Rumah.com, PropertyGuru Group's subsidiary-Asia’s leading property site released the results of Property Sentiment Survey H1 period (January-June) in 2014 that revealed the public response to the satisfaction of the real estate market development in Indonesia.
Overall, the climate of the property market in H1 2014 increased. This is due to economic growth in Indonesia that still going well and supported by the potential of new government after the elections, expected will encourage the development of the property.
Of the 922 respondents, 65% of them feel quite satisfied with the development of the property climate in the early two quarter of 2014, an increase of 4% from the previous quarter which is only 61%.
The main reason is the prospect of higher value (capital gain) which makes the property is still the element of a profitable investment for a long term. The second reason, property in Indonesia is considered to have a good structure and well constructed.
A total of 6 out of 10 respondents felt the government can make regulations that make home prices more affordable. It is revealed in various cities in Indonesia, especially in Denpasar, Jakarta and Surabaya.
For the price of the property, all property types increased compared to 2013. This applies not only for buy and sell transactions, but also for rent transactions. Approximately 50% of the total respondents said that property prices will continue to rise in the next six months.
50% of the total respondents said that property prices continue to rise in the next six months. Both residential and commercial properties are predicted to experience significant price increases.
88% of respondents stated they already have their own place, where four from five states already have at least one residential property. This means that property is still a form of favourite investment until today.
As for the location of choice for investment property, 97% chose to do it in Indonesia. Investing in foreign property only demand by 3% of respondents of the survey.
Type of property that been selected in overseas is apartment and condominium (51%). Location of property owned in overseas are Singapore (21%), Japan (20%), Australia (17%), and Italy (7%).
Increase in taxable value of property (NJOP) of land in Jakarta this year, makes the majority of respondents felt burdensome. A total of 54% think the increase resulted in property prices become too expensive and not affordable and 25% consider the percentage increase is too high.
Jessica Effendi, Head of Operations Rumah.com said "2014 predicted to be a challenging year for several industries in Indonesia, including property. Holding to legislative elections and the presidential election caused investors to be careful in choosing investment instrument. The property sector is still considered as an element of a profitable investment for the long term. The potential of new government also gives hope for the respondents in terms of regulation and property development in Indonesia grows. "
Launched in 2007, Rumah.com is an online property portal that provides search services to find the ideal property. In March 2011, Rumah.com acquired by PropertyGuru Group, the largest property portal website in Asia. Until now, Rumah.com has been visited by over 2 million users who viewed more than 15 million pages per month. Rumah.com, with more than 270,000 listings, is the website with the highest number of property options that ever existed.
About PropertyGuru Group
PropertyGuru Group is an online property portal group in Asia which is used by more than 11 million consumer properties, and show more than 91 million property pages and generating more than 350,000 options for real estate developers and agents advertisers each month.