Son Of Conglomerate Mochtar Riady Says Property Will Be The Best Investment In The Next 10-20 Years

Illustration. (Photo: Doc. Lippo Karawaci)

JAKARTA - Property developer of PT Lippo Karawaci Tbk assesses that property will become the best investment in the next 10-20 years. This is supported by the millennial market which will get bigger.

"Looking at the very large millennial market share of up to 60 percent, we understand very well that in the next 10-20 years, property will be the best investment," said Chief Executive Officer (CEO) of PT Lippo Karawaci Tbk John Riady in a written statement, Wednesday. 24 November.

John explained that millennials, who are the real end users, are very interested in buying houses priced below IDR 2 billion. For millennials, property is like the fashion world, which is now not always about expensive brands, but also affordability and the best functionality.

"For this reason, we built a house with a modern tropical design that gives a warm impression in accordance with the characteristics of millennials who are very concerned with energy efficiency," said John.

John revealed that the house is a real need. Currently, consumers already have purchase power, so there is a higher market demand than the available units.

With Indonesia's per capita income of around USD 3.900 and banking interest rates tend to fall, people's affordability increases.

"We as developers must be innovative to be able to meet the huge market demand," he said.

He said that from 80 million households in Indonesia in the next 10 years, an increase of 20 percent would mean that a market of 16 million households would be created.

"Say, as much as 50 percent is the subsidized housing market, the remaining 50 percent is the middle-class housing segment of Rp1 billion and above. Lippo Karawaci has only been able to provide around 3,000 housing units per year," said John.

Lippo Karawaci has proven the success of increasing home sales by launching 8 times the Cendana Series throughout 2020-2021 which is always sold out in an average of 3 hours.

In early December 2021, Lippo Karawaci is preparing to sell landed houses for the upper-middle segment starting at Rp800 million for 'Cendana Cove'.

Lippo Karawaci has increased its pre-sales for the first nine months of 2021 to IDR3.9 trillion and has achieved 93 percent of its 2021 target of IDR4.2 trillion. With the launch of Cendana Cove in the fourth quarter of 2021, Lippo Karawaci is predicted to succeed and even exceed the pre-sales target in 2021.