Property Business in Indonesia: Perception and Decision

Perception: Property Business in Indonesia

Perception: Property Business in Indonesia

Our current member of CoHive Coworking Space, the Country Manager of for Indonesia, Irvan Ariesdhana, shared about the opportunity of property investment in Indonesia. Based in Singapore, is an end-to-end company that uses technology and data science to provide home-seekers a radically honest, transparent and delightful experience. When they expanded to Indonesia, decided to change their business model into Business to Business to Consumer (B2B2C) to understand better the needs of all parties involved in a property transaction.

As we know, Indonesia is one of many developing countries that have experienced swift growth in various industrial sectors, including the property sector. In this light, Mr. Irvan explained that the demand for property especially for houses in Indonesia, has increased very rapidly. However, the motivation of property acquisition in Indonesia is more for personal ownership, less for investment.

For the citizens of Indonesia, the location of the property is the main variable to determine the decision to have a property, which was followed by the price of the property. In contrast, citizens of Singapore care more about the price of the property than the location. The nominal of the property price in Indonesia can be misleading, mostly due to the inflation. Local residential property has attracted both Indonesians and foreigners to invest their wealth in property industry. Mr. Irvan mentioned there are  in total 400 units of property available on the platform, about 40% of them consists of apartment buildings, while the rest are land houses. The majority of the consumers are of middle to lower economic class, with more than 80% of them buying their properties through non-collateral credit scheme.

In 2016, the investment property is getting better compared to the previous year. It could be seen from several indicators. The first one is the Growth Domestic Product or GDP in Indonesia has increased. Indonesia has a good stability for investment, so there are more opportunities for investors from other countries to put their investment in Indonesia. In the property there are 50% increase in investments compared with the previous year. This is a piece of good news for investors, both domestic or foreigners. Secondly, the government provided tax amnesty that has been stimulating a good investment in this year. Asian Development Bank and the World Bank predict that Indonesia is in a phase where the nation will enjoy the growth of the economy in the range of 5.3 to 5.4%. The property market will grow better in a positive direction and create a widescreen investment to reap large profits with continued favorable conditions and continue to improve this year. On top of it all, Mr. Irvan also mentioned that the development of property industry will be increasingly valuable as there will be more demand in the future.


You can visit page here.

Leave a Reply

Your email address will not be published. Required fields are marked *