A sure sign of the health of a property market in any country of the world is when the property conglomerates in that country come out of the starting gates flying, and that is exactly what an Indonesian property company has done in 2008.
PT Ciputra Property, a company based in the Indonesian capital of Jakarta, is a company that has set some lofty goals for 2008. For example, Ciputra is projecting revenues for the year to reach 750 million rupees (approximately $80 million). When one considers that their revenues were 269 million rupees in 2006 and 280 million rupees in 2007, that goal is definitely one that fits into the lofty category.
What is driving the confidence that the company seems to be showing? A gradually strengthening property market in Indonesia is primarily the reason for their increased confidence. In fact, the property market has become strong enough that they feel comfortable enough invest seven trillion rupees (approximately $750 million) into a gigantic property project in Jakarta that will include commercial, residential and hospitality modules.
In addition to that, they are also planning stock offerings in Singapore and Hong Kong in 2008 in the hope of getting more investors. According to a senior official with the company, the stock offerings will be combined with additional units of real estate income trust being made available to foreign investors interested in acquiring property in Indonesia.
With all of these projects being pursued by the company, only an increasingly healthy Indonesian market is the cause. Recent surges in property values and increasing foreign interest in the country’s property market as a response to conventional markets losing ground have created a positive upswing in market conditions in the archipelago nation, and with beautiful beaches, great weather and a strong tourism industry, Ciputra promises not to be the only company that will expand operations within Indonesia in 2008.
