Number of Residential Demand Still Exceed Supply Capacity

By : Ridwan And Aldi Firhand. A | Monday, October 16 2017 - 22:22 IWST

CEO Crown Group, Iwan Sunito
CEO Crown Group, Iwan Sunito

INDUSTRY.co.id - Jakarta- Crown Group's CEO and founder, Iwan Sunito, expressed his opinion about the current situation of the Indonesian property world.

According to him, with the amount of demand available, it can be said that Indonesia's property market is the largest in Southeast Asia.

"Government Policy And Balance between price and purchasing power plays an important role in stimulating the growth of property in Indonesia," said Iwan on the sidelines of his short visit in Pangkalan Bun, Central Kalimantan, (16/10/2017).

He added that there had been concerns that the Indonesian property market would experience "Bubble", but I did not see that Indonesia would experience it.

"The number of residential demand in Indonesia is still far above the ability of the developers in providing supplies," he explained.

According to Iwan, there was a slowing down after Tax Amnesty, but if we look at it, it is now starting to creep up, let alone the Indonesian government is currently trying to encourage the growth of the property sector with policies issued that will make it easier for people to have shelter.

"Coupled with mass-oriented residential policies will make the Indonesian property market, especially in Jakarta become more colorful with a variety of choices," said Iwan.

However, continued Iwan, which needs to be observed is, the price of occupancy offered must be directly proportional to the level of income and purchasing power of the current community in order to create a perfect balance.

According to data from the Ministry of Public Works and People's Housing at this time Backlog reached 13.5 million units. Meanwhile, the needs of new homes that are sourced from population growth and urbanization every year reaches about 800 thousand units.

Backlog conditions are also experienced by Australia, especially Sydney, where the supply amount can not keep up with the number of requests. Even the backlog experienced by Indonesia is even much higher than that faced by Australia, which is about 50,000 occupancy per year.

To keep in mind is that the price offered to consumers in Australia is in line with the purchasing power of its people, so the balance takes place, which eventually makes the Australian market one of the best for property investment in the Asian region.

"As long as the balance point is created, I believe the property market in Indonesia can be one of the strongest in the Asian region in the next few years," lid Iwan.

News Comment

Today's Industry

menperin Airlangga Hartanto

Rabu, 22 November 2017 - 23:18 WIB

Government Will Generate 1 Million Skilled Workers Until 2019

The Ministry of Industry (Kemenperin) targets 1,142,752 certified workers in 2017-2019. These efforts will be pursued through various strategic programs, namely the implementation of vocational…

Ilustrasi ATM BNI

Rabu, 22 November 2017 - 23:00 WIB

BNI is Ready to Market Healthy Savings

Jakarta - Payment of dues Social Security Administering Body (BPJS) Health continues to be made easier. This time, PT Bank Negara Indonesia (Persero) Tbk or BNI publishes savings products that…

IMF (Foto Ist)

Rabu, 22 November 2017 - 22:00 WIB

189 Countries Discuss the World Economy in Bali 2018

Jakarta - Task Force Head of IMF-World Bank (WB) Annual Meeting 2018 BI Peter Jacobs stated that hundreds of countries will discuss the world economy in Indonesia.

Kayu di Hutan

Rabu, 22 November 2017 - 21:30 WIB

Government Plans to Open the Round of Export of Logs

Jakarta - After being banned for 16 years,the government is considering opening taps for log exports or logs. The reason is to lift the price of that commodity that falls in the local market.

Menteri Kesehatan RI Prof.Dr.dr. Nila Djuwita F.Moeloek SpM (K) (Foto:frontroll)

Rabu, 22 November 2017 - 21:00 WIB

Health Minister Nila Encourages Tobacco Impact Research

Jakarta - Health Minister Nila F Moeloek encourages Indonesian researchers to do more research on the impact of tobacco on health and health costs.