DIGIVESTASI - Government's Free Housing Program Sparks Decline in Demand for Commercial Homes, The government is actively implementing a free housing program for low-income communities. However, this policy has reportedly led to a decline in public interest in purchasing homes commercially, as many believe they might have a chance to receive a free house instead.

The Chairman of the Indonesian Real Estate Association (REI), Joko Suranto, revealed a significant drop in the number of potential homebuyers making bookings. He estimated the decline at around 30%.  

"Many have canceled. Out of 10 interested buyers, 1 to 3 have canceled, meaning a 30% decrease," Joko said in South Jakarta on Wednesday (November 20, 2024).  

Joko explained that confusion surrounding the program is not only affecting REI members but also other property industry players. Many members of the public are questioning the eligibility criteria for the free housing program.  

"All property industry players are perplexed because consumers are asking about this free housing. This has sparked debates and impacted market sentiment," he added.  

Free Housing Program Needs Clearer Communication
Junaidi Abdillah, Coordinator of GASPERR and Chairman of the Indonesian Housing Developers Association (APERSI), stated that the free housing program must be targeted at truly underprivileged communities to prevent misunderstandings. He also emphasized the need for more detailed socialization regarding the eligibility criteria.  

"Free houses should be provided to those earning less than IDR 1 million. This clarification is essential to ensure the program reaches the right people," Junaidi said during the GASPERR Declaration event in Central Jakarta on Friday (November 15, 2024).  

He added that inconsistent information has disrupted the property market, with many potential buyers delaying or canceling their purchases in hopes of receiving free housing.  

"If the information about this free housing program isn’t clarified, the impact will be significant. People are delaying or even canceling home purchases, which could cripple the property industry," he stressed.  

Developers Report Declining Sales
Ari Tri Priyono, Chairman of HIMPERRA, acknowledged that developers under GASPERR support the government’s initiative to build three million homes. However, he noted that the free housing program has introduced new challenges, particularly in home sales.  

"Many of my members have reported a decline in house bookings. Upon investigation, it turns out people are assuming they are entitled to a free house," Ari explained.  

He emphasized the importance of transparency and clarity regarding program recipients to prevent disruptions in the existing property market ecosystem. "The program must be clarified to avoid destabilizing the current industry," he concluded.  

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