Apart from Jabodetabek, IKN Nusantara has the potential for property investment

JAKARTA, KOMPAS.com – Besides Jabodetabek, North Paser Sharpening (PPU) as a candidate for the National Capital City (IKN) of the Archipelago is considered a potential city for property investment.

In a survey conducted by Knight Frank Indonesia entitled Indonesia Property Survey16 percent of respondents chose PPU.

Country Head Knight Frank Indonesia Willson Kalip said the potential for PPU will be seen in the next few years.

“The government’s plan to move IKN from Jakarta to PPU makes the city considered quite prospective for property investment in the next few years apart from Jakarta and Bodetabek,” he explained in a press release, Wednesday (15/5/2022).

New perspectives are also being formed where the potential for property investment widens from business district conventional strategic to the region economic movements centered on tourism such as Bali, Lombok, and Labuan Bajo.

Bali gets 24 percent of respondents. While Lombok and Labuan Bajo each accounted for 11 percent.

Read also: Ready to Support IKN Nusantara, Balang Island Bridge Completed

This survey summarizes the current view of property market in Indonesia, especially in early 2022.

In the survey results, 66 percent of respondents said that the rising tide of inflation in the global and national spheres will greatly impact the recovery of the property sector.

Then, it was found that 61 percent of respondents thought that the implementation of an increase in the Value Added Tax (VAT) rate also had a negative impact on the recovery of the property sector in general.

While the results are the lowest or 59 percent of respondents think, the global crisis due to the Ukraine-Russia war is also one of the factors that can trigger it.

However, optimism is still reflected in the presence of Government-borne Value Added Tax (PPN DTP) incentives that can help boost the performance of the residential sub-sector.

Overall, 90 percent of respondents expressed optimism that the property sector will recover this year.

This is followed by 57 percent of respondents indicating that the property sector will fully recover in the fourth quarter of 2022.

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