Property Sector Prepares for The New Normal After Covid-19 Pandemic

JAKARTA - Executive Director of the Jakarta Property Institute (JPI) Wendy Haryanto said a number of adaptations will be made by property businesses as a result of the spread of Covid-19. "The property sector really needs a quick response," said Wendy in the JPI-School of Business and Management ITB collaboration webinar How Will We Shop and Work? on Friday, May 15, 2020.

In the short term, Wendy explained, business actors will apply for debt restructuring and interest on loans to banks. From the government, they will apply for tax relief. This step is taken to maintain business sustainability.

On the operational side, Wendy said a form of adaptation in the form of implementing more flexible building operating hours is also needed. The goal is to prevent too many people from gathering in a limited time and at the same time.

In the long run, according to Wendy, there will be an increasing need for automation systems to reduce physical touch and digital communication in companies. This is because people are used to working during the pandemic. "The follow-up effect is likely to be reduced demand for office space," she said.

From the retail side, said Wendy, additional logistics warehouse expansion needs will occur compared to the additional number of stores. This is because visits to stores will still be limited for at least the next three months. In addition, the increase in warehouse needs is directly proportional to the increase in online shopping.

Raden Aswin Rahadi, Assistant Professor at the School of Business and Management at the Bandung Institute of Technology, says adaptation is essential for the property business. This is because pandemics or crises have always been an unavoidable part of human life. The Spanish Flu, SARS, and Ebola pandemics are examples. "This will be an important integral part of the business cycle," he said.

Especially for Covid-19, said Aswin, the need for the business sector to adapt is getting higher. He explained that the Covid-19 pandemic is classified as a "Black Swan" phenomenon that is "Unknown Unknowns" because there is no detailed explanation of the conditions being faced. The level of uncertainty when the phenomenon occurs is very high and has critical consequences in the future. "In this case we will face "new normal" conditions after the PSBB period," said Aswin.

Director of PT Panasonic Homes Gobel Indonesia Wulang Widyatmoko said the company implemented a personal and digital marketing approach as a form of adaptation to the pandemic. Creative content such as Instagram Live and 3D Virtual Tour were created in preparation for The New Normal. "So that we can still penetrate people who mostly work from home," he said.

Another challenge, said Wulang, is the SAVASA project located in Deltamas, Cikarang, West Java. The project, which will begin handing over its first unit, has made the property company, a collaboration between Panasonic Homes in Japan and Gobel International, communicate more intensively between Jakarta and Japan. "Our challenge is for the company to run well and still follow government regulations," said Wulang.

Jones Lang LaSalle Head of Property and Asset Management Naomi Patadungan said The New Normal lifestyle will be implemented in high-rise buildings. The use of masks and body temperature checks at health posts will become standard. Not only that, physical distancing will also still apply when using elevators, toilets, queue buildings, and seating arrangements in dining areas. The number of people in meeting rooms and large gathering spaces will also be limited. "Tenants are expected to get used to online meetings and training and limit receiving outside guests for the time being," he said.

Naomi said that changes in standards and lifestyles also apply when shopping centers resume operations. Visits to shopping centers will only be to fulfill the purchase of necessary items. The window shopping activity of visitors will decrease. Visitors who come to shopping centers will also be more limited to the age of 15-45 years old to maintain health and hygiene, and maintain endurance.

Another procedure, Naomi explained, applies to display products. The store will restrict shoppers from touching the products except by using disposable gloves. Parking card collection is also expected to use an automated system. "The Shopping Center is temporarily no longer a meeting point and gathering place, until conditions return to normal," she said.

The use of shared facilities within the shopping center will also be restricted by the building manager. That's why, says Naomi, queues at lobby toilets and elevators are likely to occur. The worship area will still be disabled until there is a change in the government's policy on assembly.