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Premier Insight : Despite relatively slow property market in the past few years, there were an additional 8,000 new apartment units in 2017
Friday, January 11, 2019       09:24 WIB

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Property sector: Despite relatively slow property market in the past few years, there were an additional 8,000 new apartment units in 2017. In addition, the new apartment supply was doubled in 2018 doubled to 17,524 units. However, the huge supply is not in-line with the absorption rates which only rose 1% yearly. Thus occupancy rate for apartments were decreased by 1.4% in 2018. Colliers forecast there will be additional apartment supply of 21,150 units and 12,829 units in 2019 and 2020. Given plentiful supply and low absortion, apartment only provides yield of 5.5% in 2018 (vs. 2013: 10.2%). Thus Colliers advise the developers to capture end user and mid-low segment instead of investors. (Bisnis Indonesia).
 Comment: Our view is in-line with Colliers' view which prefers companies with strategy to focus more towards mid-low and end user demand. and remain our top picks in residential property sector. We like 's strategy to start developing low cost housing in Maja to capture the strong demand in mid-low segment. We also like given its mix-used development plan which increases its apartement value given the completeness of facilities in the location.  

Sumber : IPS RESEARCH

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