See the Opportunities and Constraints of The Property Business in Indonesia

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The property is one of the businesses that guarantee the certainty of the value of the benefit to the investor. This is mainly because these businesses cater to the provision of the basic necessities of human beings and the ever-increasing needs of the community of product properties.

Other opportunities are very promising is the rise in the price of land after the property was built. Usually, already an open secret that the developers of the property business would certainly benefit from the value of the land at least a doubling of the price of his acquisition.

Skyrocketing prices of these products caused increasingly limited land available.  The wide variety of products including home property (Town House, shop, cluster, office, apartments, pig sty alley), hospitality (condos, motels, villas, condotel), retailers (stores, hypermarkets, supermarkets, specialty store, mall, square, plaza, trade center) and other buildings (factories, offices and warehouses).

Indonesia Is A Potential Market For Product Properties

The reason the world's investors choose Jakarta Indonesia in particular and surrounding property as a place to invest because of need or demand, besides India and China economy slowed down as well as the limitations of market opportunities Australia and Japan in the property sector.

The progress of domestic economy consistently growing 6% per year. It is increasingly encouraging foreign investors increasingly vigorous struggled in the property business. 3 companies listed property developers world which began to turn to the Indonesia market. The company it comes from Australia, Hong Kong, and New Zealand.

Prospects Property Business In The Land of Water

Rapid growth in the property business in line with the domestic economy growing. Foreign investors investing in Indonesia, namely the purchase of the property sector in the form of product properties and securities of property companies nationwide.

Great opportunities this business is also considered by local investors. The magnitude of investor interest because of course see good look property business. The issue that is being experienced by the nation of Indonesia right now is not to satisfy the amount of demand for existing residential facility.

Based on statistical data, there is a shortage of House totaling approximately 15 million units. Demand for residence per year reaching 700-800 thousand units, while the developers are only able to provide more or less 400 thousand units.

The number of requests for this inequality is the proof of the prospects of the property still holds a huge potential. Price competition between entrepreneurs property also became a common thing. They try to offer economical price with luxury amenities.

This condition makes the attraction in the eyes of consumers. Often, consumers are buying property instead of to the fulfillment of needs but as a long-term investment.

The increasing market demand will be a quality residence with affordable rates currently has to inspire Lippo group to build a self-contained city covering an area of 500 Ha in the region of Cikarang Bekasi named Meikarta with a total investment of 278 Trillion Rupiah.

Constraints Property Business

Property speculation phenomena occurring in Indonesia be bad for investors. The existence of Mortgages (MORTGAGES) and ownership credit apartments does help society if used properly. But unfortunately, they instead utilize for the benefit of others.

Example 1 a lot of events the customer submits more than 1 MORTGAGE. Turnover is hampered by the existence of a phenomenon of this kind. Should the customer complete the 1 credit if you want to take your next property?

It is quite an impact on the number of cases of bad credit happens, where a customer cannot pay their mortgage on time, there's even a new pay settlement further stalled a few times, and finally, the properties are auctioned off by the lender.

As a result, the price of the product properties is slow the rate of price. This is due to the large number of users of the housing credit and apartment loan. The price charged not to follow the market price. That is, credit scores do not follow the movement of the price of the property.

In addition to the above problem, factors are not stable rupiah exchange rate against foreign currencies join the stoked investors on guard and take the attitude of wait and see, considering the price of building materials was strongly influenced by foreign currencies as well as any other impact IE is getting the fall in purchasing power.

Government policy over the issue of ownership of housing credit

On the initiative of the Government, since September 1, 2013, earlier, Bank Indonesia (BI) issued a policy on the ratio of MORTGAGE-related loans. This policy is a form of property crisis prevention in Indonesia. housing credit shall be controlled so as not to be abused for speculation.

BI-party banking prohibits giving lightening up credit facilities by way of granting credit cash advance. It also restricts the filing of MORTGAGES and KPA, i.e. only 1 per customer. In addition, a minimal amount of down payment MORTGAGE also raised to 30% and expected consumer interest in property purchase credits can be reduced and the switch to a cash system.

Excess cash system i.e. if calculated will be lighter than the credit. Any more investors benefited from the existence of this system. But if you don't have enough capital to purchase in cash. Housing credit and apartment loan is the solution, use to suit your needs.

Avoid obtaining unilateral advantages in business property. For property business with many parties in the chain of transactions. Starting from investors/owners of capital, contractors, marketing to finally get to the consumer.

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