Jakarta. PP Properti, the property unit of state-controlled construction firm PP, estimates its marketing sales, or sales of property that has yet to be built, to have reached Rp 2.33 trillion ($127.5 million) in the January-September period of this year.
This amount is equivalent to 53 percent of the company's full-year target, thanks to outstanding sales of apartments.
The company said in a statement on Monday (16/10) that the main contributors to its marketing sales were the Grand Shamaya apartments in Surabaya, East Java, and Begawan apartments in Malang, East Java. The company is optimistic that it will meet its Rp 2.9 trillion marketing sales target for the year in the final quarter.
"We are optimistic that this year's target will be achieved as each of our products, ranging from hotels and residential units, will contribute in achieving our performance," PP Properti president director Taufik Hidayat said in the statement.
PP Property has not yet released its full financial reports for the first nine-months, but companies typically publish their full audited reports for the period towards the end of October.
The company expects more sales in the remainder of the year, as it is developing several property projects and plans to start offering it to buyers in the fourth quarter. These include Weston View apartments in Surabaya, Louvia student apartments in Jatinangor, West Java, and the soft opening of Mall Lagoon Avenue in Bekasi, West Java.
In Indonesia, buyers of apartments usually lock their chosen units and pay – be it in cash or in installments – before the construction of the entire project is completed.
The developer's sales team typically starts actively marketing new apartments during the launch, and buyers can only see show units of the apartments.
PP Properti also plans to break ground on several projects, such as Victoria and Isabela towers in Bekasi, a second tower at Amartha View and the second and third towers at the Alton apartments in Semarang, Central Java.
The company raked in about Rp 1.52 trillion in fresh capital from a rights issue in April, with most of the proceeds going toward land purchases. The developer currently has a land bank of about 100 hectares and it is set to increase that to 200 hectares by the end of this year.
PP Properti is currently working on 14 property projects, which were carried over from last year, and since it is set to increase the size of its land bank, it expects to be working on 26 property projects next year, with some new and some carried over from this year.
"Next year will be our 'harvesting' year as we will focus on our business operations. Thus, next year's performance will keep growing well as we will have more controlled debt since we do not need to buy new land," Taufik said.
To improve its competitiveness, the company will expand its sales and marketing strategy early next year by creating e-commerce websites and applications to educate and market its products. It will also implement a smart-city concept in several of its projects to improve efficiency and lower operational costs.