JAKARTA still stands for the most favorite city that attracts local and foreign investor to invest in real estate business. Other metropolis such as Surabaya, Medan, Makassar, or Bali island are expected to follow up.
International Real Estate Federation (FIABCI) Secretary General for Asia Pacific Rusmin Lawin said it was indicated from residential yields in Jakarta that reached 11% - 12% a year, while grade A office’s yield were 10% - 12% a year.
“Both indications showed that Indonesia still becomes the most favorite investment destination, it will ensure that our foreign direct investment will keep growing,” he told Bisnis on Wednesday, May 02, 2012.
Knight Frank Indonesia Senior Research Manager Hasan Pamudji said with relatively affordable property price compared to Singapore, Indonesia will potentially attract global investor due to relatively high price increase opportunity.
In The Wealth Report 2012 released by Knight Frank Indonesia, the average premium residential in Jakarta and Bali per Q4/2012 were only US$2,900 per square meter, Singapore were US$25,600 per sq. meter while Bangkok were US$6,500 per sq. meter.
Hasan predicted the property price will increase by 5% - 10% per year in average, noting that Indonesian economic and politic conditions are relatively the same with the current condition.
Meanwhile Globalpropertyguide.com website stated that yields in apartment leasing business in Indonesia were 10.21% a year, way above Singapore which only 2.94%. (T07/msw)
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