zulqaidah 1440 / 17 July 2019

Indonesia still main property investment priority in Asia

Senin 10 Mar 2014 17:15 WIB

Red: Julkifli Marbun

Some workers build a skyscraper in Jakarta. World Bank cut growth projection of Indonesian gross domestic product (GDP) due to moderation of investment growth. (illustration)

Some workers build a skyscraper in Jakarta. World Bank cut growth projection of Indonesian gross domestic product (GDP) due to moderation of investment growth. (illustration)

Foto: Republika/Wihdan Hidayat

REPUBLIKA.CO.ID, JAKARTA -- Indonesia still remains a priority for investment in the property sector when compared to other countries in Asia, Sinar Mas Land's Managing Director for corporate strategy and services Ishak Chandra stated.

"Based on data and analysis, Indonesia is still the main country for investment priority," he noted here on Monday.

Jakarta is the third in Asia after Kuala Lumpur (Malaysia) and Bangkok (Thailand), he added.

In terms of gross rental yield per annum, Jakarta is ranked second at 7.05 percent a year after Manila (the Philippines), which is at 7.06 percent.

The figure is high compared to those of other countries because the third gross rental yield per annum is held by Bangkok at only 6.29 percent, he explained.

With regard to kinds of properties, he noted that the demand in Indonesia will rise this year for rental offices and strata-title offices.

"Demand for industrial zone property will drop while for others it will be stable," he clarified.

He stated that Sinar Mas Land is specially monitoring office, condominium, industrial, retail and housing development projects in Jakarta in 2014.

He added that the property sector will continue to grow this year although its growth may be slower than in the years before.

He stated that Indonesia's property sector is still away from being in a bubble since it?s marked by increasing prices of houses due to rising demand and speculation.

"The price hike is like a bubble which will become bigger. At a certain point it may strop growing or there will be oversupply, bringing the prices down.

That is when bubble is considered shrinking," he explained.

In connection with that he explained property companies must be sensitive towards the development in the industry in Indonesia, he stated.

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