Indonesian property players welcome house price increases for foreign buyers
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The government’s decision to increase house prices for foreign buyers has been met with positively by Indonesian real estate business players, who reason that it will help to protect the domestic property market.
“If the government keeps the price low for foreign buyers, Indonesians will be forced to bear the high price jump. Therefore, I think this is a right decision,” Association of Housing Development in Indonesia (Apersi) chairman Eddy Ganefo said on Tuesday. He explained that the higher purchasing power of foreigners might hurt the domestic industry.
The price increase is stipulated in a regulation issued by the Agrarian and Spatial Planning Ministry.
The minimum house price set for foreigners in Yogyakarta and Bali now stands at Rp 5 billion (US$371,112) per unit, up from Rp 3 billion under a previous regulation.
In West Nusa Tenggara and North Sumatra, the minimum price also jumped to Rp 3 billion from Rp 2 billion.
Indonesian Real Estate Association (REI) chairman Eddy Hussy said he was optimistic that the changes in price would not affect demand from foreigners to purchase houses.
Questions & Answers
Q.What is the new minimum house price for foreign buyers in Yogyakarta and Bali?
What is the new minimum house price for foreign buyers in Yogyakarta and Bali?
The new minimum house price for foreign buyers in Yogyakarta and Bali is Rp 5 billion (US$371,112) per unit. This is an increase from the previous Rp 3 billion.
Q.Who has welcomed the government's decision to increase house prices for foreign buyers?
Who has welcomed the government's decision to increase house prices for foreign buyers?
Indonesian real estate business players have welcomed the government's decision. This includes Association of Housing Development in Indonesia chairman Eddy Ganefo and Indonesian Real Estate Association chairman Eddy Hussy.
Q.Why do Indonesian real estate players support the higher prices for foreign buyers?
Why do Indonesian real estate players support the higher prices for foreign buyers?
They support it because they believe it will protect the domestic property market. Eddy Ganefo explained that higher purchasing power from foreigners could otherwise hurt the local industry.
Q.Where else have minimum house prices for foreign buyers increased besides Yogyakarta and Bali?
Where else have minimum house prices for foreign buyers increased besides Yogyakarta and Bali?
Minimum house prices for foreign buyers have also increased in West Nusa Tenggara and North Sumatra. The price in these areas rose to Rp 3 billion from the previous Rp 2 billion.
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