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

PT Autopedia Sukses Lestari Tbk (ASLC)

Rabu, 25 Januari 2023 - 09:30 WIB

ASLC Successfully Surpasses 2022 Used Car Sales Target via Caroline.id

PT Autopedia Sukses Lestari Tbk (ASLC), a company engaged in used vehicles auction and trading of used cars, succeeded in selling 2,481 units of used cars through used car dealers under its…

A woman is paying her attention to the Jakarta Composite Index board movement. (Document of INDUSTRY.co.id)

Kamis, 05 Januari 2023 - 22:29 WIB

New Economic Board, GOTO Share Moves Closer to Global Indices

The presence of the New Economic Board on the Indonesia Stock Exchange (IDX) brings many benefits to PT GoTo Gojek Tokopedia Tbk (GOTO). One of them is getting closer to the shares listing of…

PT Alkindo Naratama Tbk (“ALDO”)

Senin, 19 Desember 2022 - 23:51 WIB

ALDO Aims 2023 Sales to Increase More Than Double

PT Alkindo Naratama Tbk (“ALDO”), a listed company engaged in the integrated paper and chemical business are optimistic that the Company's performance in 2023 will improve, in line with…

Lauren Blasco of ACV.

Senin, 19 Desember 2022 - 22:39 WIB

Indonesian Chamber of Commerce and Industry taps AC Ventures’ ESG head to join task force

The Indonesian Chamber of Commerce and Industry (KADIN) recently tapped AC Ventures’ (ACV) Head of ESG Lauren Blasco to join its newly formed ESG task force, an elite group of stakeholders…

The CIP Utilities & Automated Reporting Analytics allows plant managers

Senin, 19 Desember 2022 - 21:50 WIB

Emerson’s New Analytics Software Automates Utilities Monitoring and Reporting for Clean-in-Place Applications

Emerson: Today Emerson announced the release of its new Clean In Place (CIP) Utilities and Automated Reporting Analytics package delivered via PACEdge™ and Movicon™ platforms on an industrial…