Property analyst Sarina is looking at the process of buying property in Indonesia. Her conclusion is that transaction costs in property may not be as high as perceived (26% roundtrip costs).
This is due to the difference in market price and the taxable price used in deriving the tax, which is set by the Tax Authority. A simple calculation done by Sarina suggests that roundtrip transaction costs in Jakarta’s popular suburb area of Serpong could be 10% lower than the general perception.
Nonetheless, Indonesian buyers still face large transaction costs relative to peers, which explain the relatively illiquid property market in Indonesia.
Another interesting highlight from the report is that approval from banks on mortgage applications are easier to obtain nowadays. Some of CLSA Jakarta staffs managed to get the approval in a week time.
Maintain OWT the property sector. Top pick is Summarecon (SMRA IJ).
Key points from the report:
Buying your dream house. Rising household income, swift urbanization, and young population have made Indonesia a compelling story for property.
Mortgage market. Banks typically can cover up to 80% of the value of the property. 70% of buyers use mortgage financing and the remaining is through cash payment or developers financing. We have also seen higher approval rates on mortgage applications recently.
Low mortgage rate and longer tenor to fuel demand. We believe banks are aggressively ramping up mortgage lending. Mortgage credit of the six lenders (75% of industry) grew 23% YoY. Latest promotional gimmicks offer longer tenor (StanChart 25 years), and mortgage rate is mostly below 10% across the board from mid-teens in 1H09.
Maintain OWT on the sector. The sector is trading at 59% discount to NAV. We think this still represents a good entry point for investors.
Top pick: Summarecon (SMRA IJ), now trading at 40% discount to its NAV.
Tidak ada komentar:
Posting Komentar