2023 The Economy Has Worsen, This Is What Property Entrepreneurs Are Doing
Jakarta, CNBC Indonesia - The global economic situation which is expected to worsen in 2023 has not dampened the confidence of property industry players in the country to remain optimistic in looking at 2023. Through various breakthroughs and new initiatives, developers believe that their business will grow positively next year.
Marketing Director of PT Agung Podomoro Land Tbk Agung Wirajaya expressed his optimism that the property industry will continue to grow positively next year. According to him, the Indonesian economy has good fundamentals and is predicted to continue to grow positively in 2023. Through various new strategies and initiatives, Agung Podomoro has been able to take advantage of the Covid-19 pandemic situation over the past three years with very positive business growth.
"With various post-Covid-19 changes, developers are required to make various breakthroughs so that our property projects are in line with the latest consumer needs. This strategy has been implemented by Agung Podomoro in the last three years and has been successful," Agung explained in an official statement, Tuesday. (29/11/2022).
For example, during a pandemic, Agung Podomoro launched a residence in Podomoro Tenjo City and sold up to 4,500 units. Even the Podomoro City Deli Medan apartment that was built by APL in Medan was sold out in a short time.
"The need for housing is still very large. It has now reached 12.7 million, and it is certain that the number will continue to increase every year. Even if all the developers join forces, it is not certain that they will be able to meet the very large demand for housing," said Agung.
Based on the records of the Central Statistics Agency (BPS), in the third quarter of 2022 the Indonesian economy grew 5.72% on an annual basis. This figure is higher than growth in the second quarter of 2022 which was 5.44% on an annual basis.
Chief Economist of PT Bank Central Asia Tbk (BCA) David E. Sumual said, the government will of course continue to maintain this positive trend of economic growth. In fact, while the economic situation is still wait and see, several investment instruments will actually experience an increase, for example gold and property.
According to David, many banks have also not raised mortgage rates even though Bank Indonesia's benchmark interest rate has increased several times. For this reason, David believes that property investment will remain attractive considering that the trend of rising property prices will continue. Property is also a safe investment instrument.
David saw that the role of the property sector was proven by its contribution to GDP. In the second quarter of 2022 the contribution of the construction sector to GDP reached 9.14%, and 2.47% for real estate. In addition, growth was also shown by the property sector in the second quarter of 2022 with achievements that exceeded pre-pandemic levels of 2.16% (yoy) for real estate and 1.02% (yoy) for construction.
"The Commercial Property Demand Index in the second quarter of 2022 also rose by 1.58% (yoy). This gives confidence that the property sector will continue to grow, moreover banks will continue to maintain mortgage interest rates at a level that consumers can afford," he explained David in the discussion.
The same thing was expressed by the President Director of PT ERA Indonesia Darmadi Darmawangsa. The optimism of business actors in the property sector is marked by the large number of developers who are continuing to launch new projects even though economic conditions have not fully recovered after the pandemic.
"That's because housing is a primary need, so the demand will always be there. There are still lots of people who need housing and it hasn't been met," he said.
In the last 40 years, continued Darmadi, 90% of Indonesia's upper-middle-class people have had their wealth derived from property ownership. "If you don't invest in property, your wealth will surely be eroded by inflation. Because one of the things that can cover inflation is the increase in property prices," he said.
The magnitude of the increase in property prices cannot be measured with certainty. However, based on Darmadi's experience, the increase is always above inflation. "Not only property, the increase in the price of other commodities is also unpredictable. Take a look at the coal price in April 2021 during the pandemic, the price was only US$ 51, but after the pandemic in October 2022 the price has shot up to US$ 351. So now is the best time to invest. on the property," said Darmadi.
Bukit Podomoro Jakarta Chief Marketing Officer Zaldy Wihardja said, APL's confidence in looking to 2023 is proven by continuing to invest and build properties in the East Jakarta area. This was done as a strategy to meet the needs of consumers who want assets with high value growth as well as luxury residential areas that are coveted and awaited by East Jakarta residents.
In East Jakarta, Zaldy said, the increase in land prices was relatively late compared to other areas of Jakarta. But in the last five years the increase has been the highest. Moreover, the DKI Jakarta government plans to make the East Jakarta area a residential area, no longer an industry.
"We are building Podomoro Hills in Jakarta because the potential for growth is still very high. Currently the price of land is still around 20-25 million per meter, half of the price in Central and South Jakarta. But I am sure that in 3-4 years land prices in East Jakarta will skyrocket ," he said. East Jakarta, added Zaldy, is a Sunrise area stored in Jakarta and ready to become the next new gold area.
Zaldy then gave an example of the increase in house prices in Podomoro Hill in the past year which ranged from 10-15%. This increase was already higher than inflation.
