Foreign developers keen on Indonesia's property market

A number of foreign developers have laid eyes on Indonesia’s property market owing to the country’s massive population and economic growth of 5.5% - the highest of South East Asia.

It has been reported, investors from China, Korea, Malaysia and Singapore have expressed interests in extending property businesses to Indonesia. The property project types they are interested in, vary from residential projects including apartments to commercial projects, such as shopping centres and industrial estates.

For example, the Singaporean based Pacific Star Holdings Pte Ltd., intends to manage one property project in the Sudirman Central Business District (SCBD) in Jakarta and another one in Bali.

This is as they cited data from the United States Trade Department, highlighting that Indonesia quarters the world’s fourth-most populous country with 253.60million people, as the reason for investing towards the country’s property sector. It selected Jakarta as the project site, owing to the city’s profitable nature for property development.

The big 6 Asian markets of 2014

Yesterday, BlackRock released its investment outlook for Asian equities and credit, where it was reported Indonesia, China, India, Japan, Korea and Taiwan are the significant markets to watch during the latter half of this year.

This is as it was claimed structural reforms remain to dominate the agenda and outlook for stock markets across the region.

China

The head of Asian equities at BlackRock claimed that the Chinese leadership continues to motivate the domestic reforms process, as there has been added value and risk as the year has progressed. This is particularly in the energy and industrial sectors.

India

The election win of the BJP may access India’s potential by rebooting its investment cycle. The decisive election result may improve government decision making and execution, which in turn would boost investment in energy and infrastructure, opening more employment opportunities.

Korea and Taiwan

According to a representative from BlackRock, Korea and Taiwan should be beneficiaries of global and improved export growth.

Japan

Japan remains to add liquidity even as the economy absorbs the increase in consumption taxes. Investors should expect more reform progress.

Indonesia

The market has delivered exceptional returns so far during 2014. However, Indonesia is currently under elections, with market positioning, valuations, plus the risk of negative surprise subsequent of the upcoming July elections adding some caution. Although, any sell-off following the election would be a buying opportunity.