More apartment units enter the market<\/p>\n
Business optimism remains strong in Jakarta's strata-titled
\napartment market, stimulating the development of new projects
\nduring the past three months.<\/p>\n
Colliers International Indonesia (CII) property consulting
\ncompany reported that there were an additional supply of 3,534
\nunits during the second quarter of this year.<\/p>\n
The additional supplies came mostly from new Airlangga,
\nMediterania Gajah Mada, Sudirman Mansion and SCBD Suite apartment
\nbuildings.<\/p>\n
The additional stocks have brought cumulative supply to reach
\n35,904 units in the April-June period, an increase of 11 percent
\ncompared to the first quarter of this year.<\/p>\n
In its Quarterly Research Report, Colliers said that six new
\nprojects with total units of 2,865 were introduced during the
\nsecond quarter.<\/p>\n
\"Together with the existing projects, the above units will
\nincrease total Jakarta apartment supply to 67,864 in 2007. When
\nthe above future projects meet their schedule, the apartment
\nmarket will grow by 26 percent in the 2005-2007 period,\" it said.<\/p>\n
In the future, middle class apartments will lead the market
\nwith supply composition of 41 percent for middle to upper income
\ngroups and 26.7 percent for middle to low.<\/p>\n
The Central Business District (CBD) area continued to be the
\nlargest provider, with 25.7 percent of the total existing supply.
\nIn term of project numbers, the CBD was also the most preferable
\nlocation for apartment development with a total of 27 projects
\nout of 101 developments in total.<\/p>\n
\"However, with the bulk of the units expected to enter the
\nmarket in 2007, North Jakarta is predicted to substitute CBD as
\nthe largest unit provider with total of 24 projects.\"<\/p>\n
Second home<\/p>\n
Besides investment, CII also observed that cost and time
\nconsideration has also fueled apartment demand. Some buyers were
\ninterested in buying apartment units based on their proximity to
\nthe workplace and as second home.<\/p>\n
Demand for apartments located in CBD area or adjacent to
\ncommercial spots were considered high mostly for small type such
\nas one and two bedroom. Casablanca Mansion, Sudirman Park and The
\nPeak apartments were examples of projects under construction that
\nrecorded a good absorption rate of above 80 percent.<\/p>\n
According CII, the existing strata-titled apartment units
\nenjoyed 74 percent occupancy in the second quarter of this year,
\nleaving 9,335 units unoccupied.<\/p>\n
The current under construction developments, on the other
\nhand, achieved 67 percent take-up rate. \"Anticipating double
\nsupply entering the market in 2006, Jakarta apartment take-up
\nrate is predicted to decrease to between 68 percent and 70
\npercent.<\/p>\n
Price<\/p>\n
Competition between new apartment units and secondary units
\nfrom the existing developments was quite tight during the second
\nquarter.<\/p>\n
Furthermore, secondary units could offer lower prices with
\nmodern fully furnished facilities which were better compared to
\ntheir original specifications, CII said.<\/p>\n
Apartment prices ranged from the lowest of Rp 5.5 million per
\nsquare meter to the highest of Rp 26.7 million per sq m. On
\naverage price was quoted around Rp 12 million per sq m. In the
\nluxury class, Four Season Residence and Oakwood Premier Cozmo
\ncommanded higher prices with published price of above Rp 25
\nmillion per sq m. -- The Jakarta Post<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/more-apartment-units-enter-the-market-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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