DYNAMIC PROPERTY MARKET IN TANGERANG, LPKR TARGETS FIRST-TIME AND PREMIUM HOME BUYERS

18/08/22

Jakarta, August 18, 2022 — According to the Rumah.com Indonesia Property Market Index (RIPMI), house price indices have increased by 10% over the past three years, with the sharpest growth occurring in the Greater Jakarta (Jabodetabek) region—particularly in Tangerang Regency. Property prices in Tangerang Regency have surged by 24.5%, significantly higher than South Tangerang (11.5%), Bogor Regency (8.5%), and Depok (7.5%).

According to Marine Novita, Country Manager of Rumah.com, the rising prices are driven by high-demand areas that have become top choices for home seekers. “In addition, home prices continue to increase due to factors such as inflation, limited land availability, growing population, and rising construction material costs,” she added.

To capture this market opportunity, PT Lippo Karawaci Tbk. (LPKR) has been launching the Cendana Homes Series in Lippo Village since 2020. These quality landed home clusters are designed for first-time homeowners and offer strategic access to key locations such as the Jakarta–Merak toll gate, Hypermart Cyberpark, Supermal Karawaci, Pelita Harapan University, and Siloam Hospitals Karawaci, all reachable within 10 minutes.

LPKR CEO John Riady stated that during each unit selection event for Cendana Homes clusters, all units have consistently sold out. In addition to targeting first-time buyers, LPKR is also entering the premium market with its Brava cluster, located in a prime area of Lippo Village. The first phase, Brava @ Himalaya, priced at around IDR 4.1 billion per unit, received an enthusiastic response during its launch. The success of Brava @ Himalaya demonstrates LPKR’s capability to expand market penetration.

“The property business is showing signs of recovery, reflected in the rising pre-sales of both Cendana and Brava clusters in Lippo Village. As Indonesia gradually recovers and activities return to normal, we’re confident that macroeconomic conditions will continue to support our business growth in 2022,” John added.

As of the first half of 2022, LPKR recorded pre-sales of IDR 2.485 trillion, a 7% increase YoY from IDR 2.331 trillion in H1 2021. Lippo Village contributed the largest share—45.4% or IDR 1.084 trillion—of LPKR’s total pre-sales during this period.

LPKR reaffirms its pre-sales target of IDR 5.2 trillion for the full year of 2022, and to achieve this, the company will implement various strategies, including:

  • launching more affordable residential products for first-time homeowners,

  • introducing premium residential units and shophouses,

  • expanding the market through mid-rise apartments, and

  • stimulating demand for ready-to-move-in high-rise units.

“We are pleased with the progress we’ve made so far in 2022. We reaffirm our pre-sales target of IDR 5.2 trillion this year. LPKR remains committed to delivering high-quality housing to meet strong demand from first-time homebuyers—even as we diversify our product offerings,” John concluded.

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