(2007-03-27) Indonesia property management Indonesia's Property Transactions Fall in January
Real estate market prognosis predicts Indonesia apartments and houses sales to decrease compared to last year.
Property transactions fell to Rp5.3 trillion (US$570 million) in January 2006 or Rp500 billion less than last year.
The declining trend is feared to continue until the third quarter of this year, executive director of Property Study Center Panangian Simanungkalit said recenly.
Simanungkalit said an increase in the credit interest rate to 18.5 per cent has discouraged buyers and is a drag on the real estate sector and the economy in general.
He predicted that property sales will reach Rp62.4 trillion, 20 per cent less than last year.
An executive of the realtors association (REI) Dharmasetiawan Bachir said a decline in purchasing power has also impacted negatively on the property market.
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