Experts see rising trend in apartments<\/p>\n
If a home is in a quiet neighborhood, surrounded by lush
\ngardens, with a 24-hour security system, parking place and is
\nclose to the place of work, it is likely to be taken immediately.<\/p>\n
A lake covered in large lotus buds of myriad hues nearby has
\nnever done anybody any harm either.<\/p>\n
Large teakwood trees providing protection from the heat of the
\nsun and rain are welcome, too, and it is precisely for this
\nreason that Jakarta is known as the last paradise on earth
\nwhich people from around the world feel they must experience
\nbefore it is turned completely to steel and stone.<\/p>\n
Thousands of expatriates and Indonesians are already living in
\nJakarta and if they are here either as singles or parents, there
\nis no accommodation more secure and comfortable than an
\napartment.<\/p>\n
Of course, a 25 meter lap pool helps as do courts for various
\nsports, a children's playground and a day care on the premises
\nwith lots of shade and space for children to play in safety.<\/p>\n
But for some developers, all these facilities are not enough
\nso they have provided residential complexes built by them with a
\nmini market, dry cleaners, restaurant and maid services, too.<\/p>\n
If you happen to find an apartment at South Jakarta's Bona
\nVista Apartments, a panoramic view of the mountains from three
\nsides of one of the tallest towers in the area comes free of
\ncharge along with all the leisure programs offered at the
\nInternational Community and Activities Center (ICAC), located
\nnext door.<\/p>\n
\"Many of the above facilities are no longer considered a
\nbonus. They are taken for granted and provided at most apartment
\nbuildings that cater mostly to the expatriate community,\" says
\nVera Esther, the sales manager at Bumimas Hilltop Apartments.<\/p>\n
The prime districts remain the residential areas of Menteng
\nand the southern parts, such as Kebayoran Baru, Simprug, Permata
\nHijau, Kemang and Pondok Indah.<\/p>\n
Many an adventurous expatriate has taken up residence in a
\ncrowded kampong area beside local homes in a bid to get a more
\nauthentic feel of life in Jakarta, but newcomers and the reserved
\nmostly prefer to live within the luxury and privacy of serviced
\napartments, which offer a lifestyle that is halfway between life
\nback home in the economically advanced world, and here in the
\nstill developing world of the exotic tropics.<\/p>\n
After a lull of about two years, the need for apartments in
\nthe city is picking up.<\/p>\n
Leasing activity continues to be dominated by expatriates as
\nsome industries have been increasing the number of people
\nemployed by them, such as at foreign banks, insurance agencies,
\nbusiness service companies, information technology firms and some
\nmanufacturing companies.<\/p>\n
Before the economic crisis spoiled it all, apartment
\nconstruction had continued recklessly without much thought to
\ndemand.<\/p>\n
There were far too many apartments in the city before the
\neconomic crisis put an end to all the construction activity.<\/p>\n
\"What we are trying to do now is to market the apartments we
\nhad built two years ago,\" says Deden Sudarbo, head of Procon
\nIndah\/Jones Lang LaSalle, the world's leading real estate service
\nand investment management firm operating across 100 key markets
\nin 35 countries on five continents.<\/p>\n
From the 60 percent of the expatriate community that packed up
\nits bags and left Jakarta two years ago, half of that number is
\nnow returning.<\/p>\n
\"Since the expatriates are back, our job now is to provide
\nthem with accommodation where they feel safe and happy,\" said
\nDina Patiasina, the residential director at Colliers Jardine.<\/p>\n
While it is younger Indonesians between the age group of 25
\nyears and 45 years who are looking for apartments to buy,
\nexpatriates rent a residence either for a short or longer period
\nof time.<\/p>\n
Most luxury apartments are built for the benefit of the city's
\ntwo percent indigenous population that belongs to the upper
\nincome group and its large community of foreign experts on
\nassignment here at an office or on the large premises of the
\nnumerous international schools here.<\/p>\n
Expatriates are employed mostly by multinational companies
\nthat are prepared to pay a handsome rent for a serviced
\napartment.<\/p>\n
\"We are close to embassies and offices and have employed over
\n120 security guards that are on duty 24 hours a day. The
\napartments are equipped with closed circuit television cameras
\nand residents can monitor guests on the television,\" says Veri Y.
