Property buyers in Indonesia remain confident of market conditions in the country, according to a new property sentiment survey by Rumah.com for the first half of 2014.
Of the 922 respondents polled, 65 percent are quite satisfied with the property climate so far this year, an increase from four percent previously.
The reasons for the greater optimism include strong economic growth in Indonesia and the potential of a new government come October.
At the same time, Indonesian property is still considered a profitable long-term investment with the prospect of higher capital gains.
But many Indonesians feel home prices should be more affordable, with six out of 10 respondents calling for the government to introduce regulations in the market, especially in cities such as Jakarta, Denpasar and Surabaya.
Compared to 2013, prices of all property types have increased and this applies to rents as well. Approximately 50 percent of respondents expect prices to keep rising in the next six months.
Meanwhile, there continues to be strong demand among Indonesian-based investors for local investment property, with 97 percent of respondents choosing to purchase in Indonesia, while only three percent would consider investing overseas.
Properties popular among Indonesians looking abroad are apartments and condominiums (51%), with Singapore as their most favoured destination (21%), followed by Japan (20%), Australia (17%) and Italy (7%).
Jessica Effendi, Head of Operations, Rumah.com said: “2014 is predicted to be a challenging year for several industries in Indonesia, including property. Holding the legislative elections and the presidential election caused investors to be careful when choosing investment instruments.”
She added: “The potential of a new government also gives hope for the respondents in terms of regulation and property development in Indonesia.”
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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