Leased apartments expect more guests this year<\/p>\n
With the improvement in business sentiment, the demand for
\nleased and serviced apartments in Jakarta is likely to continue
\nto revive this year.<\/p>\n
New demand is expected to come from the increase in the number
\nof short-term business visitors and expatriates working for
\nmultinational companies in the capital.<\/p>\n
\"Inquiries for leased and serviced apartments are expected to
\nincrease in South Jakarta in line with the concentration of the
\nnew business area on Jl. Simatupang,\" property consultant
\nColliers International Indonesia said in its quarterly research
\nreport.<\/p>\n
The property consultant predicts that existing and newly built
\noffices in the Jl. Simatupang area will generate fresh demand for
\nleased apartments as most of the occupants are multinational
\ncompanies involved in oil and gas, mining, telecommunications and
\nconsumer goods.<\/p>\n
With its close proximity to a number of international schools
\nsuch as the Jakarta International School, Singapore International
\nSchool and the Netherlands International School, as well as
\nsupporting facilities such as shopping centers and hospitals, the
\nSimatupang area might be an attractive alternative for those
\nlooking for apartments.<\/p>\n
Another property consultant, Procon, also sees promising
\ndemand for leased and serviced apartments in Jakarta this year.<\/p>\n
Like Colliers, Procon also believes a projected increase in
\nthe supply from new serviced apartment projects and from the
\nconversion of strata-titled apartments into leased apartments
\nwill make the competition among operators even fiercer, despite
\nthe expected higher demand.<\/p>\n
According to Procon, the occupancy rate will consequently drop
\ndue to the high supply but lease rates will most probably
\nincrease on the impact of the expected increase in fuel prices.<\/p>\n
Procon estimates that serviced apartments will continue to be
\nan attractive accommodation option for long-term visitors because
\nthey offer the same quality of service and facilities provided by
\nfive-star hotels at lower rates.<\/p>\n
On the supply side, Colliers reported that the supply in the
\nrental apartment market increased by 2 percent in 2004 to about
\n6,280 units. About 56 percent of these units are managed as
\nleased apartments while the remainder are operated as purely
\nserviced apartments.<\/p>\n
Of the total supply, about 45 percent are located within the
\ncentral business district (CBD) around Jl. Thamrin and Jl.
\nSudirman in Central Jakarta and Kuningan, South Jakarta.<\/p>\n
According to Colliers, as a long-term investment, leased
\napartments are not as popular as strata-titled apartments because
\nthere are only 1,038 potential leased and serviced apartments
\nscheduled to enter the market between 2005 and 2007.<\/p>\n
Similar to the situation experienced by the strata-titled
\napartment market, 2006 will be a peak period for the leased
\napartment supply.<\/p>\n
\"2006 supply is around 75 percent of the annual supply in 1998
\nwhen the highest annual supply was recorded,\" Colliers said.<\/p>\n
Of the 1,038 units of leased apartments coming into the market
\nin the next three years, serviced apartments will dominate the
\nsupply, with 995 units.<\/p>\n
About rental rates, Colliers estimates there will be an
\nincrease of between 5 percent and 7 percent within the next 12
\nmonths due to the expected increase in fuel prices.<\/p>\n
In general, rental rates of leased and serviced apartments
\nduring 2004 were stable. The average monthly rental rate for
\nmiddle-class and up apartments was about Rp 117,800 ($US12.70)
\nper square meter with an additional service charge of Rp 29,300
\nper square meter a month. For luxury apartments like The
\nDharmawangsa Residence in Kebayoran, South Jakarta, units were
\noffered at Rp 165,000 per square meter a month, plus a monthly
\nservice charge of Rp 14,940 per square meter.<\/p>\n
Serviced apartments naturally charge higher rates and charge
\nin US dollars. The asking gross rent of selected apartments
\nwithin the CBD area was about $19.90 per square meter a month,
\nwhile several developments outside the CBD were offered at $11.40
\nper square meter a month. -- The Jakarta Post<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/leased-apartments-expect-more-guests-this-year-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}