Is it right to raise minimum prices for foreign buyers in Indonesia?
Is it right to raise minimum prices for foreign buyers in Indonesia?
Real estate experts weigh in
Several real estate personages have welcomed the revised schedule of minimum property purchases for foreigners in Indonesia, The Jakarta Post reported.
“If the government keeps the price low for foreign buyers, Indonesians will be forced to bear the high price jump,” Eddy Ganefo, Association of Housing Development in Indonesia (Apersi) chairman, said on Tuesday. “Therefore, I think this is a right decision.”
Eddy Hussy, chairman of the Indonesian Real Estate Association (REI), was also optimistic about the measures, saying that they would not deter foreign interest in Indonesian real estate, The Post reported.
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The Agrarian and Spatial Planning Ministry announced the new prices earlier this month. In Bali, a renowned holiday destination for foreigners, foreigners are now only allowed to buy units with a minimimum price of IDR5 billion (US$371,112), up from IDR3 billion (IDR223,000).
The minimum threshold for purchases by foreigners in West Nusa Tenggara and North Sumatra now stands at IDR3 billion, up from IDR2 billion (USD148,000).
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Source: Property Report