The property figures can be quite misleading when it comes to the properties of Indonesia. One reason behind this is the fact that inflation in Indonesia is quite high and also continues to stay high. Many of the residential properties in Indonesia have been quite attractive to the rich class of Indonesia because of the protection it can offer against the inflation taking place in the country. The prices of the properties in Indonesia has continued to rise, or they appear to rise, as judged by the asking prices.
Real estate in Jakarta:
In fact, the market of real estate in Jakarta has now been in turmoil for a number of years. It went through the greatest increase in the price of real estate than any other city in the world. Many of the cities of Asia have been dealing with the rapidly advancing prices of properties, however, Indonesia’s capital, Jakarta, has been on the top of the list. There is a reason behind all of this. Firstly, the population density in Jakarta is quite high and it has been increasing each year. This has created a great demand for property throughout the city. But, as the supply of the property available is insufficient to meet the high demand by the people, the prices of real estate have gone up. Interestingly, it has been estimated that the residential real estate available in the city Jakarta is just a quarter of the demand by the people.
About other cities:
The high demand for the properties will continue to increase as the population of Indonesia is young and large. This means that there are a lot of people still left that have not yet bought their own house. Moreover, the higher standards of living and urbanization has also contributed in the increase in the demand of property. However, now, the focus has started to other regions as well. Primarily, the focus was on Jakarta, Bandung and Surabaya but now it has started to shift to cities such as Tangerang, Palembang and Bekasi.
Decline in the prices:
While all of the major cities of Indonesia saw an increase in the prices of property, there were some where the prices declined. Some of the cities registered a rise in the prices so small that it was actually the decline in value if you talk about it in real terms. One such city was the city of Medan.
On the other hand, the development of properties in the secondary cities and the suburbs has been booming lately. This applies to not only the supply side, but also to the demand size. These developments are happening in the form of houses, condominium, apartments, shops and malls. These prospective cities include Semarang and Yogyakarta. Large scale development of property is also now visible in cities like Makassar, Tangerang Selatan, Pontianak and Balikpapan.
For more information on the real estate prices in Indonesia and for making an investment, you can always visit Rumahku.com to get all of your questions answered.
