Logo of Phnom Penh Post newspaper Phnom Penh Post - Indonesia home prices to trend up over next two years, Moody’s says



Indonesia home prices to trend up over next two years, Moody’s says

Content image - Phnom Penh Post
A subsidised housing development in Bogor, West Java, Indonesia on January 6, 2020. ANTARA

Indonesia home prices to trend up over next two years, Moody’s says

Indonesian home prices will see strong growth in 2022 and 2023, financial intelligence firm Moody’s Analytics has predicted, following a long period of muted growth exacerbated by the Covid-19 pandemic.

Moody’s expects the country’s home price index to grow five per cent next year and six per cent in 2023. This year, the index is expected to post only about 1.5 per cent growth.

This year, the country’s home price index will fall below the 4.42 per cent average growth among selected Asia-Pacific countries, but the index is expected beat the forecast regional averages of 3.45 per cent and 3.64 per cent growth for 2022 and 2023, respectively.

The housing price index has seen sluggish growth since at least 2015, growing by less than five per cent year-on-year on a quarterly basis, Bank Indonesia (BI) data showed. On an annual basis, growth above six per cent was last seen in 2014.

Moody’s Analytics economist Sonia Zhu attributed the expected rise in house prices to pent-up demand and favourable real estate investment policies, including low interest rates, tax incentives, and relaxed restrictions on foreign ownerships, all of which would raise demand in 2022 and 2023.

“However, the projected high growth is also due to the low-base effect from 2021. The Delta surge in the third quarter of 2021, lockdowns, and the weak labour market are weighing on the house price index for 2021,” she wrote in an email to the Jakarta Post.

The central bank is expecting housing prices to creep up still more slowly in the July-September period, largely as a result of Covid-19 restrictions imposed in response to a July case surge.

THE JAKARTA POST/ASIA NEWS NETWORK

MOST VIEWED

  • Omicron patients can stay home: PM

    Prime Minister Hun Sen has given the green light for anyone who contracts the SARS-CoV-2 Omicron mutation or any other variant to convalesce or receive treatment at home or in any other reasonable non-healthcare setting. The new decision supersedes a restriction on home care for

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Demining rat ‘hero’ Magawa dead at 8

    A landmine-hunting rat that was awarded a gold medal for heroism for clearing ordnance from the Cambodian countryside has died, his charity said on January 11. Magawa, a giant African pouched rat originally from Tanzania, helped clear mines from about 225,000sqm of land – the equivalent of 42

  • Hun Sen gets 4th Covid shot, urges compatriots to follow

    Prime Minister Hun Sen and his wife Bun Rany on January 14 received their fourth dose of Covid-19 vaccine and called on compatriots to follow suit as the Omicron coronavirus variant continues to spread in the community. This marks the launch of Cambodia's fourth-dose vaccination campaign,