The government released an official statement regarding the relocation of the National Capital starting in 2024. This caused the property business to heat up even more. It is estimated that the property business will develop rapidly in the area of the State Capital, located in East Kalimantan.
After the president announced the inauguration, the land price has increased significantly up to 5-10 times.
Deputy General Chairperson of the Indonesian Real Estate Association (REI), Hari Ganie, believes that this (the increase of land price) needs to be highlighted. This is because there is still no physical construction in the new capital, but the price of land has gone up drastically.
He argues, the increase in land prices could be caused by the role of speculators. They buy land at a cheap price, wait, then when the announcement of moving the capital comes out, they raise the land price significantly as demand is high as well.
Even though land prices have risen, those lands are not lands that the government will use as a national capital development project.
The property business in the area has good and promising prospects. When the nation’s capital moved there, the area would become the center of government. Many people from various backgrounds will also move there. Starting from government officials, the military, and the general public will flock to move there. Businessmen and foreign nationals are also predicted to move to the East Kalimantan area. This can be a great business opportunity for developers.
The state capital area, which is located in North Penajam Passer, is predicted to become a metropolitan area like Jabodetabek. Surrounding areas such as Balikpapan and Samarinda will also be affected both from an economic perspective.
Meanwhile, one of the major property developers, PT Ciputra Development Tbk (CTRA) has started to develop its business in Kalimantan. According to Kontan’s notes, CTRA has two projects in Samarinda, East Kalimantan, namely CitraLand City Samarinda and CitraGrand Senyiur City. CTRA has a land bank of 870 hectares (Ha) in Kalimantan.
However, the Director of Ciputra Development Harun Hajadi, explained that although his party has started to open a property business in Kalimantan, they are still waiting and see regarding expanding their business in the new national capital area. They will wait until there is a sufficient population base, then they will start buying land there.