Middle class apartment market seen promising<\/p>\n
JAKARTA (JP): A developer said it would build more apartments
\nfor the middle class as it was a rapidly growing market.<\/p>\n
Sarkoro Handajani, marketing director of the Putra Surya
\nPerkasa group (PSP), said on Monday the company would survey how
\nmany middle class people would actually want to live in
\napartments.<\/p>\n
He said the market within the monthly income group of Rp 1.5
\nmillion (US$619.6) to Rp 5 million was growing up to 6 percent a
\nyear in Greater Jakarta.<\/p>\n
\"There are around one million families in this group now,\"
\nSarkoro said.<\/p>\n
Now there is an oversupply of upper class apartments, he said,
\nbut middle class ones are still in great demand.<\/p>\n
City officials have cited a need for middle class apartments,
\nbut prices offered by developers are higher than the city hoped.
\nDevelopers have said land price is their main obstacle.<\/p>\n
Last year city secretary Prawoto S. Danoemihardjo said there
\nwas a great need for 30-square-meter apartments priced from Rp 30
\nmillion. The city is still finding it difficult to subsidize 50
\npercent of the apartments priced at Rp 26 million for resettled
\nslum dwellers.<\/p>\n
Meanwhile PSP representatives said their apartments, priced
\nfrom Rp 88.7 million, were selling well. Sarkoro said the
\nrelatively cheap prices were because the apartment building was
\nin a PSP housing complex, Taman Vila Meruya, where facilities
\nalready existed.<\/p>\n
Besides buying apartments to live in, people were also
\nconfident about the increased resale value, another marketing
\nmanager said.<\/p>\n
Also on Sunday, the developer of the Taman Rasuna apartments,
\nwhich are priced from Rp 184 million and claimed by the developer
\nto be affordable, claimed it would sell its remaining 20 percent
\nof 953 completed apartments in a short time.<\/p>\n
As an incentive for private developers, Governor Surjadi
\nSoedirdja issued an instruction to make building permits for
\ncheap apartments easier to obtain.<\/p>\n
Technical director Jimmy Sutedjo said he did not know of
\nincentives, but permits were relatively easier to get since
\nSurjadi's appeal.<\/p>\n
An information officer at PSP said almost 50 percent of the
\nyet to be built 380 Permata Meruya Apartments in Kembangan, West
\nJakarta, had been sold since April 1. Many families had put their
\nnames down for two 48-square-meter two-bedroom apartments priced
\nfrom Rp 88.7 million, he said.<\/p>\n
Older couples mostly opt for the 96-square-meter three-bedroom
\napartments, priced from Rp 164.2 million. Most of the apartments
\nwould have two bedrooms, as the target market was executives with
\nsmall families. Higher priced apartments would be on the 19th
\nfloor, at Rp 214 million. Free parking would be available for 402
\ncars.<\/p>\n
A tender for contractors is to be held soon before
\nconstruction begins in May, technical director Jimmy said.<\/p>\n
Marketing manager Budi Hamidjaja said around 60 percent of the
\nproject funds were derived from the PSP group and the remainder
\nfrom consumers' advanced payments.<\/p>\n
The Permata Meruya was the seventh apartment project of the
\ngroup. Budi said other apartment buildings were under
\nconstruction, including Permata Surya in Cengkareng, West
\nJakarta.<\/p>\n
Permata Surya apartments were priced from Rp 37.5 million but
\ndid not include free parking lots.<\/p>\n
Meanwhile PSP's marketing director Sarkoro said the company's
\nsurvey found price was still the most important factor in the
\ndecision to buy an apartment.<\/p>\n
\"The second is location, the third is the developer and the
\nfourth is the apartment's surroundings,\" he said. (anr)<\/p>",
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"sponsor": "Okusi Associates",
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