The Central Statistics Agency (BPS) stated that real estate was a business sector that grew during the first quarter of 2021, but warehousing, or often referred to as the logistics property sub-sector, actually contracted. Head of BPS Suhariyanto on Wednesday (5/5/2021) revealed that real estate was among the sectors that during the first 3 months of this year grew positively along with information and communication, trade, water supply, health services, agriculture, and gas electricity procurement.
The highest growth was contributed by the information and communication sector which achieved growth of 8.72 percent on an annual basis (year-on-year/yoy). Meanwhile, real estate grew 0.94 percent during the first 3 months of the year yoy.
Overall, Indonesia’s economic growth in the first quarter of 2021 contracted both annually and quarterly by -0.74 percent and -0.96 percent, respectively. Regarding the property or real estate business, the government has indeed issued a stimulus in the form of reducing Value Added Tax (VAT).
Bank Indonesia has also suppressed the benchmark interest rate and issued policies that encourage banks to also reduce interest rates on housing loans (KPR).
According to Bisnis.com’s records, during the Covid-19 pandemic, developers prioritized the development of landed housing projects that still had quite a large number of users, especially end users, although they also remained the target of investment in the hope that prices would rise after the pandemic was resolved.