Property Expert Predicts Boom in Two Years

Typically, following a commodity boom, a property boom follows. Property expert Panangian Simanungkalit predicts a property boom will occur in approximately two years’ time. ‘My prediction is that the property boom will occur in about two years,’ Panangian said in Jakarta on Monday. He said that following the government’s announcement of 5.61% economic growth in the first quarter, this is the momentum for the property sector’s revival in Indonesia. ‘Typically, after a commodity boom, a property boom follows,’ he said. However, he added, geopolitical issues have caused oil prices to surge and gold prices to rise beyond many people’s expectations. With commodities having risen and oil prices forecasted despite ongoing US-Iran negotiations, the economy is expected to stabilise within one to two months. ‘Therefore, property typically follows. Once currency stabilises, gold peaks and begins to stabilise and decline, and commodities reach their peak and stabilise, then it will be property’s turn,’ he said. Panangian urged the public to seize the opportunity to invest in property before the boom begins. ‘Many people say, “Wait until the market shows signs of recovery before investing.” But by then, property prices will have already risen. The right time to invest is when people are still hesitant. Once confidence is high, it’s already too late. Currently, people are still uncertain,’ he said. In related news, Finance Minister Purbaya Yudhi Sadewa has extended the government-subsidised value-added tax (VAT) incentive for property purchases up to 100% until 31 December 2027. According to Purbaya, the measure will benefit approximately 40,000 property units annually. The extension aims to safeguard middle-class purchasing power and support the property sector, which has a significant multiplier effect on the economy.