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Indonesia Makes It Cheaper to Own Condos in Boost to Developers

  • Government raises tax limit on luxury houses to spur growth
  • Property stocks rally as sales seen gaining on levy changes
Real Estate hoardings in Jakarta.

Real Estate hoardings in Jakarta.

Photographer: Bay Ismoyo/AFP via Getty Images

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Indonesia just made it cheaper for buyers to own an expensive house by raising the luxury tax threshold limit.

The luxury levy of 20% on bungalows or high-rise condos will now apply only to properties valued at 30 billion rupiah ($2.1 million) or more, according to a Finance Ministry notification. The levy previously applied to town houses with land title valued at 20 billion rupiah or more, as well as apartments, town houses and condos without land title and priced at 10 billion rupiah and above, the government said in a statement.