REI Bali Push the Decline of Commercial Property Interest Rates

By : Ahmad Fadli And Aldi Firhand. A | Monday, February 19 2018 - 21:14 IWST

Residence Illustration
Residence Illustration

INDUSTRY.co.id - Denpasar- Real Estate Indonesia (REI) Bali Province is driving interest rate reductions for commercial property segmentation in order to drive people's purchasing power that is currently claimed to decline.

"The decline in purchasing power occurred since 2011 and even reached 60 percent last year," said Chairman of DPD REI Bali Pande Agus Permana Widura in Denpasar, Monday (19/2/2018)

Agus said the decline in public purchasing power for commercial property one of them driven interest rates are still high ranging from 12-13 percent.

In addition, the development of the global economy also triggered a business slowdown that kept the public from building commercial properties as an investment vehicle.

So, he continued, most of the property enthusiasts today are among the first time to own a home and not targeting investment.

Consumers, said Agus, are also targeting more affordable property segmentation or subsidies with FLPP housing financing facility schemes than targeting commercial properties.

Even so, he said, FLPP housing subsidy scheme has not been applied in all districts in Bali or only four areas due to high land prices.

REI, he continued, will coordinate with banks to discuss the possibility of interest rate relaxation so as not to be high.

Agus expects the interest rate for segmentation of commercial property ideally reaches five percent or less than eight percent to attract public purchasing power.

Commercial property is a type of property that targets investment such as store house, apartment, retail to hotel. (Ant)

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…