Indonesia shows signs of promise for overseas investors.
Asia is considered to be an emerging market with potential. This is drawing more investors looking to dip their toes into countries that may not be their homeland. High yields are luring people to Indonesia, in addition to Cambodia and the Philippines. The reason? Well these countries are experiencing signs of maturity. Healthy economic growth, rising urbanisation and a young population are all key factors spurring this on.
Plus on top of this, these countries offer lower price tags that the traditional strong markets across that region such as Australia and New Zealand. Despite both of these markets growing at a good rate, investors need to have good finances to become property owners and need to meet strict criteria should they need to lend as part of the purchase.
Other lucrative markets in the region are on the receiving end of government interventions in an attempt to cool rising prices. This is the case for both China and Hong Kong. Despite implemented measures prices are still spiralling upwards in Hong Kong. Additional stamp duties have been introduced as a way to slowdown the market but there still remains a real thirst for property here. Whereas in China the intervention is working. House price growth is decreasing and so the market is losing its appeal for investors.
For Indonesia, the market shows signs of promise. A tax amnesty was introduced at the beginning of the year by President Joko Widodo. The purposed was to welcome foreign investors and to inject more money into infrastructure. The improvement of which has a positive knock on effect to the property market. Plus confidence is strengthened for investors looking for indicators to show development of the country.
Whilst some investors are holding out to see how the year pans out, the market is considered to be entering a level of maturity. Last year growth was reported at 2.4 percent year-on-year. Plus developers are looking to diverse their portfolios to cater for the demand of property needed across the board. This creates more opportunity for investors to purchase property suited to their budgets and needs.
If you are looking to invest in a property in Indonesia, then have a browse at Dot Property’s comprehensive listings online here.
