Real estate investors from China, Australia, Europe and the USA have all invested in Indonesian real estate recently, so it should come as no surprise that property buyers from Taiwan are following suit. What is surprising is the fact that Taiwanese investors appear to be more confident in ASEAN property markets than their home turf.
Domestic real estate transactions in Taiwan were at record lows last year, but a recently released report from Chinatrust Real Estate, a Taiwanese real estate outfit, showed the number of property transactions closed in ASEAN countries increased by 43 percent from 2015 to 2016.
Not only are Taiwanese investors purchasing properties in resort destinations such as Bali, but locations like Jakarta are also proving to be popular.
One of the reasons for the increase in Taiwanese investment activity in Indonesia is due to the New Southbound Policy that made it easier for companies and individuals to invest in several Southeast Asian countries. Taiwan even opened a trade office in Indonesia to help facility economic ties.
Investment from foreign developers also rising
Nearly 18 months after Indonesian President Joko Widodo signed a government regulation to allow foreigners to own property in the country, the results have been positive. The new rules helped the country be more competitive with its ASEAN neighbours when it comes to attracting foreign homebuyers.
International property developers also set up shop in Indonesia in 2016 with signs pointing to the country’s residential market turning around in the next year or two. China Communications Construction Group, Japanese homebuilder Mitsubishi Corporation and Malaysia’s Sime Darby Group are among those entering Indonesia.
International investment from developers totalled USD 2.8 billion with Sime Darby and Mitsubishi Corporation among those who are partnering with local partners on projects. Their hope is that a growing middle class and rapid urbanization will kick start the country’s property market.
