Awakening of Property Issuers as Investment Opportunities

Clothing, Food, Residence. These three things are the 3 types of items that have always been heard to the author since he was in elementary school. This is due to the vital function of these 3 types of goods for human life. One of them is a board as a place to live. 

Residence is a place for humans to take shelter and shelter from harm and also a place that facilitates the creation of a harmonious family that gives birth to the next generation of the nation. The type of board itself is divided into several, such as apartments, houses, boarding houses, and so on.

So, it is not surprising that most people have aspirations to have private residences with various uses, both for occupancy, for rent for passive income. This is a huge potential for the property industry. This potential comes from the primary human need for proper housing, meaning that people have a place to live with proper sanitation, adequate rest areas, and can carry out food and clothing activities safely and comfortably. But this is not enough, now property is also a symbol of prestige for its owners.

Therefore, in the property industry developers are making new breakthroughs on the housing they sell from various aspects. For example, Bumi Serpong Damai (BSD) in the early 80s the BSD area was a rubber forest that was far from the touch of the community, but since it was developed into an independent city, the BSD area provided direct toll access to the BSD area, besides that BSD is also the center for the performance of events both on a national and international scale with the ICE Building (Indonesian Exhibition Center) which is a concert venue for international artists, the GIIAS car exhibition (Gaikindo Indonesian International Motor Show). 

In addition, BSD has also begun to develop an area that was originally only a residential area into a business area with the multinational company Unilever.  which is headquartered in BSD. Another example is Pakuwon Jati, Pakuwon is one of the well-known property developers from Surabaya who has successfully expanded its business in Indonesia. Pakuwon has a breakthrough by changing an area that was originally just a place of mobility and is considered not feng shui to become an integrated area such as Kota Kasablanka. 

Kota Kasablanka is a breakthrough presented by Pakuwon by combining Shopping Centers, Offices and residences in an area known for its Menteng Pulo cemetery, so that the Casablanca area is now becoming more alive and has become the business center of the Jabodetabek community, this is evidenced by the Diaspora event at Kota Kasablanka, which invited former President Barack Obama to be the speaker. This proves that the Casablanca area since the presence of Kota Kasablanka has become a center of community activity and is not only famous for its funerals.

Therefore, the authors see that in the midst of the New Normal Covid-19 era, the property industry sector has extraordinary gifts. This was driven by the policy of the Central Bank of Indonesia (Bank Indonesia) benchmark interest rate which continued to experience a downward trend and most recently stood at 3.75%. 

This is certainly a breath of fresh air for the property industry as well as consumers who will buy property in the middle of this New Normal era. In terms of industry, they have the opportunity to again increase their sales through digital platforms, so that the industry can reach a wider range of potential customers and get the momentum to again improve company performance with the increasing potential for residential sales in the era of reference interest rates, and the impact for the property industries they will able for run again development of the projects that have been planned by the industry. 

From the consumer side, they benefit from the financing side because consumers can apply for a mortgage with a lower interest rate along with the reduction in the reference interest rate so that consumers can increase their purchasing power of property that suits their needs. 

As well as from the point of view of national economic growth, the property industry which is again growing has a multiplier effect on the recovery of the property supporting industry, such as the furniture industry, the material industry (building), and so on. Which with the rise of these industries will increase state income through Gross Domestic Product (GDP) with the consumption made by property-related industries and by property-related industrial employees with the salaries they get from this sector.

In addition, the great potential for economic recovery through the property sector has been awaited through various project development plans by developers. For example, Bumi Serpong Damai (BSD), which plans to make BSD phase 3 on an area of approximately 2500 hectares to continue the plan to develop an independent city on an area of 6000 hectares. Also, for the Mass Rapid Transportation that planned to be passed near the BSD area. This will make the value of property in BSD will experience an upward trend in the long term and is very potential to be used as an investment asset.