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PP’s subsidiaries expect property sales to pick up after elections
The elections are expected to run smoothly and will create an opportunity for property sales to grow.
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Klapa Village low cost apartment project in Duren Sawit, East Jakarta (kompas.com/Dani Prabowo)
T
he subsidiaries of state-owned construction firm PT Pembangunan Perumahan (PP), publicly listed property firm PT PP Properti and construction services provider PT PP Presisi are upbeat that they will meet their sales targets this year as the property market is expected to recover after the presidential and legislative elections in April.
PP Properti director Indaryanto said property sales were expected to pick up after the elections following a slump last year. He believed sales would increase as the people who had waited for some time to buy houses or apartments would enter the market after the elections.
He said many people thought the elections would run smoothly and provide an opportunity for property sales to grow again.
The company’s revenue decreased 5.64 percent year-on-year to Rp 2.56 trillion (US$180.76 million) last year because of sluggish apartment sales. Its recurring income from hotel and property rental also decreased throughout 2018.
Despite the slump in revenue, the company’s profits increased. Last year, PP Property’s profit rose to Rp 471.26 billion from Rp 444.68 billion in 2017 thanks to an increase in nonoperating income from its deposits in banks.
Investa Saran Mandiri analyst Hans Kwee told The Jakarta Post that last year’s slump in the property market was mainly caused by the interest rate hike by Bank Indonesia, which resulted in a mortgage rate hike.
But as the elections are getting closer, Indaryanto said his company expected that the property market would be revived this year because the election result could encourage more people to buy property.
