Property Sales In Indonesia Declining During Early 2014

Jakarta, April 15 (Antara) - The property sales in Indonesia has been declining during early 2014, after a high number of purchase the year before, Director of Indonesia Property Watch (IPW) Ali Traghanda stated here on Tuesday. "The sales declined by 49 percent early in 2014. We had predicted this to happen especially after the property price went up since 2013," Ali explained. He also reminded that there will be a slow growth in housing projects by 20 to 25 percent in the next year. Earlier, Managing Director of Corporate Strategy and Services of the real estate development firm Sinar Mas Land, Ishak chandra, has noted that sales of property will be slow in 2014, but the country's overall economy will improve. According to him, there were various factors that contributed to the declining sales of property namely, the Loan to Value (LTV) policy set by Bank of Indonesia and the general election event held this year in the country. However, he added that the situation did not influence Indonesia`s economy because Indonesia`s growth was predicted to be above five percent this year. Ishak added that other indications that signal Indonesia`s improved economy was the prediction that the GDP would increase from 5.5-5.9 percent in 2013 to 5.8-6.2 percent in 2014. Inflation was also predicted to decrease from 9.8 percent last year to 4.5 percent this year, with the interest rate declining from 7.25 percent in 2013 to 5.5 percent this year.