






{"id":32917,"date":"2023-04-03T12:23:45","date_gmt":"2023-04-03T05:23:45","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=32917"},"modified":"2024-09-19T17:25:06","modified_gmt":"2024-09-19T10:25:06","slug":"capital-gains-indonesias-economic-growth-and-real-estate-boom-fuel-development","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/capital-gains-indonesias-economic-growth-and-real-estate-boom-fuel-development\/","title":{"rendered":"Capital gains: Indonesia&#8217;s economic growth and real estate boom fuel development"},"content":{"rendered":"<p><span class=\"NormalTextRun SCXW218527090 BCX0\">Local government&#8217;s efforts <\/span><span class=\"NormalTextRun SCXW218527090 BCX0\">to attract<\/span><span class=\"NormalTextRun SCXW218527090 BCX0\"> foreign investment seem to pay off<\/span><\/p>\n<figure id=\"attachment_32918\" aria-describedby=\"caption-attachment-32918\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-32918\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/04\/shutterstock_1060162097.jpg\" alt=\"\" width=\"1000\" height=\"562\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/04\/shutterstock_1060162097.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/04\/shutterstock_1060162097-400x225.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/04\/shutterstock_1060162097-600x337.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2023\/04\/shutterstock_1060162097-768x432.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-32918\" class=\"wp-caption-text\">The demand for property is likely to increase as more consumers are able to afford to buy or rent homes. CreativaImages\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"none\">The Indonesian economy is growing at a swift pace, with its Gross Domestic Product (GDP) rising to a nine-year high in 2022. The country&#8217;s strong economic growth is expected to have a significant impact on the property market, as investors look to take advantage of the boom.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">According to <\/span><a href=\"https:\/\/www.hurriyetdailynews.com\/indonesian-economic-growth-rises-to-nine-year-high-180670\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Hurriyet Daily New<\/span><\/a><span data-contrast=\"none\">s, the country\u2019s GDP rose by 6.9 percent in 2022, the highest since 2013. This growth was largely driven by an increase in government spending, as well as a surge in exports and investment. The demand for property is also likely to increase as more consumers are able to afford to buy or rent homes.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">This is good news for property developers\u2014namely major winners at the <\/span><a href=\"https:\/\/www.asiapropertyawards.com\/en\/the-8th-propertyguru-indonesia-property-awards-elevate-the-sectors-brightest-industrial-residential-commercial-achievements\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">2022 PropertGuru Indonesia Property Awards<\/span><\/a><span data-contrast=\"none\">: Agung Sedayu Group (Best Developer), Triniti Land (Best Lifestyle Developer), PT Logos SEA Indonesia (Best Sustainable Industrial Developer and Best Industrial Building Developer), and Central Group (Best Emerging Developer)\u2014who are likely to see a surge in demand for their products.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cTax relaxation, infrastructure developments, and the lifting of social restrictions have proven to have a positive impact on the Indonesian property market,\u201d said Vivin Harsanto, the senior director\/head of advisory at JLL Indonesia, as well as the chairperson of the PropertyGuru Indonesia Property Awards independent panel of judges.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">In the Q4 report published by <\/span><span data-contrast=\"none\">Colliers International<\/span><span data-contrast=\"none\"> on Jakarta and Bali&#8217;s properties, there is a growing demand for the residential and commercial sectors. In the current capital, the residential property sector recorded a 0.9 percent increase in average price per square meter (sqm) quarter-on-quarter, while in the leading\u00a0beach destination, the commercial property sector recorded a 2.5 percent QoQ increase in average price per sqm.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The report also highlighted the continued strong demand for co-living and co-working spaces. With more people working from home and the rising cost of office spaces, these types of properties are becoming increasingly popular.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Rumah.com<\/span><span data-contrast=\"none\"> also released its Q1 2023 Indonesia Property Market Report, revealing a positive outlook for the market. The residential property sector, for one, recorded a 3.7 percent increase in the asking price for houses compared to the last quarter of 2022. The report also showed that demand for apartments and landed houses remains strong.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cWe have seen a lot more activities this year compared to last year, however, we are also anticipating some wait-and-see towards the end of the year due to the upcoming election next year,\u201d added Harsanto.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">While the property market is generally booming, there are still some concerns about the relocation of the country&#8217;s capital from Jakarta to a new site in East Kalimantan, in a bid to ease overcrowding and pollution in the capital.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">According to <\/span><a href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/some-cash-land-boom-near-indonesias-new-capital-others-despondent-2023-03-15\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Reuters<\/span><\/a><span data-contrast=\"none\">, investors are worried that this capital relocation project could have a negative impact on the property market, mainly that it could lead to a glut of properties in Jakarta, as people sell off their homes in the city and move to the new capital.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Despite these concerns, President Jokowi remains optimistic about the project&#8217;s potential. In an interview with <\/span><a href=\"https:\/\/asia.nikkei.com\/Politics\/Jokowi-promotes-Indonesia-capital-project-as-Asia-s-fintech-hub\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Asia Nikkei<\/span><\/a><span data-contrast=\"none\">, he shared his vision to transform the new capital into a fintech hub, attracting investment and creating jobs in the tech sector.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Overall, the strong economic growth in Indonesia bodes well for the property market. With the demand for property rising, developers are likely to see a surge in business. However, the success of the country&#8217;s new capital project remains to be seen, and investors will need to carefully monitor the situation to make informed decisions about their investments. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><i><span data-contrast=\"none\">Heard of award-worthy residential, commercial, or industrial projects in Indonesia?<\/span><\/i><\/b><b><i><span data-contrast=\"none\"> Nominate them for the <\/span><\/i><\/b><b><i><span data-contrast=\"none\">9th annual PropertyGuru Indonesia Property Awards on or before 7 July 2023. To know more, visit <\/span><\/i><\/b><a href=\"https:\/\/www.asiapropertyawards.com\/en\/award\/indonesia\/\"><b><i><span data-contrast=\"none\">AsiaPropertyAwards.com\/Award\/Indonesia\/<\/span><\/i><\/b><\/a><b><i><span data-contrast=\"none\">.<\/span><\/i><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: <\/span><\/i><a href=\"mailto:gynen@propertyguru.com\"><i><span data-contrast=\"none\">gynen@propertyguru.com<\/span><\/i><\/a><i><span data-contrast=\"none\">.<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Local government&#8217;s efforts to attract foreign investment seem to pay off<\/p>\n","protected":false},"author":9,"featured_media":32918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[101,92],"tags":[464,154,638],"class_list":["post-32917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-property-awards","category-news","tag-economy","tag-indonesia","tag-real-estate","news_country-indonesia","news_author-gynen-kyra-toriano"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Capital gains: Indonesia&#039;s economic growth and real estate boom fuel development | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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