Indonesia’s Property Market Stable

In late June 2009 it was revealed by The Jakarta Post that unlike many of its Asian neighbours, Indonesia’s property market is stable.

It is speculated that because the country is slightly less financially institutionally developed than China, Singapore and Japan, it has escaped many of the ripple effects of the global credit crunch, such as a failing property market and properties hitting negative equity. Contrasted to Hong Kong, which is predicted to go into deterioration, meaning investment property are giving it a wide birth.

Indonesia in the last few years has also maintained a steady economic growth, it never ‘boomed’ as big and as quick as its neighbours meaning that it cannot suffer a ‘bust’ in the way many other countries are and have been unfortunately able to. This means that whilst investors are not risking their money in other countries in Asia, Indonesia is said to remain a safe bet.

The Bank of Indonesia has been implementing measures to help stimulate the economy. It has been steadily lowering the interest rates for the past few months and so too have interest rates on bank loans and deposits dropped.

“The lowering of the BI rate is expected to eventually increase demand in the property industry, especially for the housing and apartment sector. Apart from this, the successful legislative election is expected to regenerate optimism and confidence for both end-users and investors.”

The steps taken to protect Indonesia couple with the nature of its pre existing economy before the recession mean that its property market is much safer than larger Asian countries. This is good news for investors because there is still the potential for money to be made, and good too for those looking to own a part of Indonesian luxury as prices are currently low, making now a tempting to buy.

About DSR Asset Management Ltd

DSR Asset Management Ltd is an overseas property specialist, working directly with developers in more than forty countries. All properties are exclusive to DSR, giving an unparalleled selection of resale and new builds.

David Redfern is the director of DSR Asset Management Ltd an overseas property investment specialist. David works closely with developers in more than forty countries and oversees the DSR. education programme which lectures individuals and organisations on property investment.