Buoyed by a strong
domestic demand for housing and increasing property prices, Indonesia is seen
as the leader in Southeast Asia residential market, according to a new Jones
Lang LaSalle report.
The 21 percent annual
increase in prices recorded by Jones Lang LaSalle in 2012 suggests that the
country’s real estate economy is on the rise, ahead of other emerging markets
like the Philippines and Thailand.
The country, whose capital Jakarta was recently named the world’s top city in the luxury segment by Knight Frank, is now only behind Singapore as the largest real estate market in the region, reported The Jakarta Post.
The country, whose capital Jakarta was recently named the world’s top city in the luxury segment by Knight Frank, is now only behind Singapore as the largest real estate market in the region, reported The Jakarta Post.
Based on data provided
by the Asia Pacific Real Estate Association (APREA), Indonesia’s property
economy is estimated to reach USD1.9 trillion in 2031, a significant growth
from USD189 billion just three years ago. New stock slated to enter the market
between 2016 and 2019 will also contribute to the country’s growing property
market.
Despite Indonesia’s
favourable performance, Jones Lang LaSalle country head, Todd Lauchlan, cites
infrastructure challenges, including the country’s tropical weather, as
potential hurdles for investors, but he is optimistic that those challenges are
not insurmountable.
“Even small changes in
infrastructure like road-widening, land acquisition for toll roads, finishing
of toll roads, would allow for much more efficient execution,” Lauchlan said at
the Royal Institution of Chartered Surveyors (RICS) ASEAN Real Estate and
Construction Summit held in Jakarta last Tuesday.
Source:
www.property-report.com
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