"Property will continue to increase. Even if it is stagnant, it will not take long for it to rise again. Apart from that, property has a measurable risk, because the asset has a form, aka it can be lived in," he concluded.
https://www.cnbcindonesia.com/market/20221129060652-17-391952/2023-ekonomi-memburuk-ini-yang-dilakukan-pengusaha-properti
Marketing Director of PT Agung Podomoro Land Tbk Agung Wirajaya expressed his optimism that the property industry will continue to grow positively next year. According to him, the Indonesian economy has good fundamentals and is predicted to continue to grow positively in 2023. Through various new strategies and initiatives, Agung Podomoro has been able to take advantage of the Covid-19 pandemic situation over the past three years with very positive business growth.
"With various post-Covid-19 changes, developers are required to make various breakthroughs so that our property projects are in line with the latest consumer needs. This strategy has been implemented by Agung Podomoro in the last three years and has been successful," Agung explained in an official statement, Tuesday. (29/11/2022).
For example, during a pandemic, Agung Podomoro launched a residence in Podomoro Tenjo City and sold up to 4,500 units. Even the Podomoro City Deli Medan apartment that was built by APL in Medan was sold out in a short time.
"The need for housing is still very large. It has now reached 12.7 million, and it is certain that the number will continue to increase every year. Even if all the developers join forces, it is not certain that they will be able to meet the very large demand for housing," said Agung.
Based on the records of the Central Statistics Agency (BPS), in the third quarter of 2022 the Indonesian economy grew 5.72% on an annual basis. This figure is higher than growth in the second quarter of 2022 which was 5.44% on an annual basis.
Chief Economist of PT Bank Central Asia Tbk (BCA) David E. Sumual said, the government will of course continue to maintain this positive trend of economic growth. In fact, while the economic situation is still wait and see, several investment instruments will actually experience an increase, for example gold and property.
According to David, many banks have also not raised mortgage rates even though Bank Indonesia's benchmark interest rate has increased several times. For this reason, David believes that property investment will remain attractive considering that the trend of rising property prices will continue. Property is also a safe investment instrument.
David saw that the role of the property sector was proven by its contribution to GDP. In the second quarter of 2022 the contribution of the construction sector to GDP reached 9.14%, and 2.47% for real estate. In addition, growth was also shown by the property sector in the second quarter of 2022 with achievements that exceeded pre-pandemic levels of 2.16% (yoy) for real estate and 1.02% (yoy) for construction.
"The Commercial Property Demand Index in the second quarter of 2022 also rose by 1.58% (yoy). This gives confidence that the property sector will continue to grow, moreover banks will continue to maintain mortgage interest rates at a level that consumers can afford," he explained David in the discussion.
The same thing was expressed by the President Director of PT ERA Indonesia Darmadi Darmawangsa. The optimism of business actors in the property sector is marked by the large number of developers who are continuing to launch new projects even though economic conditions have not fully recovered after the pandemic.
"That's because housing is a primary need, so the demand will always be there. There are still lots of people who need housing and it hasn't been met," he said.
In the last 40 years, continued Darmadi, 90% of Indonesia's upper-middle-class people have had their wealth derived from property ownership. "If you don't invest in property, your wealth will surely be eroded by inflation. Because one of the things that can cover inflation is the increase in property prices," he said.
The magnitude of the increase in property prices cannot be measured with certainty. However, based on Darmadi's experience, the increase is always above inflation. "Not only property, the increase in the price of other commodities is also unpredictable. Take a look at the coal price in April 2021 during the pandemic, the price was only US$ 51, but after the pandemic in October 2022 the price has shot up to US$ 351. So now is the best time to invest. on the property," said Darmadi.
Bukit Podomoro Jakarta Chief Marketing Officer Zaldy Wihardja said, APL's confidence in looking to 2023 is proven by continuing to invest and build properties in the East Jakarta area. This was done as a strategy to meet the needs of consumers who want assets with high value growth as well as luxury residential areas that are coveted and awaited by East Jakarta residents.
In East Jakarta, Zaldy said, the increase in land prices was relatively late compared to other areas of Jakarta. But in the last five years the increase has been the highest. Moreover, the DKI Jakarta government plans to make the East Jakarta area a residential area, no longer an industry.
"We are building Podomoro Hills in Jakarta because the potential for growth is still very high. Currently the price of land is still around 20-25 million per meter, half of the price in Central and South Jakarta. But I am sure that in 3-4 years land prices in East Jakarta will skyrocket ," he said. East Jakarta, added Zaldy, is a Sunrise area stored in Jakarta and ready to become the next new gold area.
Zaldy then gave an example of the increase in house prices in Podomoro Hill in the past year which ranged from 10-15%. This increase was already higher than inflation.
"Property will continue to increase. Even if it is stagnant, it will not take long for it to rise again. Apart from that, property has a measurable risk, because the asset has a form, aka it can be lived in," he concluded.
https://www.cnbcindonesia.com/market/20221129060652-17-391952/2023-ekonomi-memburuk-ini-yang-dilakukan-pengusaha-properti
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