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Most consumers satisfied with Indonesian property market in 2017

Jakarta Post | September 14, 2017
 The Islamic Chamber of Commerce , Industry and Agriculture (ICCIA)

Despite the slowing economy, most Indonesians remain satisfied with the property market in Indonesia, according to the latest property survey report by local property portal and Singapore-based research firm Intuit Research.

The Property Affordability Sentiment Index for the second half of 2017 survey showed that 63 percent of respondents were satisfied with the Indonesian property market in the first half of 2017, a sound result although lower than in the second half of 2016, when the satisfaction rate stood at 66 percent.

“Through surveys such as the Property Affordability Sentiment Index H2-2017, we can provide a high quality account of consumer decisions to buy houses or other residential assets,” said head of marketing Ike Hamdan in a press statement on Wednesday.

Consumers, she continued, were happy with the Indonesian property market because of the trend of increasing prices in the property market, aside from the high return potential for long term investments.

The growing economy, which is predicted to reach 5.3 percent growth this year, the successful tax amnesty program and Indonesia’s status as the country with the largest gross domestic product (GDP) in Southeast Asia also contributed to the respondents’ satisfaction, Ike explained.

“The large GDP is not in line with the number of mortgage loans [KPR] in Indonesia. The ratio of KPR to GDP is very low at 2.8 percent in 2015, far lower than Singapore at 45.9 percent, Malaysia at 37.8 percent, Thailand at 22.3 percent and the Philippine at 3.3 percent,” she said.