Sahid Group Eyes Southeast Asia to Expand Business
RAPID growth of economy in Southeast Asia becomes an appeal for Indonesian real-estate developers to expand in the region. Among the favorite countries are Vietnam, Cambodia, and Myanmar.
Sahid Group, who owns hotel chains in Indonesia, is considering the property market in Vietnam, China, Cambodia, Myanmar, and Malaysia.
According to Sahid Group Vice President Hariyadi Sukamdani as qouted from bisnis.com said we plan to expand abroad next year, mainly in Southeast Asea. This year, we still focus in domestic market.
He sees that the chance of property industry and Vietnam and Cambodia is still wide because land price in both countries is relative low while they have rapid economic growth. Such condition makes high profit margin for a developer to get.
Moreover, Myanmar offers similar promising condition since the country has recently opened itself to democracy, which is predicted to welcome foreign investors.
Hariyadi predicted that those countries will keep developing in the next 20 years, saying that this is the right time for developers to enter the property market there.
Some areas in Malaysia, including Johor Baru and Kuala Lumpur suburbs, and in Brunei Darussalam are in our target list. We plan to develop properties in the form of hotels and commercial buildings,” he revealed.
At the same time, Corporate Secretary Tulus Santosa said that another developer Ciputra Group has been penetrating in Asia since 2005. The company will build ground houses on 300-hectare land in Hanoi, Vietnam, 200-hectare land in Phnom Penh, Kamboja, and 300-hectare land in Shenyang, China.
“We focus more on ground houses in Asia, because commercial property has more complex market prediction,” said Tulus.
There are some factors developers should consider before expanding abroad, said Hasan Pamudji, senior research manager at property consultant Knight Frank Indonesia.
The first factor is political situation of the countries that may influence the risk and benefit of foreign investors. Second, the government regulation also becomes a consideration.
“Developers must consider economy factor of the country, including banking system, interest rate, and regulation on housing loan,” he explained. [photo special]