...Weak 2Q Presales Expected: Fitch Ratings expects aggregate presales of the 12 Indonesian developers tracked by the agency to fall by around 40% yoy in 2Q20, following a 19% drop in 1Q20. The government's large-scale social distancing measures since late-March led developers to close their offices and showroom units, leading to deferrals of most project launches and also weaker demand. Amid this backdrop, presales rose yoy at PT Alam Sutera Realty Tbk (ASRI; B-/Rating Watch Negative) and PT Lippo Karawaci Tbk (LPKR; B-/Negative), supported by online project launchings. ASRI's sales grew the most, driven by strong take-up on two new shop-house projects in its Alam Sutera township. LPKR's sales were led by its Waterfront Estates in Lippo Cikarang, targeting the middle-income segment with an average selling price of IDR1.2 billion per unit. Slow Industrial Land Demand: Fitch expects demand for industrial land to remain weak in 2020 as investor sentiment is likely to remain soft amid the coronavirus...
