Investors Shun Indonesia Developer Stocks Amid Home Price Surge
By-
Home prices in major cities have accelerated since end of 2012
-
Gauge of real estate stocks is worst performer this year
Analysts love them, investors loathe them. Three out of the seven Indonesian stocks which have unanimous buy recommendations from analysts are residential developers and all of them have fallen by at least 18 percent this year.
Predictions that lower interest rates in Indonesia and last month’s decision by Standard & Poor’s to raise its sovereign rating to investment grade would benefit the country’s property developers, along with banks, have been undercut as soaring prices deterred home buyers.
The Jakarta Construction, Property and Real Estate Index has dropped 6.1 percent this year, the worst performance among the nine industry gauges in the equity benchmark. That contrasts with a 15 percent gain for financial stocks, the best…
Investors Shun Indonesia Developer Stocks Amid Home Price Surge
