Jakarta – The planned tax amnesty, aimed to lure more than Rp 100 trillion (US$7.5 billion) in funds back to the country, is expected to help condominium sales this year as wealthy Indonesians look for options to invest repatriated funds.

According to a survey by property consultant Cushman & Wakefield, sales rate of condominiums in the second quarter of the year stood at 98.2 percent, relatively flat compared to the previous quarter and year. However, the occupancy rate was only 62.5 percent, a 2.1 percentage point decrease from the previous quarter.

"The tax amnesty, given the amount of repatriated funds that could be spent in the country, should excite demand in the property industry. It's just a matter of time," said Cushman & Wakefield director of research and advisory services Arief Rahardjo in Jakarta on Thursday.

He argued that apartments and condominiums were good investment objects that could absorb the repatriated funds. Roughly, he further explained, 60 percent of condominium buyers were investors.

The total supply of condominiums in Greater Jakarta stood at 181,005 units in the reviewed quarter, an increase of 4.8 percent quarter-on-quarter and 21.3 percent year-on-year. In the same period, 16 new projects were launched in the market.

The property consultant company also revealed that 65 percent of condominium transactions in the second quarter were for lower-to-medium-priced properties. (vps/ags)

Source: http://www.thejakartapost.com/news/2016/06/24/tax-amnesty-expected-to-buoy-condominium-sales.html