Amid The COVID-19 Pandemic, Home Sales In Banten Soared 116.3 Percent

Illustration. (Photo: Indonesia Property Watch)

JAKARTA - Many people predicted that the housing market would continue to decline until the end of the year, but this did not happen. Although the COVID-19 pandemic continues to overshadow the housing market conditions to date, the housing market in the Banten region has experienced a significant jump.

CEO of Indonesia Property Watch Ali Tranghanda said the housing market in Banten in the previous quarter had dropped by half. However, currently it is back on the rise with a two-fold increase.

"The results of the latest research on the Banten housing market in the second quarter of 2020 conducted by Indonesia Property Watch show that the value of home sales transactions in the Banten area has increased by 116.3 percent from Rp391.62 billion to Rp847.15 billion, or an increase of 2.16 times. more than the previous quarter, "he said, in an official statement received by VOI, in Jakarta, Monday, July 13.

Furthermore, Ali explained, the survey was carried out on 40 developers located in the Banten region, namely Cilegon, Serang, Tangerang, South Tangerang, and Tangerang Regency by conducting direct field investigations regarding the value of transactions that were successfully booked in the second quarter of 2020.

Ali said, several projects experienced a surge in sales, but there were also those that continued to experience a decline in sales in the second quarter of 2020. Based on the analysis conducted, it is shown that projects with brands that are already strong in the market have relatively increased sales with varying growth.

According to Ali, this increase was greatly influenced by the fairly high sales increase that occurred in the Tangerang and surrounding areas, namely Tangerang, South Tangerang, and Tangerang Regency by 158.5 percent. Meanwhile, home sales in the Serang area edged up 3.2 percent. Meanwhile, home sales in the Cilegon area continued to decline by 43.0 percent.

"The highest increase occurred in the price segment above Rp1 billion, amounting to 164.5 percent, followed by the price segment below Rp.300 million at 153.9 percent, and the price segment between Rp.300 to Rp.500 million amounting to 119.6 percent," he said.

Meanwhile, Ali said, for units sold in the price segment of Rp. 500 million to Rp1 billion, up 41.8 percent lower than other price segments. This result made the composition of units sold in the small segment in the second quarter of 2020 to increase from 41.9 percent to 49.1 percent and the composition of the large segment to increase from 8.3 percent to 10.1 percent. Meanwhile, other segments experienced a decline in composition.

The amount of movement in the lower and upper intermediate segments

"There has been a market shift which can be clearly illustrated in the results of this research. This phenomenon shows that the moving market is in the lower middle segment and the upper segment. Meanwhile, the middle segment has relatively little movement," he said.

However, Ali predicts, in the third quarter, this market will also grow, following the plan to launch new products by several large developers targeting this segment. Apart from end-users, the investor market is starting to move more aggressively at this time. The incessant promos and attractive offers from several developers are starting to warm the market in general.

"The trend of decreasing interest rates is expected to increase public interest in buying houses, even though many investors use mortgages in the market. Some banks are even very aggressive in conducting current promos," he explained.

Ali said, 84.13 percent of home sales chose to use KPR. Meanwhile, 14.44 percent chose hard cash and 1.43 percent chose gradual cash.

"The movement of the housing market in Banten in the second quarter of 2020 is generally quite encouraging in the midst of current conditions. However, this will be challenging in the future, so that the market can be maintained and remain vigilant," he said.