Of these 17 listed companies only nine posted growing sales in the first quarter of 2017, while only six managed to record growing net profit. It is a strong indication that the property sector of Indonesia is yet to show a significant recovery. This is confirmed by weaker-than-estimated marketing sales. In the first quarter of the year, only 17 percent of total estimated (full-year) marketing sales were realized.

Read more: Analysis of the Property Sector of Indonesia

The only company that posted significantly improving corporate earnings was Modernland Realty, with a 54.5 percent (y/y) jump in revenue and a staggering 262.9 percent (y/y) increase in net profit in Q1-2017.

According to NH Korindo Sekuritas the bleak corporate earnings of Indonesian property developers so far this year is the result of consumers preferring to buy existing houses (in contrast to the new houses that are delivered by the developers) as prices of the older houses are more competitive.

This trend is not expected to change before the end of the year and therefore we may not see an improvement in earnings of Indonesian property developers in 2017. While Indonesians' consumer purchasing power has been improving in line with the country's accelerated macroeconomic growth, most consumers are not ready to purchase (costly) property yet. Rather, they focus on other basic needs such as food.

Selection of Listed Property & Industrial Estate Companies:

Sales Growth
Net Profit Growth
Metropolitan Land     -5.69%          0.00%
Lippo Cikarang    -18.13%        -17.04%
Modernland Realty    +54.34%       +262.90%
Alam Sutera Realty    -16.73%        -66.73%
Summarecon Agung    +17.50%       +157.14%
Puradelta Lestari    -62.24%        -54.78%
Pakuwon Jati    +10.60%        -35.91%
Bekasi Fajar Industrial Estate    +0.54%        -33.06%
Cowell Development     -4.44%        -95.24%
Megapolitan Developments    +14.29%         +6.67%
Jaya Real Property     +2.23%         +5.35%
Kawasan Industri Jababeka    +21.47%        -59.26%
MNC Land     +5.98%        -99.76%
Metropolitan Kentjana     -6.35%       +11.03%
PP Properti    +6.32%        +1.11%
Lippo Karawaci     -2.50%        -54.02%
Intiland Development    -32.26%        -80.20%
Total    -0.63%

Various sources