TEMPO.CO, Yogyakarta - The Yogyakarta branch of Indonesian housing developers association Real Estate Indonesia (REI), recorded that house sales in Q1 of 2016 has decreased by 20 percent due to the economic slowdown.
Ilham Muhammad Nur, Deputy Chief of Yogyakarta REI said that sales of medium-class houses, sold at Rp 500 million or more, are dropping. Ilham said that one salesman could only sell at least one house per month. Ilham added that the decrease is apparent in Yogyakarta, Sleman regency, and Bantul Regency.
"[Customers] often wait and see," Ilham said on Monday, April 18, 2016.
Ilham added that home ownership credit (KPR) interest rate shows no signs of decreasing. Ilham said that KPR interest rate in Q1 of 2016 was still on the level of 13.5 to 14.5 percent. Whereas, according to Ilham, lower interest rates are important to attract more customers and expand the property market.
Ilham hoped that banking institutions would help to lower the interest rates because customers are very concerned with the amount of installments they have to pay. "A Rp 100,000 to Rp 500,000 difference is enough to make a customer think twice," Ilham said.
Nevertheless, the REI is confident that the property sector performance will improve in mid-2016. In addition, the REI hoped that the government could simplify the process for property business license application and spatial planning. Currently, it would take 18 months to apply for a property business license.
SHINTA MAHARANI
