Residential property market in Indonesia seems to be far away from the word ‘quiet’. Even though some factors like economic condition, politics, and credit interest rate influence property market growth but are not affecting Indonesian market as much. According to the data from Raymond Arfandi, Head of Indonesian Real Estate Union (REI) in South Sulawesi forecasted that this year’s growth in South Sulawesi could reach 25%, where the growth will be dominated mostly by properties from middle to upper class. Same thing happens in Surabaya, where the most active transactions for house trade happens in upper premium class where the price is above 1.5 billion Rupiah.
Some dissimilarities can be found in residential market in Jabodetabek area. According to the data from Kompas, property exhibition held over on mid February 2014 in Jakarta Convention Center documented a significant transaction for residential value with a range below 500 million Rupiah. An explanation from Panagian Simanungkalit, national property observer which is also the Executive Director of Indonesian Property Study Center concluded that price range between 300 to 600 million Rupiah is the most promising for Indonesian property market, considering the amount of citizen in this segment is more significant compared to the upper segment.
Many options like cash money or applying for credit from bank can be singled out in buying a living place. To answer that, make sure to have an honest view of your own economic condition. According to a source from Tabloid Rumah, if you have a healthy financial ratio and emergency backup fund, selecting cash option is more profitable because of the stable property price growth of 15-20% annually. However, if the amount of your cash budget is still insufficient, a loan from bank can be an alternative. Yet, financial ability in paying the down payment and monthly installment need to be observed carefully. In short, it is advisable to have emergency backup fund as protection features. Furthermore, make sure that the decision on funding your installment is adjusted to your monthly needs and expenses. If you have extra budget in the long run, it is better to pay the rest of the installment loan to avoid future debt.
Residential property market in Indonesia not only charms the locals, but also some expats that lives in the country. A lot of expatriate that have already been living in Indonesia for long are also interested to own a house as residential property or as investment instrument. From some cities in Indonesia, Jakarta, Bali, dan Batam and Batam are some favorite area picked by expats. However, government regulation about property ownership for foreign citizen is still limited for usage right, right of commercial use, and right of lease. Nonetheless, some foreign citizens are able to own properties by using over local citizen’s name, for instance from spouse or family. Another possibility is to use the name of foreign company name or foreign investors.