Global tension caused by several factors makes the economic sector volatile. However, the property market is considered to remain strong to face these threats.
Property is considered to be one of the safest investment instruments amid various macro and global economic challenges in 2023.
This was conveyed by the Head of Account Management Pinhome Panca Satria. He views the current high growth in property purchase rates as proof of the high interest and demand of the public.
“Property is predicted to be the safest investment instrument, the existence of economic issues in 2023 will not have an impact on the property industry as a real sector,” said Panca, Wednesday (14/12/2022).
Furthermore, Panca explained, related to inflation fluctuations which tend to be stable, low risk in the long term, and the prices that are stable and increasing from year to year.
Based on data from the Pinhome property e-commerce platform, growth in property unit purchases was recorded on average, from the first quarter of 2021 to the end of the 2022 quarter, it increased by 30-40 percent.
In the same vein, Colliers Indonesia Head of Capital Markets & Investment Services Steve Atherton sees Indonesia’s macroeconomic conditions as still stable, despite facing challenges from rising interest rates, inflation in construction costs, and fears of a recession.
“Indonesia has lower inflation, lower interest rate increases, and less currency devaluation compared to markets such as the United States and Europe,” said Steve some time ago.
Colliers Indonesia sees that many developers and investors are refocusing their development efforts on housing or expanding into new assets, such as logistics, data centers, or other horizontal projects.
Furthermore, the Executive Director of the Indonesian Property Study Center (PSPI) Panangian Simanungkalit said that it is still the best asset amid the current economic conditions.
“This is the time to invest in property because prices are stable. With a GDP of 5 percent this year, the prices will start to increase next year,” he said.