TEMPO Interactive, Jakarta:Investments in the property sector next year may be rising as a result of stable economic condition and low interest rates. “Compared to 2009, investments may be up by 10 percent,” Cushman Wakefield analyst, Andi Susanto Loe, said Jakarta yesterday.
The property sector is seen to be offering competitive benefits with rather stable profits. “There are no distressed assets,” Andi added. The highest profit of nine to 12 percent comes from the retail sector. Profits from the residential sector range from seven to nine percent while the office sector gives six to eight percent profit.
The increase is also taking place in the Asia Pacific, which is estimated to be growing more rapidly compared to Europe. The Indonesian property market will be dominated by local investors, especially those with access to funding and banking facilities. Indonesian investors have also gone international, such as to the US and China, because they believe the profits are higher compared to investing locally.