Time for the long-awaited upswing
Key Takeaways:
▪️ The government has officially announced the extension of their value added tax incentive program (PPN DTP). For home purchases up to IDR5bn the VAT incentive will still be given, but to the limit of IDR2bn purchases.
▪️ Furthermore, hotel industry’s performance is expected to recover by 2Q24. This is due to the seasonal slowdown at the start of the year, especially ahead of the elections.
▪️ The narration that the economy is on-track to recovery, coupled with a limited supply of new malls and the hiking number of visitors put the occupancy rate at 72.8% and 70.4% in Jakarta and Greater Jakarta region, respectively.
▪️ We give a Overweight rating for the property sector. The valuation is based on an average NAV discount ~55%-70%. BSDE, CTRA and SMRA are our top picks, as they will benefit from the incentive program due to its high product mix <IDR5bn per unit.
Disclaimer On
