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Indonesia 2016 property sales to grow 10-12 pct y-o-y: industry group

[JAKARTA] Indonesia's property sales growth is expected to accelerate this year to 10-12 per cent from 7-8 per cent last year, the chairman of property industry group Realestat Indonesia (REI) said on Monday.

Improvement in economic growth, implementation of government stimulus packages, as well as infrastructure development will help propel sales this year, Eddy Hussy told reporters in Jakarta.

The economy is forecast to grow around 5.2 per cent in 2016. Latest data showed it grew 4.7 per cent in the third quarter of 2015, its slowest since 2009.

The government has been introducing stimulus packages to boost the economy, including relaxing rules on house ownership permits for foreigners.

Mr Hussy also said he hoped the central bank will further lower policy interest rates to ease borrowing costs for property buyers. Bank Indonesia last week cut rates for the first time in 11 months to support growth.