The Housing Business Will Increase 20 Percent To IDR 110 Trillion This Year, Is It a New Opportunity?


The property business is expected to continue to rise in 2022. It is estimated, the increase could reach 20 percent. Can the property business be a promising business opportunity this year?

This was conveyed by a property business observer, Panangian Simanungkalit. He predicts that by 2022 the overall housing business will be able to increase by 20 percent to reach Rp110 trillion.

Previously, the sales value of residential properties in 2021 was recorded at Rp. 88 trillion.

The most dominant market is the landed housing sub-sector. It is known that the landed housing sub-sector accounts for 85 percent of the total property business in Indonesia.

Furthermore, the CEO of PT Lippo Karawaci Tbk. (LPKR), John Riady conveyed the optimism for increasing property sales this year. He firmly believes that the property sector in 2022 will be even brighter.

“The challenge in Indonesia is the high demand for housing. The government is trying to provide solutions, including the One Million Houses Program, which is an acceleration and collaboration movement between the government and housing development actors in providing decent housing for the people of Indonesia,” said John in Jakarta.

John believes that a company with a sustainable business is a company that can have a positive impact on society. How the company’s business can be a solution for consumer needs.

“Therefore, PT. Lippo Karawaci Tbk (LPKR) as the market leader in the property business takes the initiative to apply the principles of Environment Social Governance or ESG in its business operations, which is to unite profit and purpose so that business and society together will become more advanced.”

He added that LPKR will provide services that can transform people’s lives for the better. Through its core business in property and health services, LPKR consistently serves the community, among others, by providing environmentally friendly housing, simple yet modern homes at affordable prices.

“Uniting profit and purpose as a step in implementing ESG are one of our goals. It has an impact on improving the quality of people’s lives while running a company that is sustainable in good governance,” said John.

On the other hand, Property Observer Aleviery Akbar said because of the importance of the property sector for the national economic recovery, it is not surprising if the government provides several stimuli, such as a 10% VAT policy borne by the government.

This policy has had an impact on market movements for the upper-middle-income segment and there has been significant growth in sales for houses costing Rp. 500 million and above.

Aleviery said the stimulus provided by the government would boost property sales growth. In addition to the 10% VAT policy, the 0 percent down payment (DP) policy also encourages property sales.

He hopes that the government can continue to provide policy relaxation so that the property sector can grow even more and accelerate the recovery of the national economy.