The property unit of Ciputra Group is aiming to triple sales this year as it starts selling plots in new projects, even as an analyst warns price rises this year are unlikely to top those in 2011.
Artadinata Djangkar, a director of Ciputra Property, said on Wednesday that the company is seeking to achieve marketing sales of Rp 1.5 trillion ($167 million) this year. Marketing sales refers to properties that have been purchased but the funds from them have not been recorded in the company’s books.
“The property market was at its best last year and I believe it will continue this year,” Artadinata said. “Besides the good market condition, we are also confident about our newest projects,” he said.
He said that in January alone, Ciputra World 2, a project located in Kuningan business district, brought in Rp 227 billion in marketing sales, equivalent to 15 percent of the total target this year.
CW2 will feature condominiums, a hotel and an office tower. The project began in January and is expected to be completed by 2014.
Another of the company’s ventures, Ciputra World 1, encompasses 5.5 hectares on Jalan Prof. Dr. Satrio in Kuningan, and has business, residential and retail spaces.
Its mall and office tower are expected to open by the end of this year, said Christy Grassela, director for investor relations at Ciputra Property.
The entire 77,000 square-meter mall has been leased to Lotte Department Store for 20 years.
Property analysts said the property market could grow this year amid fears of rising inflation due to a planned increase in the subsidized fuel price from April.
“Ciputra has the right to be optimistic on the back of their very large supply,” said Budhy Siallagan, property sector analyst with eTrading Securities. “There will be good growth this year, just not as big as last year.”
Artadinata said Ciputra Property expects its net income to rise to Rp 223 billion this year from Rp 158 billion last year and revenue to jump to Rp 902 billion this year from Rp 440 billion last year.
Ciputra Property plans to spend Rp 1.81 trillion on capital expenditure this year.
It will spend Rp 1.38 trillion to develop CW1, and around Rp 215 billion to finance the development of CW2. The remainder will be spent to renovate projects in Jakarta and Semarang, Artadinata said. The company also plans to build six budget hotels at a total estimated cost of Rp 115 billion.
Shares in Ciputra Property rose 1.5 percent to Rp 660 on Wednesday, bringing gains this year to 35 percent.