\nSetiady, the general manager of marketing at Executive Menteng
\nApartment.<\/p>\n
The Central Business District (CBD) and prime residential
\nareas remain the most preferred locations, while secondary areas
\nwith good accessibility to the toll road are also being
\nconsidered, particularly by expatriates working at an industrial
\nestate.<\/p>\n
Since May 1998, many projects lost tenants. Given the
\ncontinuing uncertainty, those who have returned seem to prefer to
\nsign a shorter lease term of perhaps six months compared to the
\nprevious market practice of leasing for no less than two to three
\nyears.<\/p>\n
On the other hand, several projects retained a high occupancy
\nlevel even during the economic downturn, especially those that
\noffered a more flexible lease term and relatively more
\ncompetitive rental rates.<\/p>\n
Some rental apartment projects with superior features and good
\naccessibility have maintained their captive market and enjoyed
\nhigh occupancy levels throughout the economic and political
\nuncertainties, and also because many tenants swapped individual
\nhomes for an apartment.<\/p>\n
In less turbulent times, most families with pets and children
\nchose to live in the privacy of a sprawling home located in the
\nsouthern part of the city with a garden and staff that usually
\noutnumbered members of the family.<\/p>\n
To accommodate the demands of some of these families Veri told
\nThe Jakarta Post that at Executive Menteng Apartment they are
\nprepared to work out a compromise about allowing pets into the
\ncomplex.<\/p>\n
Most apartment buildings in Jakarta do not allow pets as a
\nrule, mainly out of consideration for other guests.<\/p>\n
Cheah, the general manager at Allson Residence, feels that
\nliving in an apartment building means being able to share the
\ncommon area property without offending other residents.<\/p>\n
He feels pets may present a problem as some residents could
\nobject to the noise or lack of hygiene brought about by pets.<\/p>\n
Cheah is quick to remind that the Allson Residence is an
\nexecutive service apartment known for maintaining a certain
\nstandard.<\/p>\n
It prides itself upon being \"fully\" serviced in the sense that
\nthere are no hidden charges asked of residents as electricity,
\nwater, maintenance are included in the rent.<\/p>\n
Cheah feels strongly about providing more housing for the
\nlower-income group and would like to see more low-cost apartments
\nbuilt in the city.<\/p>\n
But he also says that residents have to first educate
\nthemselves about living in an apartment as the facilities
\nprovided have to be shared among people from different countries
\nand backgrounds.<\/p>\n
Procon Indah\/Jones Lang LaSalle predicts in a survey that
\noffice rentals will remain flat in Jakarta, but retail rental
\ngrowth will continue to accelerate.<\/p>\n
Condominium prices are likely to increase while the price of
\nindustrial land will remain under pressure.<\/p>\n
As corporate loans remain unavailable, the future supply will
\nprimarily come from self-financed office projects, renovated
\nretail projects covered by insurance and pre-sold condominium
\nprojects.<\/p>\n
Several postponed retail projects are likely to resume
\nconstruction in the short term given the strong demand level and
\nincreasing rentals.<\/p>\n
While the average rental of an apartment has been flat, the
\nrental of a quality prime apartment is likely to increase
\nslightly due to the relatively stronger demand in this submarket.<\/p>\n
The price of a CBD condominium has already increased slightly
\nwhile the prices of condominiums in prime residential locations
\nremain relatively stagnant.<\/p>\n
Therefore, when it comes to deciding where to live, only the
\nsky seems to be the limit here in Jakarta. (Mehru Jaffer)<\/p>",
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"sponsor": "Okusi Associates",
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