Jakarta (23/7) – The property developer company PT Intiland Development Tbk (Intiland, DILD) has earned an IDR 1.3 trillion of marketing sales in the first half of 2018. The company’s marketing sales grow 40% within the same period last year that achieved an IDR 919 billion.
According to Archied Noto Pradono, Intiland’s Capital Investment and Management Director, the growth is mainly still supported by the sales of new projects such as the integrated mixed use development-Fifty Seven Promenade, as well as the sales of residential project units. “Generally, the property market is still facing a severe and challenging situation. However, in the second quarter of this year, we still book satisfactory sales performance for residential products, such as landed houses and apartments,” Archied explained.
Four residential projects noted significant contribution, according to the marketing sales result in the first half of this year. Those four projects are the housing section Serenia Hills and 1Park Avenue Apartment in South Jakarta, Fifty Seven Promenade Apartment in Central Jakarta, as well as the residential section Graha Natura in Surabaya. These four projects have contributed an IDR 1.1 trillion, which is equal to 87 percent of total marketing sales.
“Throughout the second quarter of this year, the best sales performance are mostly supported by residential development projects,” Archied said.
Archied explained, based on the segmentation, the development of mix-used and high-rise projects have booked an IDR 969 billion which is equal to 75 percent of total marketing sales. This performance soars 325 percent, compares to the first half of 2017 which was an IDR 220 billion. The biggest contributor in this segment is the sales of Fifty Seven Promenade Apartment that achieved an IDR 783 billion.
The next contribution comes from the sales of residential section development. This segment, which has seven residential sections, contributes an IDR 270 billion or 21 percent of total marketing sales.
The development of Serenia Hills residential section is noted as the biggest contributor to marketing sales in this segment. The residential section, which is located in Lebak Bulus, South Jakarta has contributed an IDR 140 billion of total marketing sales. Meanwhile, the industrial section development notes an IDR 45 billion of marketing sales.
Based on the locations, the sales of projects that developed in Jakarta contributes an IDR 1.08 trillion, which is equal to 60 percent of total marketing sales. The rest, an IDR 199 billion, comes from the sales of property units in Intiland’s projects in Surabaya.
Aside than marketing sales contribution, the company books an IDR 276.1 billion of recurring income in the first half of this year.
Archied admitted the general situation of the property market has not normally moved. Aside than the tend-to-weaken market condition, the property market is also facing some challenges, that include the rising trend of interest rate.
The company appreciates Bank Indonesia’s policy in loosening the regulation of loan to asset value (LTV) ratio in the housing sector. The relaxation of this regulation could bring fresh-air and positive impact on the property industry players, as it brings flexibility to the customers in deciding the minimum down payment for the housing loan.
“We appreciate that policy, as it becomes the stimulus for the growth of property market. Certainly, the consumers are really helped by the new policy,” Archied said.
The company will keep monitoring every change in the macroeconomic situation, as well as the business sector. This step becomes important to expect the impact of changes and to prepare the appropriate anticipation strategy.
“We will continue to partner with banks as lenders, to provide interesting offers to our customers, as well as to increase the company’s sales performance in this year,” Archied continued.
The company is optimistic about a better market condition in the second half of this year, although there have been no positive changes. Intiland is preparing to develop some new projects, which will be launched in this year.
However, the company keeps taking prudent steps in order to expand and to launch new projects. Despite having some strategic development plans, the company will always consider every potential risk that might happen at every step of its expansion plan. ***