Intiland Sets Target to Increase Marketing Sales
Jakarta (25/01) – The national property developer, PT Intiland Development Tbk (Intiland), is of the opinion that the property market in 2017 will be more conducive, with the tendency to be better than it was in the previous year.
Correspondingly, the company has set a target for 2017, which is to increase 35-40 percent of the marketing sales from that in 2016.
Intiland’s executive director of Capital and Investment, Archied Noto Pradono said this year’s property market had the tendency to grow. Aside from this prediction, the growth in the marketing sales will also take into the consideration the company’s plan to launch two big-scale projects this year.
“Political instability which seemed to reach its highpoint in the fourth quarter of 2016 led us to reschedule the launch of two of our big projects in Jakarta and Surabaya, respectively,” said Archied. Both projects are big-scale mixed-use and high-rise developments located in the business hubs in Jakarta and Surabaya.
Archied said that the weakening property market throughout 2016 directly impacted the sales performance. The political instability in the country led to the market opting to wait and see, even though the government had issued several policies deemed to be pro-market, such as property ownership by expatriates and tax amnesty program.
Marketing Sales 2016
Throughout 2016, Intiland recorded Rp1.632 trillion of marketing sales. This is 13 percent lower than the company’s marketing sales in 2015, which reached Rp1.874 trillion. Aside from the slow market, the rescheduling of the two projects also put a pressure on the marketing sales.
The biggest contributor to the marketing sales in 2016 is residential development projects, with a contribution of Rp648 billion, or 40 percent of the total income from marketing sales. Another big contributor is mixed-use and high-rise segment with a contribution of Rp590 billion or 36 percent of total sales.
Industrial estate segment contributed Rp81 billion or 5 percent of the total sales. The other 19 percent or Rp313 billion come from investment property segment, which comprises rentals of office and retail space, facilities, warehousing, and industrial estates; and the management of golf course and other sports facilities.
Archied said based on the type, development income remained the biggest contributor to marketing sales with Rp1.319 trillion or 81 percent of the total marketing sales. Meanwhile, recurring income reached Rp313 billion or 19 percent.
“Property investment segment, which is one of the company’s sources of recurring income, grew 23 percent from the previous year. This is notably because of South Quarter office complex going into operation. We will continue to develop the sources of recurring income as recurring income provides stability for our operations and growth,” Archied said.
The completion of South Quarter office facilities and the rental of Standard Factory Building in Ngoro Industrial Park are imporant factors in the growth of the recurring income.
Another segment which showed relatively good performance is residential area development. This segment recorded a 22 percent improvement in marketing sales, from Rp530 billion in 2015 to Rp648 billion in 2016. This improvement is especially due to the sales of residential units in Graha Natura residential estate in Surabaya and Serenia Hills in South Jakarta.***