Property Remains a Relevant Investment: The Perspective of Sinar Mas Land's Digital Business CEO, Mulyawan Gani

Amidst global economic dynamics impacting various industrial sectors, property remains a relevant and valuable investment instrument. This was revealed byMulyawan Gani, CEO of Digital Business Sinar Mas Land, in his discussion at Issuer Talk.

According to Gani, property ownership is not just a financial matter, but also involves emotional, social, and sustainability aspects. "Personally,aha moment"It's in the house I own, not in the hotel I stay in," he said. Property, he continued, holds sentimental value because it's where life's moments are created: raising children, caring for parents, and building family stories.

Young Generation and Property Trends

One interesting phenomenon is the increasing interest of the younger generation in home ownership. Internal data from Sinar Mas Land shows that the averagethe age of first home buyers is now at 33–34 years, younger than a decade ago when the average was 40 years.

According to Gani, this demonstrates that while the younger generation is known to prefer flexibility and renting, property ownership remains important. However, their consumption patterns are different: they prefer more compact homes, strategic locations close to public transportation, and environments with complete amenities.

"Yes, the houses may be small, but they like the ecosystem—there's a free bus feeder, there's green space, and it's close to the train station. So, the property's relevance remains strong as long as it meets consumer needs," he explained.

Market Segments and Challenges

The property industry is closely linked to market segmentation. According to Gani,middle-up segmentThe areas where Sinar Mas Land operates still show healthy demand. However, challenges arise from the lower-middle class, which is often caught between financial constraints and pressing housing needs.

To address these dynamics, Sinar Mas Land relies on a diversified portfolio: housing, apartments, industrial estates, golf courses, and hotels. This diversification provides a strength in resiliently facing the risk of oversupply in certain sectors, such as apartments.

Property as a Long-Term Investment

For Gani, investing in property has an irreplaceable sustainability dimension. Homeownership encourages financial discipline through installment obligations, which ultimately shapesafety netfor the future.

"The question is, if we live to be 100, are we sure we can continue paying the rent? If we own a house, it becomes an asset and can even be inherited. So, a legacy is created," he said.

The Role of Government: Regulation and Incentives

Gani also emphasized the importance of government support, particularly in simplifying regulations and providing incentives. He believes overlapping regulations often pose obstacles for developers.

"We need a government that's pro-business but still protects consumer interests. If regulations are clear and secure, we can focus more on innovation," he said.

Fiscal incentives such as BPHTB relief and licensing facilitation are also said to be able to encourage demand and support the development of new areas.

Innovation and the Future of Smart Cities

Sinar Mas Land is also committed to presenting innovation, especially in BSD City which is being developed asliving lab for smart city concept. Starting from pilotless bus trials, digital ecosystem development, to the construction of green and environmentally friendly areas.

"We always think from the consumer's perspective. What they want, what's relevant. Because what we're building isn't just housing, but cities that will thrive for the next 30–50 years," Gani concluded.

Check out the full podcast video:

Segment 1: https://youtu.be/YBM9FZXjUbg

Segment 2: https://youtu.be/8PjbA4oDFeY

Segment 3: https://youtu.be/Az-5oRDH0qc