Household wealth, especially in Asian countries, are very much tied to property assets.

If there is such a strong connection between wealth and property, how has the property value performed in Indonesia?

 

 

Property Prices

Even prior to the pandemic, the property prices in the last 5 years have been subdued in real terms. The growth in property prices have not kept up with inflation rate.

 

 

Views on Property Investment

If so, what makes property still an attractive investment? Many reasons.

1. Passive Income (Rental Yield)

Rental yields vary across region. Compared to other Asian countries, gross rental yield for an average apartment in Indonesia are quite high.

 

 

2. Capital Gain (Off-Plan Purchase)

Property value tends to grow most when purchased off-plan, compared to purchase post construction.

For instance, some Vasanta Innopark apartments are now marketed approx. 20-30% above their off-plan selling price.

 

 

3. Stability 

Property investment shields Investors from financial crisis, as well as hedging against inflation.

As a matter of fact, the properly value across major economies have actually increased sharply in recent months despite ongoing pandemic.

Globally, the rate of increase has reached a record high in the last 30 years.

 

 

 

Is it about time for the property market in the country to rebound?

Just as the influential Robert G. Allen said, “Don’t wait to buy real estate, buy real estate and wait.”