JLL: VAT DTP Incentive Positively Impacts Condominium Market

Jakarta (ANTARA) - Property consultant Jones Lang LaSalle (JLL) has revealed that the government’s Value Added Tax Ditanggung Pemerintah (VAT DTP) incentive policy for the housing sector is having a positive impact on the condominium market.

JLL’s Head of Research, James Taylor, stated that demand for condominiums in the first quarter of this year was primarily driven by completed and ready-to-occupy units.

“These projects are also benefiting from the VAT DTP incentive programme, which is largely attracting end-user buyers rather than investors,” James said during a press conference in Jakarta on Tuesday.

Senior Director of Strategic Consulting at JLL, Milda Abidin, echoed similar sentiments, noting that the incentive policy is aiding the absorption of properties in the housing sector.

According to her, the incentive has resulted in higher-than-usual take-up rates for housing. This is what developers had hoped for to clear their completed products.

“So, in my view, it is indeed a positive development. However, the government also views this as a product for end-users, which is why the incentive is only provided for completed products,” said Milda Abidin.

JLL hopes that the extension of the VAT DTP incentive, offering tax relief for property purchases until 2027, will boost residential property sales activity.

According to Purbaya, the facility will benefit around 40,000 property units per year.

He decided to extend the incentive to maintain the middle class’s purchasing power and support the property sector, which has a significant multiplier effect.

Meanwhile, Coordinating Minister for the Economy Airlangga Hartarto stated that the VAT DTP for property applies fully to purchases of new ready-to-occupy houses or properties with a maximum selling price of Rp2 billion.

The VAT DTP facility applies to Indonesian citizens (WNI) and foreign citizens (WNA) who meet Indonesia’s property ownership requirements.

The incentive can only be utilised for one residential unit and does not apply to purchases of more than one unit, down payments made before the policy takes effect, or units resold within less than one year.