JAKARTA (TheInsiderStories) – Local property developer PT Sentul City Tbk (IDX: BKSL) joined with Japan’s Sumitomo Corporation and property developer Hankyu Realty Co. to build a condominium complex on the outskirts of Jakarta.
The company said it is planning to complete three condo towers by May 2019 with a total of 1,095 units for Rp1.47 trillion (US$108 million) in Sentul, West Java. Last year, Sentul City has signed an agreement with Sumitomo to set up a joint venture company (JVC) called, PT Sentul Summit Development.
Hyanku said, the investment is part of its overseas expansion plan and has acquired a 25 percent stake in a joint venture established last year by the two partners. The Indonesian JVC, PT Izumi Sentul Realty, is owned 45 percent by Sumitomo and 30 percent by Sentul City.
Sumitomo and Sentul targets to book revenues of Rp2 trillion from the sale of three apartments being developed in Sentul City, in the outskirt of Jakarta on 500,000 square meters. The apartment is integrated with an office building, five-stars hotel and AEON Mall and scheduled for completion in December 2018.
Hankyu was invited to join the project by Sumitomo, which has run property businesses in Southeast Asia’s largest economy since the 1980s. The two companies have “a solid partnership” in numerous joint projects in Japan.
Based on a survey conducted by Indonesia Property Watch property market trends continue to show a positive movement. On the political year–under normal conditions–the property market cycle in Indonesia is expected to reach its highest point in 2019.
The CEO Ali Tranghanda stated, market shifts occur from middle-upper segment to lower-middle segment. This also causes the sales portion in the lower-middle segment to dominate by 59.17 per cent, followed by the middle segment 34.66 per cent and the upper segment 6.17 per cent.
This means that the property market will rise a year ahead and back to stagnant in the next year, waiting for political stability in Indonesia. Assuming that the general election is running smoothly, the property investment climate will still get tighter throughout 2019.
“We hope that the election will not negatively affect the property sector or the national economy. If the negative issue is very disturbing, then the property market will experience a longer market stagnation throughout 2019,” Ali said.
Sentul City is a fully integrated township located in the fast growing area in the South of Jakarta. It has an area 3100 hectares located between the fast developing area south of Jakarta and Bogor.