Intiland Pre-Sale, Property Developer Owned By Conglomerate Hendro Gondokusumo Grows 165 Percent In First Quarter 2021

South Quarter. (Photo: Doc. Intiland)

JAKARTA - Property developer PT Intiland Development Tbk recorded marketing sales in the first quarter of 2021 of IDR 310 billion. This gain increased by 165 percent compared to the first quarter of 2020, which was IDR 117 billion.

Intiland's Director of Capital Management and Investment Archied Noto Pradono said, entering the first three months of 2021, the company owned by conglomerate Hendro Gondokusumo assessed that the property market condition had started to move positively.

"Several incentives and policy stimulus provided by the government as well as several promotional programs launched by property developers have begun to encourage people to return to making purchases and investing in the property sector", said Archied in a written statement, quoted on Wednesday, June 9.

Archied explained that since the end of 2020, consumer interest in buying property has begun to gradually improve. This change mainly occurred in sales of housing products, especially in the middle market segment which began to roll back.

"We have had a lot of discussions with consumers and property agents. Most of them are optimistic and have confidence that conditions will improve. To anticipate these changes, we have prepared special promo programs and launched several new products to meet consumer needs," said Archied further.

Judging from the location, according to Archied, sales originating from the development of projects in Surabaya recorded a contribution of IDR 167 billion or around 54 percent. Next comes the sale of projects in Jakarta amounting to IDR 143 billion or 46 percent of the total.

From the development segment, the residential area managed to contribute the largest marketing sales, which was IDR 222 billion or 72 percent of the total. This was followed by sales from the industrial estate development segment of IDR 59 billion or 19 percent, and the mixed-use and high rise development segment of IDR 29 billion or 9 percent of the total.

Archied explained that sales from the residential segment increased on average in the first three months of this year. The largest contribution still came from the sale of housing units in the Graha Natura and Graha Family housing estates in Surabaya, Serenia Hills, and South Grove in South Jakarta, as well as Talaga Bestari in Tangerang.

"We are targeting marketing sales this year to reach IDR 2 trillion, with the main focus coming from sales of the residential and high-rise segments", said Archied.

Archied said Intiland hopes that the property market will revive this year in line with the stimulus and policy incentives launched by the government. This year could be a turning point for the property market and consumers to make purchases and invest in property.

"The handling of COVID-19 is the economic driving force that businesses are waiting for. In addition, we appreciate the property stimulus from the government, such as down payment incentives and relaxation of value-added taxes which are quite holistic in encouraging property sales", said Archied.

The Company offers various facilities for consumers to complement the policy incentives from the government. These promo programs include a gradual installment program without interest, to various bonuses for purchasing certain projects such as furniture bonuses, free service fees, or environmental management fees.

This year, the company will focus more on selling inventory or unit stock in several housing and apartment projects. However, the Company also continues to see the niche and market potential for launching new projects by considering risk factors carefully.

"There are always opportunities in the property industry. The key lies in developers who must be keen to seize opportunities in every existing sub-sector. We see the market starting to move and we believe it will gradually improve", said Archied.