High Interest Rate Blocks Property Investment

Pembangunan Apartemen
Sumber :
  • VIVAnews/Nurcholis Anhari Lubis

VIVAnews – Real estate consultant and broker Cushman and Wakefield believes that the growth of property investment in Indonesia is hampered by the high interest rate. This brings difficulties for investors to secure loans for their capital.

According to Cushman and Wakefield Executive Director, Handa Sulaiman, Indonesia’s interest rate is higher compared to that of other countries. Last year the interest rate for property was 24 percent, and now between 11 and 12 percent.

“But that is still high. Now the demand of bank credit loan is still little,” said Handa on June 10, 2011.

Handa went on to say that property industry needs low interest rate as a stimulant factor. When US Dollar can still be used by foreign investors in Indonesia, they prefer having loans in Dollar because the interest rate is lower.

“Now the requirement is only Rupiah, and the interest rate for Rupiah is in fact still high,” he said.

In the mean time, property investment climate in Asia Pacific is enlivened by the easy access of credit for investment. Another factor is solid economic recovery and a large quantity of good prospective property assets.

The impediments are low infrastructure and the regulation. Foreign sectors felt becoming the main victim as it is difficult to obtain property in Indonesia. This made the property growth insignificant. “Due to these issues, foreign sectors prefer constructing the office buildings in Singapore,” he said.

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Translated by Indah Lestari

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VIVA.co.id
10 Mei 2024