Jan 10, 2011

Bakrieland eyeing Rp1.95 sales

Property developer PT Bakrieland Development Tbk (ELTY) has set a 30%-50% sales hike on housings and apartment this this year.
Hiramsyah Sambudhy Thaib, Bakrieland President Director and CEO, said the company booked Rp1.3 trillion sales last year. It expects the sales might reach Rp1.7 trillion-Rp1.95 trillion. 
He is optimistic Bakrieland could reach the target, in line with the surge demand for the property products every year. The company recorded a 30% growth in 2010 from the previous year.
"We estimate that the property sector might be booming as several reasons," he said last week in Institut Teknologi Bandung.
According to him, several indicators underpinning the property sector such economic and micro sector growth as have improved.
Adding to that, many who don't have houses might boost property sales in 2011. He said the growth in property sector in 2011 is estimated to lift up housing prices by 20%-30% this year compared to last year.
"Despite higher price, still property sector could be risen, supported by robust purchasing power," he said.
To develop business, Bakrieland has expanded to all segments from low to middle-upper. However, the middle class segment has a wider opportunity to increase.
"As the big chunk in the middle class segment, many property developers enter the same market segment," Hiramsyah said.
The company plans to spend Rp2 trillion-Rp2.5 trillion to develop business this year, 2 folds from Rp1 trillion-Rp1.5 trillion last year.

Disclosure: No position at the stock mentioned above.  

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