ELARTIZEN - The moment of the grand celebration of the 2024 Election Political Year is expected to have an impact on the growth of the property industry nationally and regionally. Historically, political years always trigger economic uncertainty which makes property investors tend to wait and see about the Indonesian market. Is this year's prediction still the same for this industry.
It is known that the property sector is one of the biggest engines of economic growth. In line with that, the development of infrastructure outside Java has encouraged better property growth outside Java. Reflecting on the organization of previous elections such as in 2014 and 2019 from the data there is indeed a decline in sales, this is where investors seem to be waiting. After all, at that time after the presidential election the infrastructure had improved, the economic conditions were stable and without turmoil.
Similar predictions will occur this year, and the downward trend will not last long, of course, only until the beginning of the year after the election. This trend of shock politics is utilized by developers in their sales.
Developer Promotion
On the developer's side, despite annual political issues, the business plan must still run in developing new projects by providing gimmicks and incentives as well as the best incentive selling strategy tricks for consumers.
According to Ali Tranghanda, CEO of Indonesia Property Watch who is active in the field of Property Consultant, revealed that currently developers are very observant of opportunities. Especially in today's digital era.
"In the past, people were very convincing to go around to see residential choices. Now with social media alone, the influence is widespread on consumer choices. This is where the Developer must pay close attention to the variety of promotions". He continued, "Moreover, Genzi (GenZ) Millennials are treated differently, if the developer does not adjust dynamically, they want it to be conventional, don't even look at it, they still think a lot about buying it".
Well, asked if in this election year usually by showing a finger that has been dipped in ink to get attractive promos.
"Yes, it's okay to follow to get discounts or bonuses. Because like this, the session is at most two or three days long and even then usually for culinary promos or F&B, Resto. because the decision to buy is not enough daily, so this promo is not massive lah. Property promos are even longer. Seen because this is the property industry for the future and not just for a moment". He explained.
Transit Oriented Development (TOD)
In line with the development of the property business. Ismet Natakarmana Founder of Synergy Group highlighted several things for developers as well as positive property trends.
For him there is a shift in a property area, in the past developers talked more about promos to the location of the location then access then facade and layout. Well, Ismet explained that this year you have to "Get get", take (buy).
"This is so, if we talk in the current generation, this is the millennial generation, GenZ. If we want to build a residence, make a residence with facilities that support the lifestyle of the current generation, open space clusters their interests. Everything they need is available, from places to eat, cafes (coffee), gyms to the internet. Because their life with their world is all online. In my day, the house had to be quiet, locked and closed, its own cluster."
"This generation is often on the move. Moving around, in the sense that their lifestyle cannot stay in one place. But the truth is, they can move around, but if there is access to transportation that supports them to get out of their residence and can go anywhere easily, no hassle, they can stay too. So housing with transportation such as Transit Oriented Development is their choice, everything is there and supports their lifestyle." Ismet explained.
This was highlighted by Ismet Natakarmana who also opened the Synergi Ngopi activity. A non-profit activity that becomes a ground coffee between developers. Even though they are competitors, they remove their attributes when they meet even though their businesses compete.
"As a property consultant for developers, I want to make everyone in the Synergy group happy, I want to have a positive impact on many people". He said.
He continued, TOD is relevant today because it makes the time and activities of people who work in the city, less wasted on the road because of traffic jams. TOD is able to optimize the function of increasingly limited and expensive land, based on public transportation in the area.
In line with the idea of the TOD concept. Ali Tranghanda added, because land has begun to be limited, such TOD vertical housing will be an added value that is worth considering for future investment.
Fresh Wind of VAT DTP
The government's decision to subsidize Value Added Tax (VAT) borne by the government (DTP) for the purchase of landed houses and flats with a maximum price of IDR 5 billion is a breath of fresh air for the national property sector.
Previously, Finance Minister Sri Mulyani Indrawati had issued a regulation providing incentives in the form of government-borne value added tax or VAT DTP. The regulation is contained in Minister of Finance Regulation (PMK) Number 120 of 2023 concerning VAT on the Delivery of Tread Houses and Flat Units borne by the Government for Fiscal Year 2023.
PMK 120/2023 was signed and took effect on November 21, 2023. However, VAT on the purchase of this house will not be collected from November 1, 2023 to December 31, 2024.
Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Nathan Kacaribu explained that this PMK is part of the government's policy to encourage the property business and home ownership. Specifically for the VAT DTP policy, it applies to houses with a price below IDR 5 billion.
Banking program
Property VAT DTP incentives are a breath of fresh air for banking sector businesses. The policy was responded positively by a number of banks. The policy is expected to boost market interest and residential loan take-up, especially for first time buyers.
This policy is expected to ease prospective debtors, especially on costs including provision, admin, notary, life and fire insurance.
"With these incentives, banking programs have now also begun to be active in channeling their loans so that prospective debtors can quickly buy and from the property developer program side, they are also trying to get consumers to buy immediately," Ismet said.
It has been viral about the mortgage / KPA installment credit period of up to 35 years, although it has not been finalized, so or not Ali Tranghanda explained that the installments can be as affordable as we invest. "This is the same as buying something, after paying off buy more installments again pay off buy more installments. the difference in property is a long-term investment that produces, the mindset must be changed, this is true if there are installments of up to 35 years it is very extraordinary in property ".Ali explained.
GET GET, Take and Buy
Both Ali Tranghanda and Ismet Natakarmana agree to invest and immediately have housing, in 2024 it's time to buy immediately, don't wait after the big celebration of the Presidential Election.
After the President is elected and the economy is running well property prices tend to increase again. It's time this year to take, Get Get and buy now. It's Time to Buy, explained this property expert, developer consultant and property businessman.
"Whoever the president is, whether it is a public idol or not, after the election, the property market will definitely bounce back". Elatizen, Hendra Ocky W.
