The pandemic that entered Indonesia since March 2020 had a major impact on the national economy, including the property sector, which contracted quite deeply. This is because the purchasing power of all groups of people is disturbed and decreased. Since the pandemic, people have preferred to spend their money on Fast Moving items such as food, drinks and medicines. As for investment products, including property, the public prefers a wait-and-see attitude.
The attitude of the community makes property oversupply because developers do not stop building, while purchases tend to stagnate. So that the property price index in the last three quarters fell. However, property is still the prima donna in terms of investment products during this pandemic compared to gold, stocks and other investments. This is because property has asset values that will continue to increase in the future without experiencing much fluctuation and relatively low risk.
Based on data from the Investment Coordinating Board (BKPM), the realization of investment in Q1/2021 was IDR 219.7 trillion, an increase of 4.3% compared to Q1/2020 or year-on-year (yoy). The housing and industrial estate sector is one of the five main business sectors that recorded the highest investment realization of IDR 29.4 trillion (13.4%) in Q1/2021.
Therefore, innovation is needed by developers for their products and marketing systems so that the performance of this sector is maintained. Because, if conditions do not improve and the developers do not innovate, many developers, especially the lower middle scale, will face developer natural selection.
In terms of marketing, innovation is not just taking advantage of digital services so that buyers and sellers do not need to meet face-to-face, but also provides relief and facilities in terms of transacting through collaboration with banks. Currently, many developers, especially for the residential sector, are starting to hand over units to consumers to provide lots of discounts and promos.