Surge in Indonesia's home prices seen continuing despite monetary easing
[JAKARTA] Indonesia's most aggressive monetary tightening since 2005 is set to slow economic growth without denting soaring property demand in the world's fourth-most populous nation.
A young population, elevated inflation and property-price gains that outpace interest rates are spurring real-estate sales from Jakarta to Manado. Home prices in the third quarter probably rose 14.6 per cent from a year earlier, according to a Bank Indonesia survey, while the Indonesian Real Estate Association predicts housing sales will climb more than 50 per cent this year.
"Indonesia has a huge population, that's a potential market for us," said Setyo Maharso, chairman of the Indonesian real estate association, which predicts 2013 property sales will rise to 400,000 units from 260,…
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