Agung Podomoro Land Tbk (APLN) and Ciputra Development Tbk (CTRA) will amass profits from property projects in Batam following the price increase to 11.3% in a year, higher than the average property price rise in Indonesia of 3.4% in a year.
Franky Rivan, Analyst at Daewoo Securities Indonesia, predicts the price to reach IDR 3-4 million per m2. The main reason for the upsurge is the distance between Batam and Singapore.
APLN has a landbank of 40 ha at Orchard Park, Batam. With the assumption of land price rise by 11.3% yoy and IDR 3 million per m2, APLN may potentially record a price rise worth IDR 135 billion by 2017.
CTRA has two joint venture projects in Batam, namely CitraLand Megah Batam and Citra Aerolink with a land of 17 ha and 500 ha respectively. Considering the prediction and 50:50 of JV, CTRA will record IDR 876 billion by 2017.
In the first trading session on Wednesday (5/10), APLN dropped 2% to IDR 292 while CTRA fell 3.4% to IDR 1.585. (*)
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