November 9, 2011
Factors including an increase in wealth and tourism in Malaysia and Indonesia are underpinning residential and retail markets. Steve Killick finds out more.
Developing Asia is leading the global economy. Where many western property agents are depressed at battling against weak growth patterns and a pervading lack of confidence there is a sense of steady progress to be found when quizzing leading property figures in both Indonesia and Malaysia.
Indonesia has been less affected by the worldwide recession than most of its Asian neighbours, primarily because exports play only a small part in the country’s economy.
Increased wealth has led to an upturn in residential activity, espceically among middle and upper income groups, and provided to added stimulus of banks being prepared to lend more. Permata Bank expects its mortgage loan book to surge by 20 per cent during 2011, with nearly US$564 million in housing loans.