INTERVIEW
Sinar Mas Land project a hit among millennials The company also saw a spike in interest for high-end projects Nava Park and The Zora.
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ndonesian developer Sinar Mas Land has seen a spike in interest in landed housing, as demand has grown relative to condos in Indonesia’s housing market, says managing director Alim Gunadi. “The type of properties experiencing an increase in the property sector in Indonesia is the landed housing. At the end of 2020, the supply for the newly- launched landed houses increased as compared to those in 2019 or 2018,” he said. “Now, everybody is concerned about the living space, those what we call daily houses where they can stay, work, and play in the same place. I think that is the condition for the landed house and currently the landed house is the only sector that can be rising in 2021,” he added. Alim Gunadi said that there is currently an oversupply of apartments in Jakarta as many expatriates have yet to come back to the country. Whilst this has impacted spaces allotted as rentals, the apartments also saw a decline in pricing. “First, there is the oversupply of apartments in Jakarta. The second one is that many renters come from the expatriate group who are still in their countries. So, the behavior of these renters also impacts the supply and demand of the economy,” he said. “If we see the property market in Indonesia overall and based on the research from the central bank, especially for the property pricing, the trend is increase in price after COVID-19 came into Indonesia in March or April of last year, ” he added. ‘Moving Quickly’ Gunadi told Real Estate Asia that they launched ‘Moving Quickly’ after observing that the market looking for residential properties are mostly millennials where buyers may immediately move in upon purchasing the property. The innovation with the “moving quickly” properties was to help millennials move into ready-made landed properties quickly. An extensive ad campaign on social media offered sweeteners such as a discount of up to 25% for residential properties, and free BPHTB, which is a land transfer tax usually paid by the purchaser. Costing only around US$100,000 (Rp 1.5b) for every landed house, Sinar Mas Land was able to sell 350 units in the beginning of 2020 alone. “One of the key successful launches from Sinar Mas Land is Moving Quickly. We offer the landed houses which are ready to live in as these are available stock. We operate also through many social media channels and digital channels like YouTube and Instagram, and we have been on Facebook, etcetera. That is why for the first period in 2020 26
REAL ESTATE ASIA | Q1 2021
One of the key successful launches from Sinar Mas Land is ‘Moving Quickly’
‘Moving Quickly’ was launched for millennials that tend to immediately move in upon purchasing property. The innovation was to help them move into readymade landed properties quickly
we sold 350 units,” he said. “The behavior and the interest of the market is changing, mostly with the market of millennials. That is why we must be adaptive and do some innovations with the design and offering to the market. Ready houses covered 89% in 2020, especially in the city. The pricing that we offer is mostly under 1.5 billion rupiah, and that is an affordable price there. The market can be absorbed, and it is fit for the millennial condition and income,” he added. Partnerships on high-end properties Gunadi said that not whilst the demand for budget housing is increasing, the same can be said for high-end properties. Sinar Mas Land partnered with the likes of Hong Kong Land and Mitsubishi Corporation to bring new innovative options to the market. Sinar Mas entered a joint venture with Hong Kong Land to create the 68-hectare Nava Park. This luxury property project is priced at $2m for every 600 square meter unit. “The high-end models that we have is a joint venture with Hong Kong Land that has approximately 68 hectares. We launched this last year and the size is around 600 sqm per unit. It’s very expensive for the Indonesian market as it costs at least US$2m but I think the demand is there,” he said. A JV with Mitsubishi Corporation to create The Zora,
