Property and real estate company PT Grand House Mulia Tbk (HOMI) has allocated a budget of IDR50 billion to continue the development of Parkville Serpong with its fourth cluster, Toscana. The capital expenditure (Capex) comes from both internal cash and bank loans.
The company, founded in 2006, focuses on residential estates and accommodations. It has multiple development projects including Parkville Serpong – located in the border of Serpong (Tangerang) and Parung (Bogor) which are parts of the Greater Jakarta (Jabodetabek) – and Premiere residence in South Tangerang.
With a concept of contemporary design with an open space and targeting newlywed couples, the Toscana cluster is still in its groundbreaking preparation phase. The presale is going well with 40% of the cluster has already been sold.
Grand Mulia Vice President Director Suryadi said the company has planned to develop a new multi-cluster residential area with two to four 4 clusters, totaling 500–600 units following the success of Parkville.
“With the success of Parkville 1, we are also planning to create a new residential area,” he said during a public expose on July 25, 2022.
Despite the rosy forecast on property industry, the decreasing public purchasing power due to the prolonged COVID-19 pandemic is something that needs to be considered.
Deputy Finance Minister Suahasil Nazara said earlier that the pandemic made public hold back its consumption needs or long-term assets such as property. The lack of purchasing power or the decreasing demand to buy properties might have an impact to property sale. Economic uncertainty due to COVID-19 pandemic still also has an impact to Indonesia.
“People think that economic activity will decline and people will start to reduce purchases of long-term assets, including property. Short-term uncertainty causes that. If you look at the demand index for commercial property, it will fall immediately,” Nazara said at the 2022 Property Outlook held by CNBC Indonesia on Febuary 17, 2022.
