Property Market Prospective in Makassar

The property and recreation market in Makassar is growing rapidly as the national economy is developing also. (IST)

JAKARTA (IFT) - The property market in Makassar, South Sulawesi, is considered quite prospective. Andi Anzhar Cakra Wijaya, President Director of PT Gowa Makassar Tourism Development Tbk (GMTD) said that in general, there are no constraints that would significantly affect the company's operations and earnings throughout 2010.

"The property and recreation market in Makassar is growing rapidly as the national economy is developing also," he said.

According to Andi, there have been changes in the world’s economic map, from west to east due to the flow of investments that are now coming from the Asia-Oceania regions, led by China.

"The eastern part of Indonesia now has more strategic positions than western regions. If the government can take full advantage of this strategic position, the eastern region will grow rapidly," he said.

This year, the company is building several large projects and support facilities for the development area of Tanjung Bunga, Makassar, South Sulawesi. The projects include the Siloam Hospital, Water Boom, Sea World and Kidszona.

In 2010, the company achieved a revenue growth of 87 percent, compared to the previous year – from Rp 63 billion (US$ 7.37 million) to Rp 118 billion. The growth primarily came from the sale of residential homes and lands amounting to Rp 113 billion or 95 percent of the company’s total revenue last year.

Tri Laksono, Director of PT Gowa Makassar Tourism Development Tbk, said that the new international recreation area in the area of Tanjung Bunga will be a giant aquarium. The theme park is scheduled to operate by early 2012. The construction of Sea World will be integrated with Waterboom, with an estimated investment of Rp 150 billion.

IFT Research Department assessed that the development of tourist facilities is an appropriate strategy because it has the potential to increase revenues. This condition is supported by the increased mobility of people coming to Makassar. The number of air passengers that went through the Hassanudin Airport reached 2.3 million people from January-December 2010. People who come to Makassar via sea transportation totaled to 387 people.

Land Prices

Indonesia Property Study Centre (PSPI) noted that the development of property projects – residential, shopping centers and shops, will continue to grow in Makassar who ranked third in terms of growth after Jakarta and Surabaya.

"In the last five years, Makassar’s average growth in the property sector reached 25 percent per year," said property analyst, Panangian Simanungkalit.

With the completion of the Sultan Hasanuddin International Airport, Makassar’s growth in the property and infrastructure sectors are rapid. This will solidify the city’s position as the center of economic growth in eastern Indonesia.

According to Panangian, with a population of only one million people, Makassar’s growing property sector is phenomenal. Land prices in the middle of the city has reached Rp 8 million per square meter.