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 - 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)

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