Govt relaxation on LTV boots property growth

JAKARTA. The incomes of property issuers have increased in the third quarter of this year compared with the same period in 2015. However, during the last three years the business segment has lower growth compared with previous years.

Managing Director PT Perdana Gapuraprima Tbk (GPRA) according to Menurut Arvin F Iskandar, the growth of GPRA’s business was supported by the relaxation on loan to value (LTV) in this year.

To date, GPRA has booked an IDR500 billion of marketing sales income. This number equals to 90% of the target of marketing sales incomes set by the developer in 2016. Most of the marketing sales incomes come from the housing sales.

In order to complete the target, management of GPRA is now designing business plans, including to involve Bank Tabungan Negara (BTN) for the next three months. The partnership is expected to boost the sales of housing credits.

Massive developments

Meanwhile, PT Agung Podomoro Land Tbk (APLN) claimed that the LTV policy did not bring significant impact to the company’s business. Investor Relations at PT Agung Podomoro Land Tbk Wibisono said that the income rise of the company was mainly driven by the developments of new property projects. The expansion is the key of Agung Podomoro’s business growth.

Agung Podomoro is optimistic to book a 5%-10% business growth by the end of this year. In the third quarter of 2016, the company has booked a 5.8% of business growth.

Intiland Development also experienced positive business growth. During the third quarter of this year, the developer booked a 5.7% of income growth to IDR1.6 trillion.

Corporate Secretary of Intiland Development Theresia Rustandi said that the company is optimistic to reap positive growth by the end of this year. “The roperty business remains flat, but there are signs of improvement”, she said. Intiland is also optimistic to reap as much as IDR2.5 trillion of income by the end of 2016.

(MUHAMMAD FARID/Translator)