Apartment market surges after suffering decline<\/p>\n
JAKARTA (JP): More middle-class people are choosing to live in
\nhigh-rise residential buildings, kick-starting the apartment
\nmarket in the capital again after a tough time with the economic
\ndownturn.<\/p>\n
Apartments are a relatively new concept here. It was not until
\nthe late 1980s that the city started to see the development of
\nhigh-rise apartment buildings.<\/p>\n
At that time, expatriates were the main target for developers,
\nbut then they realized that more locals were interested in
\npurchasing apartments. There was also a time when locals were
\nbuying apartments not for living in, but rather as investments.<\/p>\n
The development of apartments has also encouraged more
\noverseas companies to operate here.<\/p>\n
In particular, they are running serviced apartments. These
\ncompanies include the Accor Asia Pacific, Ascott, Aston, Alsson,
\nFour-Seasons Regent and Kempinski.<\/p>\n
Most of some 70 condominiums in the capital, though, are
\ndeveloped and operated by local companies.<\/p>\n
The general manager of the Kempinski Hotel Plaza Jakarta,
\nMichael Price, said the future of serviced apartments in
\nIndonesia looked promising as busy executives were seeking
\nconvenience.<\/p>\n
\"This is something that serviced apartments do offer,\" he
\nsaid.<\/p>\n
Kempinski runs both the apartments and hotel, which is located
\nin the same building within the Mid-Plaza complex.<\/p>\n
\"This provides additional convenience to the tenants who have
\naccess to all of the hotel's facilities and services while still
\nhaving their private entrance through the apartments' lobby,\"
\nsaid Price.<\/p>\n
He added that the Kempinski had maintained an average of 100
\npercent occupancy.<\/p>\n
\"As Indonesia is on its way to recovery, we expect to see more
\nbusiness activities, in the short and long term. Serviced
\napartments provide the answer to all requirements, and service
\nand facilities are maintained.\"<\/p>\n
Sharing the opinion, Oswald Pichler of the world-class hotel
\nmanagement company Accor Asia-Pacific said that there had been a
\nstronger demand in serviced apartments.<\/p>\n
\"The properties operated by Accor are serviced apartments, and
\nwe have seen a good increase,\" he said.<\/p>\n
Competition<\/p>\n
Pichler said that the market would remain competitive as each
\napartment always tried to offer everything.<\/p>\n
Accor operates several apartments under the names of Mercure
\nand Ibis in Jakarta and Surabaya, in addition to over 20 hotels
\nin various cities across Indonesia.<\/p>\n
There are many things to consider when living in an apartment.
\nPeople usually want convenience, privacy, security, a central
\nlocation, easy access and facilities.<\/p>\n
The price or rate as well as the developer and management are
\nalso important elements in this consideration.<\/p>\n
As most properties are tastefully furnished and decorated,
\nwhat are the advantages of serviced apartments managed by foreign
\ncompanies?<\/p>\n
Sales manager of PT Dewata Wibawa, the developer of Four-
\nSeasons Regent Residences, Sudiwati Atailah, said that her
\napartment had the exclusivity to use the Four-Seasons Regent
\nbrand for a certain period based on a signed contract.<\/p>\n
\"The apartments must then meet any standards set by the Four-
\nSeasons. This leads to our specific, premium target market,\" she
\nsaid.<\/p>\n
Property manager of PT Jakarta Setiabudi Property, the owner
\nof Kuningan Apartments, Bambang Mursalin, said that the property
\nwas locally self-managed.<\/p>\n
\"Serviced apartments managed by foreign firms are direct
\ncompetitors for us. I believe they also advertise their
\nproperties in Indonesia in their marketing network. Experience is
\nlikely their competitive advantage as well.\"<\/p>\n
\"Remember that some serviced apartments in Jakarta also take
\nin tenants on a daily basis, meaning that they operate like
\nhotels. Thus, foreign chains, which have an international
\npromotion network, will use this measure,\" he said.<\/p>\n
Conditions may be different for Executive Menteng Apartment,
\nwhich is managed by a Jakarta-based company, PT Jakarta Land
\nManagement.<\/p>\n
Menteng Apartments' general manager for marketing Veri Y.
\nSetiady said the target market was more domestic and that his
\ncompany did not need to run overseas marketing offices.<\/p>\n
Separate<\/p>\n
Companies managing serviced apartments can be separated as
\nthose that only maintain the common areas like the swimming pool,
\nelevators, electricity, parking lot, the tower and other
\nfacilities, which may have a health club, sauna and whirlpool,
\nswimming pool, tennis court, squash court and a children's
\nplayground, and those which extend services to the tenants.<\/p>\n
When a company only maintains the common areas, services to
\ntenants will be handled by the developer of the apartments.<\/p>\n
Services usually include housekeeping services, cleaning and a
\nfresh supply of bath towels and bed linen, water and electricity,
\nplus cutlery, crockery, glasses, cooking utensils and serving
\ndishes as well as other amenities.<\/p>\n
For example, the tenants of Executive Menteng Apartments enjoy
\na host of the above facilities.<\/p>\n
\"For this, I think we're quite competitive compared to the
\ninternational chains. Our employees are also experienced in
\nstar-rated hospitality,\" said Veri.<\/p>\n
It is helpful for prospective residents to learn more about
\nthe management and service providers when selecting an apartment.<\/p>\n
They must also be keen in studying everything related to
\nmanagement and services, particularly the monthly service charges
\nor maintenance fees.<\/p>\n
After you move into an apartment, the tenants' association
\n(Perhimpunan Penghuni) in any apartment building will be helpful
\nin formulating the proper monthly service charges or maintenance
\nfees and selecting a building management company.<\/p>\n
A tenants' association is required of any apartment developer
\nafter a two-year operation period, based on Apartment Law No.
\n16\/1985, Provincial Regulation No. 1\/1991 and Government
\nRegulation No. 4\/1988. (I. Christianto)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/apartment-market-surges-after-suffering-decline-1447893297",
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