Intiland Focuses on This Year’s Sales Increase Strategy

Jakarta, (28/08) – Property development company PT Intiland Development Tbk (Intiland) strives to continuously improve sales performance in the second half of this year. The company’s management has compiled a number of key strategies to boost sales this year, particularly from inventory marketing of property products.

Director of Capital Management and Intiland Investment Archied Noto Pradono acknowledged that the property market had not improved in the first seven months of 2018. The company projected that the condition would not change until the end of this year.

“In general, the property sector still faces considerable challenges and consumers still choose to take a wait and see attitude or tend to wait. The market needs a stimulus that can restore investor confidence and revive consumer buying interest,” Archied said further.

Facing and anticipating these conditions, the company prepared a number of key strategies that focused on maintaining and improving sales performance. The company is optimistic that the purchasing power of consumers and the level of demand for property products is still high.

One of the key strategies that will be pursued is launching a special marketing and sales program called Smart Deals Fest. The integrated promotion program which will be launched in the near future is expected to help increase sales in the remaining time of the year.

The launch of the Smart Deals Fest program, according to Archied, aims to provide opportunities for the wider community to be able to own Intiland’s property products with a variety of convenience facilities. This program will be held for three months, starting from 1 September 2018 to 30 November 2018.

“We will launch this special promo program in the near future and apply to all Intiland property products in Jakarta and Surabaya. All projects participate from the housing, apartments, commercial, offices, and warehousing. This is a very good opportunity for consumers to purchase property products, with special offers only in that period,” Archied said.

In the Smart Deals Fest program, the company prepared a number of attractive promo packages for prospective customers. Various facilities include long installment programs, fixed credit interest for up to 10 years, up to selling prices and special discounts.

Being part of the Smart Deals Fest, the company will launch the Feast on Fortune program, specifically for projects in Surabaya. Feast on Fortune is a series of exhibition and festival trips that take place on projects in Surabaya alternately.

Sales Performance

In the first semester of this year, Intiland managed to record marketing sales of Rp1.3 trillion. The number of sales in the segment derived from the development of mixed-use and high rise amounting to Rp969 billion, or 75 percent of the total, the segment of housing area development amounting to Rp270 billion, or 21 percent of the total. The segment of industrial estate development was noted to put the marketing sales value of Rp45 billion.

Intiland this year targets marketing sales to reach Rp3.3 trillion. Acquisition in the first semester of this year is equivalent to 38 percent of the total target. The Company will pursue the marketing sales target from inventory sales in all development segments, especially housing and apartment products whose development progress is nearing completion.

“Although the challenge is quite heavy and sectoral conditions are less favorable, we will strive to the maximum to achieve these targets. The main target for the sale of products that are nearing completion will make it easier for consumers to process the credit to banks,” said Archied.

The Company continues to monitor any changes that occur both macro and sectorally. This step is important to estimate the impact of each change and prepare the right strategy to anticipate it.

“We have collaborated and obtained commitments from a number of leading banks to collaborate to provide the most attractive financing offerings to consumers,” Archied said further.

At this time a number of new development projects the company is already in the final stages of development. Some of these projects include the development of integrated Praxis and Spazio Tower in Surabaya as well as apartments and 1Park Regatta Avenue in Jakarta.

According to Archied, aside from inventory sales, the company plans to launch a number of new project developments this year. The company has prepared at least three new projects that are ready to be launched this year. These projects include the development of apartment products in Jakarta and Surabaya.

“We are in the final preparation stage of the plan. In essence, we are ready to launch, but still, consider the conditions and market changes that occur. We remain optimistic, but we need to carefully measure the risk level of each step and consider the current absorption capacity of the property market,” Archied said.

A number of new developments included in the company’s plan this year include the Tierra project, an integrated mixed-use & high-rise development in Surabaya. Occupying a development area of 7.5 hectares, Tierra’s development is divided into several stages of development which include apartments, office buildings, commercial, shopping districts, hotels, to provide a large open area.

Another new development is the second phase of South Quarter which includes two apartment towers. Intiland is also preparing a development of a new residential area in South Jakarta.

According to Archied, the company has allocated capital expenditure (capital expenditure; capex) for this year’s development of Rp2 trillion. The allocation of capex is mostly used for the development of new projects and ongoing projects, but not for the addition of land reserves.

Consider future business development direction, Archied optimistic Intiland performance will be better. The company feels the need to establish cooperation with strategic investors who want to increase the investment value in the long term.

These efforts were pursued, among others, by opening up opportunities for cooperation with investors and strategic partners. The scope of this strategic collaboration can be in the form of joint ventures, joint operations, land development, and other forms of strategic cooperation. ***

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