Source: Sindonews.com | June 25, 2024

Property observer Panangian Simanungkalit projects that the property market, especially in the housing sector, will get better in the era of the Prabowo Subianto-Gibran Rakabuming Raka government. The signs of the property sector booming are very palpable. Almost all indicators support a boom in this business from 2025 to 2029.

“Concerns that the election at the beginning of last year would be chaotic were not proven. This is further supported by the extraordinary program from Prabowo-Gibran as the election winning pair, where they will present a 3 million house program. This will certainly have a big influence on the enthusiasm of the property industry in general,” ” said Panangian in the Property Talkshow with the theme Observing the Property Market in the Era of the New Government which was held, Tuesday (25/6/2024).

What’s even more amazing is that the next government is smart enough to look for loopholes to revive the people’s economy. According to Panangian, how to make the national economy improve, requires a sector that can create people’s welfare, can create social and equality, and can also create economic growth above 5%.

“That is the philosophy of Prabowo – Gibran. Well, yesterday a budget of IDR 71 trillion for free nutritious food was approved. This is a breakthrough that has never existed before. And I heard that there will be 50 thousand points that will be started for this program. We can “imagine how much economic creation this one of Prabowo-Gibran’s flagship programs will bring,” said Panangian.

He also said that the 3 million house construction program would also raise enthusiasm and have a positive psychological impact, especially for developers who are members of housing associations such as Realestat Indonesia (REI), Apersi and Himperra, and others. “For property entrepreneurs, this program gives a signal that the property industry will revive in the era of the next government,” said Panangian.

Not only that, the Indonesian economy remains resilient amidst increasing global uncertainty. Data from the Central Statistics Agency (BPS) shows that economic growth in the first quarter of 2024 was 5.11% (yoy), an increase compared to growth in the previous quarter of 5.04% (yoy). Looking ahead, economic growth in 2024 is predicted to remain strong in the range of 4.7-5.5% (yoy) supported by domestic demand, especially from continued growth in consumption and building investment in line with the continued development of National Strategic Projects (PSN).

In line with that, the government is also very concerned about meeting housing needs so that by 2045 Zero Backlog is achieved. “In 2023, the housing backlog will still be around 10 million units. If the government builds 500 thousand per year, that means it will be finished in the next 20 years. This number has not been added to the housing needs for new families which reaches 750 thousand to 800 thousand per year. So the government needs to build 500 thousand + 750 thousand thousand = 1.25 million per year. “To make this happen, collaboration and the active role of private developers are really needed,” explained Panangian.

Developer Role Panangian emphasized that the property sector is a driver of the economy and also contributes to development. For this reason, according to him, the next government must be able to see this as a greater opportunity to move the economy.