Jakarta, December 8, 2023 — PT Modernland Realty Tbk. (“the Company”) held a Public Expose event at Modern Golf & Country Club, Kota Modern, Tangerang.
The event was attended by the Board of Directors, Commissioners, and Management. It aimed to present the Company’s performance and challenges in 2023, as well as its business prospects for 2024.
Dharma Mitra, Director of the Company, explained that Indonesia’s economic growth remains strong despite global economic uncertainties. Data from Statistics Indonesia (BPS) shows that economic growth in Q3 2023 reached 4.94% (yoy), slightly lower than 5.17% in the previous quarter.
Looking ahead, growth is expected to be supported by domestic demand, including private consumption, government spending, and investment. Bank Indonesia projects 2023 economic growth to remain within the range of 4.5%–5.3%.
According to Bank Indonesia’s Residential Property Price Survey, residential property prices in the primary market increased annually in Q3 2023. The Residential Property Price Index (IHPR) grew by 1.96% year-on-year, higher than 1.92% in Q2 2023.
This growth was mainly driven by an increase in large-type house prices by 1.70% year-on-year. Meanwhile, small and medium-type houses rose by 2.11% and 2.44%, respectively.
Despite rising prices, residential property sales in the primary market remained weak, contracting by 6.59% year-on-year in Q3 2023. However, sales performance—especially landed houses—is expected to improve in Q4 2023 and throughout 2024.
A key positive catalyst is the government’s tax incentive in the form of VAT borne by the government (PPN DTP) of up to 100% for houses priced below IDR 5 billion. The first phase runs from November 2023 to June 2024, covering homes worth up to IDR 2 billion.
From July to December 2024, the incentive will be reduced to 50%, still based on the same valuation.
This policy provides a positive outlook for the property sector, including the Company, as it is expected to boost sales performance.
The Company continues to enhance its marketing efforts through innovation, including launching new residential clusters with updated concepts and designs across projects in Jakarta and Tangerang, while accelerating project development. The Company is also expanding partnerships with both domestic and international investors.