Property Investment Grows 8.8 Percent

Property investment
Property investment

Indonesia’s economic recovery has been seen in several sectors, one of them is the property sector. The mobility of society which has returned to normal after the pandemic has contributed to this. Throughout the first semester of 2022, the property investment sector experienced positive growth with a value of Rp 584.6 trillion or grew by 8.8%.

Based on the Commercial Property Development Report (PPKOM) issued by Bank Indonesia, the demand for commercial property in the first quarter of 2022 showed an increase of 1.19% YoY.

The increase in demand for property, especially landed houses, has had a positive impact on developers, as experienced by PT Mitragama Inti Perkasa (MIP) which developed the La Palma Grande residential area.

“In the first semester we managed to record sales of hundreds of housing units,” said Santoso Angwar, Project Director of PT Mitragama Inti Perkasa, in his statement, Monday (15/8/2022).

Furthermore, Santoso Angwar explained, that the increase in property sales was due to government policies that made it easier for every citizen who wanted to own a house. The increase in house sales prompted MIP to immediately make various preparations for the construction of housing units.

“Infrastructure is an important part of accelerating the development process, explained Santoso Angwar.

Santo Anwar further explained that Block G, which will be used as the first La Palma Grande cluster, is currently in the process of backfilling and hardening the land. According to him, the plan for the construction of the house foundation will be carried out in September.

“Our commitment is to finish each house as soon as possible according to the deadline,” said Santoso Angwar.

Meanwhile, Oktorisman, BNI KC Fatmawati’s business marketing leader, said that the collaboration with La Palma Grande is something extraordinary. In less than two months, BNI KC Fatmawati has made three mass contracts.

Oktorisman further revealed that La Palma Grande became the selected project unit. Therefore, BNI provides various conveniences for La Palma Grande consumers through the instant approval program

However, despite experiencing growth, property sector stocks are still not free from pressure. This is reflected in the movement of the property and real estate sector index which fell 6.77% year to date (YTD). The property sector became the sectoral index whose performance fell the most after the technology sector.

Henan Putihrai Sekuritas analyst Jono Syafei said that so far, positive sentiment for the property sector has come from the government’s tax incentives and Loan to Value (LTV) policies from Bank Indonesia (BI) as well as low-interest rates.