batampos.co.id – Indonesia remains a hot spot for real estate investment, ranking sixth globally in the Emerging Trends in Real Estate Asia-Pacific 2016 survey. Property is a key sector in the country’s economy given it has a strong multiplier effect on subsectors of the economy; as much as 175 subsectors relate to property. A strong domestic real estate market means steel, cement, stone, glass, household appliances, and others will benefit from a stimulus.
Residential property has cooled down recently amidst some political uncertainty, so it’s crucial the government does its part in providing greater clarity and structure to the sector. Demand for property remains as high as ever given the favourable population demographics—50 percent of Indonesians are under 30 years of age. Added to the positive demographic profile, is the substantial housing shortfall estimated to be in the region of 13.5 million units. The government will play a crucial role in supporting developers who wish to build affordable housing.
Jakarta may seem saturated to some investors as they look further afield for further opportunities. Serpong and South Tangerang is one of the fastest growing satellite cities. The selection of shopping centers, markets, and restaurants make it firmly on the radar for buyers looking for viable alternatives. While Jakarta is seen as the premier location for vertical developments of upper-middle-class to upper-class properties, Serpong is more targeted towards housing developments for the middle class.
The house price trend in Serpong has risen consistently over the past five years. Right now, land prices in business areas can be as high as IDR 27m per square meter. A major contributory factor is the wave of corporations moving their headquarters from Jakarta to Serpong to avoid the heavy city traffic and overcrowding.
Paramount Land—one of the pioneering developers in the country—have played no small part in revolutionising the development of Serpong from an undesirable backwater to one of the most sought after areas in the country.
“We see Serpong becoming an investment hotspot in the next couple of years,” said Mart Polman—managing director of Lamudi Indonesia.” Being just 30 km from the central business district of Jakarta and close to the Soekarno-Hatta International Airport make Serpong an ideal location.