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

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Cambodia purchases 4 million Molnupiravir tablets

    Cambodia has arranged for the purchase of four million US-made Molnupiravir pills – enough to treat 100,000 Covid-19 patients – even though the current rate of daily infections in Cambodia remains low. The medicine will be distributed to state hospitals, pharmacies and private clinics, according to the Samdech

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Cambodia planning new border checkpoint at Thma Da

    Cambodia is looking into the possibility of opening a new Thma Da Border Checkpoint with Thailand to boost trade and tourism. The Ministry of Public Works and Transport said on December 4 that Minister of Public Works and Transport Sun Chanthol led a technical working group

  • No more Africa travel ban but new rules for arrivals

    The Ministry of Health has decided to lift the ban on travellers from or who have travelled through 10 African countries and instead issued a set of standard operating procedures to manage passenger arrivals at Cambodia’s international airports. The 10 African countries are Botswana, Eswatini, Lesotho,