The chairman of the Organization of Indonesian Real Estate Brokers, Teguh Satria, has reminded the provincial government of Bali to exercise caution in establishing zoning rules, keeping in mind the coming "property boom." Satria said mistakes made in establishing zoning rules could thwart development and result in chaos. "Because of this, the provincial government of Bali must be careful in establishing zoning lines and must not be late in making (zoning) plans," warned Teguh when speaking to Beritabali.com.
The real estate entrepreneur predicts that any boom in Bali real estate sales will begin this year and last for at least three to four years. Nationwide, a 20% growth in property sales is anticipated for 2010.
Reflecting this situation, Satria points to the aggressive marketing programs being undertaken by Indonesian banks for property loans.
Despite efforts by banks to lend money to homeowners, Indonesian interest rates are still higher than the rates available in neighboring countries in Asia. Malaysia and Singapore extend interest rates on home loans of 5.3% per year, with Vietnam lending money at a high, 8.6%
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