Expert Predicts Property Market Boom in Two Years

Property expert Panangian Simanungkalit predicts Indonesia’s property market will experience a boom within the next two years, specifically in 2028, driven by positive national economic growth and stabilisation of global commodity prices. “I predict the property market will boom in about two years,” Panangian told Antara on Monday (25 May). He believes Indonesia’s first-quarter economic growth of 5.61% is a strong signal of the property sector’s revival. According to Panangian, historical patterns show that commodity price surges are typically followed by increases in the property sector. Despite current geopolitical challenges driving up oil and gold prices, he projects economic stabilisation within one to two months. “Once the rupiah stabilises and gold and commodities peak then decline, the property sector will rise. Property will follow this stabilisation trend,” he explained. Panangian urged the public not to delay investments. “The right time is when people are still hesitant. Once the market shows signs of recovery, property prices will already be high and the momentum will be too late,” he added. The property sector has also received a boost from government fiscal policies. Finance Minister Purbaya Yudhi Sadewa has extended the 100% Government-Borne Value-Added Tax (PPN DTP) facility until 31 December 2027. The policy is expected to target around 40,000 property units annually, maintaining middle-class purchasing power while maximising the property sector’s multiplier effect on national economic growth. With the tax incentive extension and supportive economic cycle predictions, the next two years are deemed crucial for property asset growth in the country. (Ant/Z-10)