According to the analyst predictions, the Indonesian property shares are heading for a boom year. The predicted surge is the highest among all the industries in Indonesia. Not only that, it is also expected to be the highest when compared to other real estate markets in Southeast Asia.

Reportedly, low interest rates and rebounding commodity prices are helping the Indonesian property market, which is still passing through a recovery phase.

Sales of residential properties in Indonesia have increased by 14 percent during the third quarter of 2019, according to a survey carried out by Bank Indonesia. However, the report also revealed that sales were down by 16 percent in the previous quarter.

Bharat Joshi, an investment director for Aberdeen Standard Investments Indonesia told the media, “Given the low interest rates, every banker in town is pushing mortgages. Developers have also started moving away from high-ticket properties, favouring mass-market units that are more affordable, and that bodes well for the industry.”

Aberdeen Standard, which is headquartered in Jakarta, increased investments in property shares in November. It oversees around $2 billion in Indonesian equities.

According to the local media, Indonesia will look to attract foreign investments in the country by reforming laws which have proved to be detrimental for the country’s growth.

Developers in the country hope the Indonesian government’s recent push to attract investment through regulatory reform will help revive the Indonesian property market.

The post Indonesian property shares to surge by 32% next year appeared first on International Finance.