Okay for home or investment<\/p>\n
Burhanuddin Abe, Contributor, Jakarta<\/p>\n
For some Indonesians, lifestyle has changed considerably,
\nincluding their preference for homes. For quite some years now,
\nliving in apartments is the ultimate choice.<\/p>\n
Just look at the skies of several major cities here,
\nespecially Jakarta, and you will find more and more skyscrapers
\nfilling the landscape.<\/p>\n
And, they are not only office buildings, but residential
\napartments. Even the neighboring towns, Bekasi and Tangerang, are
\nalso the proud locations of these new high-rise residences.
\nCurrently, 35 new apartment buildings are in development in
\nJakarta as well as its outskirts.<\/p>\n
The number of major developers are also growing in this
\nlucrative business, such as Artha Graha, Duta Pertiwi, Sumarecon
\nAgung, Agung Podomoro, Megapolitan, Gapuran Prima and many others
\nbesides. Naturally, the competition is becoming tougher in
\nproviding customers with as many plus points as possible, like
\ncomplete facilities, strategic location, tight security and the
\narchitectural aspect.<\/p>\n
According to data recorded by the Indonesian Center of
\nProperty Studies (PSPI), while the 1980-1998 period saw only the
\ndevelopment of 25,000 apartments, about 40,000 have entered the
\nmarket ever since. This is simply the answer to those who demand
\nefficient, modern and private homes, in or close to the center of
\nthe city, just like those who have been used to living in
\napartments in Hong Kong, Singapore, Malaysia and so forth. Their
\nreasons, though, may not be entirely similar to their
\ncounterparts in Indonesia.<\/p>\n
Like in the ownership of any product category, prestige being
\none reason behind the purchase, super modern, luxurious
\napartments are also selling well, for example, Bellagio, Da
\nVinci, Four Seasons, Casablanca, Radiance and SCBD Suites, just
\nto name a few that offer superior features.<\/p>\n
Panangian Simanungkalit, the property consultant of Panangian
\nConsulting Group, said that both the high-end and middle-class
\napartments are enjoying robust sales. The high-end apartments
\n(sold at approximately Rp 15 million or US$ 1,600 per square
\nmeter) are only 15 percent of the total, while those priced at
\nbetween Rp 4 million and Rp 7 million comprise 35 percent and the
\nrest cost less.<\/p>\n
Many developers, including their marketing agents and property
\nbrokers, are even enjoying a high rate of presales prior to the
\nreadiness of the luxury homes.<\/p>\n
The soaring sales can be illustrated by the following
\nexamples. Casablanca has sold 75 percent of its apartments, while
\nthe remaining units are leased as serviced apartments. Setiabudi
\nApartments, according to its sales agent Century 21, are almost
\nsold out, while Taman Rasuna Apartments, the pioneer of lower
\npriced apartments sold for between Rp 400 million and Rp 500
\nmillion per unit, has only 100 units left from its total 3,000.
\nThe largest number of the 3,000 have been sold and occupied by
\nthe owners, while a small percentage is rented.<\/p>\n
Bakrie Group, the developer of Taman Rasuna Apartments, plans
\nto add 450 apartments, which are near completion. The company
\nfeels optimistic about the future of apartments here, because,
\namong other reasons, people buy them for investment and business.
\n\"Just imagine the huge profit, as they buy it for Rp 400 million
\non a bank loan (a home-purchase-scheme) and they rent it out for
\nRp 7 million per month. The return is higher than putting your
\nmoney in a bank deposit,\" said one owner of Taman Rasuna.<\/p>\n
Will apartments replace hotels in certain aspects? Not
\naccording to Panangian Simanungkalit, who thinks they are not
\ndirectly comparable and each has its own plus points as well as
\nfunctions.<\/p>\n
While for long-term rent, like two or three months or longer,
\napartments prove to be more economical, as the amount paid for
\none month for a room in a star-rated hotel can get you a luxury
\napartment for three months. And, today, though five-star hotels
\ngenerally have state-of-the-art facilities, the luxury apartments
\ndo not lack them either.<\/p>\n
On the occupancy rate, apartments here are currently enjoying
\na higher level than hotels. The Statistics Office of Property and
\nReal Sector recorded that in February, 2004 the occupancy rate of
\nleased apartments was 76.34 percent, while that of star-rated
\nhotels in Jakarta and the surrounding cities (Bogor, Tangerang
\nand Bekasi) was 60.1 percent in the same month.<\/p>\n
Out of the star-rated hotels, only those with a three-star
\nrating enjoyed a slightly higher percentage, 70.3 percent. The
\nfour-star hotels had 63.3 percent, while the lowest percentage,
\n51.5 percent, belonged to the five-star ones. The figure
\nmentioned earlier, 60.1 percent, is the average occupancy rate of
\nstar-rated hotels.<\/p>\n
The office also recorded the average price of leasing an
\napartment in February was Rp 91,727 per square meter per month,
\nwhich has gone down by 10.9 percent from the previous month. The
\nsales price of strata-titled apartments, meanwhile, rose in
\nFebruary by 4.16 percent to Rp 7.3 million per square meter from
\nRp 6.9 million previously.<\/p>\n
The average room rate of a three-star hotel room is Rp 230,805
\nper night, while a four-star hotel room is Rp 329,938 and the
\nfive-star one is Rp 534,132. The increase of room rates at star-
\nrated hotels over the past few years is about 0.58 percent.<\/p>\n
Panangian Simanungkalit also said that there is no significant
\nincrease in the building of new hotels in the country.
\nDevelopers, according to him, seem to prefer to put their money
\nin more lucrative property sectors, such as apartment buildings
\nand huge trade centers, like those which are dubbed here as
\n\"international trade centers\". To them investments in hotels are
\nnot quick yielding as it takes eight or 10 years, or even more to
\nreap any profit. Comparatively, apartments take only three years
\nat the most.<\/p>",
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