Optimistic Industry Players Of The Indonesian Property Sector Will Grow Positively In 2023

Illustration. (Photo: Doc. Antara)

JAKARTA - Marketing Director of PT Agung Podomoro Land Tbk Agung Wirajaya remains optimistic that the property business in the country next year will continue to grow positively amid the global economic situation which is expected to worsen.

Agung said, through various new strategies and initiatives, the company was able to take advantage of the COVID-19 pandemic situation over the past three years with very positive business growth.

"With various post-COVID-19 changes, as developers we are required to make various breakthroughs so that our property projects are in accordance with the current needs of consumers. This strategy has been carried out by Agung Podomoro in the last three years and has succeeded," Agung said in a written statement, quoted from Antara, Tuesday, November 29.

For example, during the pandemic, the issuer coded APLN launched a residence in Podomoro Tenjo City and sold up to 4,500 units. Even the Podomoro City Deli Medan apartment that APL built in Medan sold in a short time.

"When people retreat, we always keep going. When people hold back sales and expansion, we keep going. Because the need for housing is still very large, the gap. Now it has reached 12.7 million, and surely every year the number will continue to grow. Even if all developers join, it is not certain that they can meet the huge housing needs," said Agung.

Based on records from the Central Statistics Agency (BPS), in the third quarter of 2022, the Indonesian economy grew 5.72 percent on an annual basis. This figure is higher than the growth in the second quarter of 2022 which was 5.44 percent on an annual basis.

Head of Economists of PT Bank Central Asia Tbk (BCA) David E Sumual said that the positive trend of economic growth will certainly be maintained by the government. In fact, when the economic situation is still "wait and see", some investment instruments will actually increase, for example gold and property.

According to David, many banks have also not raised the interest rate on Home Ownership Loans (KPR) even though Bank Indonesia's benchmark interest rates have increased several times. Therefore, David believes that property investment will continue to be attractive considering the trend in price increases in property prices will continue to occur. Property is also one of the safe investment instruments.

David sees that the role of the property sector is proven by contributing to Gross Domestic Product (GDP). In the second quarter of 2022, the contribution of the construction sector to GDP reached 9.14 percent, and 2.47 percent for real estate. In addition, growth was also shown by the property sector in the second quarter of 2022 with achievements that exceeded the level before the pandemic of 2.16 percent (yoy) for real estate, and 1.02 percent (yoy) for construction.

"The Commercial Demand Property Index in the second quarter of 2022 also increased by 1.58 percent (yoy). This gives confidence that the property sector will continue to grow, especially since banks will continue to maintain the mortgage interest rate at an affordable level for consumers," said David.