Landed Houses And Industrial Sector Expected To Support Property Sector Next Year

Saturday, 02 Nov 2024

By ferry@insightinnews.com

Triniti Land's developer predicts that the property sector will improve and recover by 2025. The most stable and supportive sectors are landed houses and industry. Additionally, there is potential for growth in 4-star and 5-star hotels.

"There are several sectors we need to pay attention to. Hotels remain relatively stable. The sectors that consistently stay stable are landed houses and warehouses," said Ishak Chandra, CEO of Triniti Land, during a media gathering in Jakarta on Thursday, October 31, 2024.

Ishak mentioned that he sees several areas that could develop in terms of property over the next few years. A total of 16 regions include Jakarta, Bogor, Tangerang, Bekasi, Bandung, Yogyakarta, Semarang, Surabaya, Bali, Medan, Batam, Palembang, Lampung, Balikpapan, Samarinda, and Makassar.

"Every year I conduct research, and the top 10 cities don't change much. Besides Jakarta, the focus is on Bogor, Tangerang, and Bekasi. After Jabotabek, the attention shifts to Semarang and Bandung, then Yogyakarta and Surabaya," he explained.

"Initially, Bali was not included, but now it is on the list. In Sumatra, we have Medan, Batam, Palembang, and Lampung. In Kalimantan, there are Balikpapan and Samarinda. For Sulawesi, we have Makassar," he added.

He highlighted that Balikpapan and Samarinda are two cities that will see significant property development due to the new capital city, Nusantara (IKN). This is because IKN will take time to attract people, while Balikpapan and Samarinda are already bustling cities nearby.

To develop a property, two key factors are needed. First is critical mass, which refers to the population. Second is the economic base, which involves transactions. The new capital city (IKN) will take time to build its critical mass and economic base. Currently, there is little population and activity there.

The industrial sector is expected to stabilize, supported by data centers, manufacturing, and warehousing. Data centers are usually located near big cities for easier access, while manufacturing is more spread out but still within Java.

To maintain property sector stability from 2025 onward, the government should provide incentives to boost purchasing power. This could include removing the planned increase of Value Added Tax (VAT) to 12%, eliminating the Land and Building Acquisition Tax (BPHTB), and reviewing property regulations for foreign ownership.

The proposed VAT increase to 12% is significant and burdensome. BPHTB is a local tax, different from central taxes, so removing it could ease financial pressure.

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