Property Sectors April 10 2013

Ciputra Property acquired 7.2ha land in Puri, West Jakarta

It was announced in the local news today for Indonesia Market Summaries that CTRP has completed the acquisition of 7.2ha land in Puri, West Jakarta with a transaction value reaching Rp1tn or Rp15mn/sqm. The company has yet to disclose the planned project in the area or its cost, but they will most likely build a high rise project. (Investor Daily)

Comments: Land ASP in Puri Indah is approximately Rp17-20mn/sqm, thus, the deal in our view is a good one for CTRP as the company is paying at a discount.

Kawasan Jababeka to diversify more into residential and commercial projects

Through its subsidiary, PT Graha Buana Cikarang, KIJA is planning to be more aggressive in developing residential and commercial projects. KIJA will allocate 600ha out of 5,600ha for their residential and commercial projects. The company just launched their Beverly Hills cluster, which is a homestay concept project, last month with an ASP of Rp2.3bn where one unit has 11 rooms. The cluster is currently sold out, but KIJA will launch its second phase this month with an ASP of Rp2.3-3.0bn. This year, KIJA expects revenue from residential and commercial to be more than half of the company’s total revenue last year of Rp1.4tn. (Kontan)

Super luxurious property ownership by foreigners is expected to be allowed

Property ownership by foreigners in Indonesia is starting to get attention from the government as regulation revisions regarding it is starting to be discussed. The Indonesia Market Summaries noted that The Public Housing Ministry (Kempera) suggested three revisions to the regulation:

1. Flats ownerships are limited to 750sqm in size and at least Rp5bn in value;
2. For landed housing, an area of at least 400sqm and value of at least Rp10bn;
3. Ownership timeframe to be changed from 25 years to at most 50-60 years. Therefore, only the premium apartments and landed housing are allowed to be owned by foreigners. (Kontan)