Jakarta (1/24) – Property developer PT Intiland Development Tbk (Intiland; DILD) recorded sales revenue/marketing sales of Rp1.64 trillion in 2021. This figure was 75 percent higher than the marketing sales in 2020, which was recorded at Rp937 billion.
Archied Noto Pradono, Director of Capital Management and Investment at Intiland, explained that the increase in marketing sales in 2021 mainly was derived from sales in the residential area development segment. In 2021, the Company successfully marketed two new projects, namely Amesta Living in Surabaya and DUO Talaga Bestari in Tangerang.
“Last year the property market began its revival. The policy stimulus from the Government proved to be quite effective in encouraging property sales, particularly in the housing segment. Intiland’s sales in this segment increased considerably, both from the development of new projects as well as ongoing projects,” Archied said further.
Of the four development segments operated by the Company, residential contributed the largest marketing sales. In 2021, this segment recorded sales results of Rp922 billion, making up 56 percent of the total. This gain increased by 45 percent compared to marketing sales of Rp638 billion recorded in 2020.
The second largest contributor to marketing sales was the mixed-use & high rise segment, with a value of Rp390 billion, or 24 percent of the total. Sales from this segment skyrocketed, increasing by 159 percent from 2020 figure, which was recorded at Rp151 billion.
“The surge in sales in the mixed-use and high-rise segment mainly came from the launch of the new Tierra SOHO project in Surabaya in the second quarter of last year, as well as the sales of apartment units in 1Park Avenue, The Rosebay, Graha Golf and Aeropolis,” explained Archied.
A positive growth trend also occurred in the industrial estate development segment. In 2021, the industrial estate segment recorded marketing sales of Rp329 billion, or an increase of 123 percent from the achievement in 2020, which stood at Rp148 billion. Sales from this segment contributed 20 percent to the total marketing sales recorded in 2021.
This increase, according to Archied, mainly came from the sale of industrial land from the development project of the new industrial area Batang Industrial Park located in Batang, Central Java Province. Other contributions came from the sale of industrial land in Ngoro Industrial Park in Mojokerto, East Java, and warehousing facilities at the Aeropolis project in Tangerang.
From these achievements, Archied emphasized that the Company’s strategy in launching new projects has proven to be effective in boosting sales performance. Of the total marketing sales revenue recorded last year, Rp814.7 billion or 50 percent of the total came from the launch of new projects.
“Although last year we were still in the pandemic condition, people have begun to make purchases and investments again. We entered with the right momentum for the launch of a new project, and the results were effective: it received a strongly positive response and appreciation from the market. We believe that conditions will improve in the future and consumers will no longer take a wait-and-see stance,” he said further.
For this achievement, the Company appreciates the Government’s strategic steps in executing policy stimulus to increase the growth of the property sector. Parts of this policy stimulus were effective in making it easier for people to buy or invest again in the property sector.
Archied explained that in 2021, the Company also succeeded in increasing revenue from the investment properties segment, which is a source of recurring income. The Company in 2021 posted recurring income of around Rp658 billion, an increase of 11.5 percent from 2020 figure. Contribution from this segment came from management of areas, sports facilities, office and retail rentals, as well as standard factory building facilities in its industrial areas.
Given the positive trend that had occurred in the property market over the past year, the Company hopes that this year conditions in the market will improve. The year 2022 is expected to deliver a recovery momentum for the national property market, and increasing demand from the market.
According to Archied, the Company is optimistic that this year’s sales performance can be higher than last year’s. This year, the Company targets total marketing sales of Rp2.4 trillion, an increase of around 47 percent from the previous year’s achievement. To achieve this target, the Company will remain reliant on sales proceeds from several new project developments to be launched this year as well as from new developments in ongoing projects.
“This year we plan to launch a number of new projects, such as residential and commercial. These new projects are already in the development pipeline, and we are waiting for the best momentum to launch them this year,” stated Archied.
Several new developments to be launched this year include a housing project in North Jakarta, the development of three new clusters in Surabaya and Jakarta, and a commercial property in Tangerang.
The Company hopes that the national property market will grow steadily this year. The Company’s management has formulated a number of key strategies to bolster sales performance and deliver convenience to customers in purchasing property products from the Company, such as via an integrated promo program that will be rolled out this year.
The Company believes that demand for residential property products is still robust and will continue to increase. For housing products, the Company’s project portfolio includes Serenia Hills, Talaga Bestari, DUO, Magnolia Residence, Pinang Residences, and South Grove residential estates located in Jakarta and Tangerang, as well as Graha Famili, Graha Natura, and Amesta residential estates in Surabaya.
Meanwhile, to cater demand for high-rise residential products, the Company shall rely on sales from several projects in Jakarta, such as Fifty Seven Promenade, 1Park Avenue, SQ Res, Regatta and Aeropolis apartments. Meanwhile, in Surabaya, the Company is seeking to further market its Graha Golf, The Rosebay, Praxis, Tierra, and Sumatra36 property products. ***