Economic Recovery Is Still Continuing, Next Year's Property Business Will Continue To Grow

Property observer Anton Sitorus assesses that the property industry still has the opportunity to grow next year in line with the predicted domestic economic recovery that is still continuing.

"Next year, if we can achieve the economic growth target in the range of 4.5-5 percent, the property industry will definitely have room for growth. Growth will mainly occur in residential and logistics segments. The economic recovery that has started to occur this year, I think will also continue," Anton said in a statement quoted by Antara, Wednesday, December 28.

Until November 2022, Bank Indonesia also noted that housing loans and apartment ownership loans were still in a positive trend with growth of 8 percent (yoy) and quarterly in the third quarter of 2022 growth reached 3.27 percent, which is the highest growth since 2020.

While launching the homecom Indonesia Property Market Report Q3-2022, demand for apartments grew 12.4 percent (qtq), but has not yet been accompanied by supply growth which grew 3 percent (qtq). Meanwhile, the price index actually contracted 0.5 percent (qtq).

Anton explained that the balance between supply, price, and demand is currently a challenge for apartment developers now until next year. Developers who can overcome these challenges can certainly encourage positive responses from the market.

"Developers need to continue to innovate and be creative. Jabodetabek has around 30 million inhabitants, if developers can produce large amounts of apartment supplies amidst high demand at affordable prices, it will definitely be crowded," said Anton.

He added that people's preferences in choosing apartments are mainly related to locations. The excellent accessibility to activity centers such as Jakarta, supported by complete facilities and affordable prices, will be an added value, in addition to the commitment to development and timeliness of handover.