Return of expatriates helps boost apartment sales<\/p>\n
Grace Emilia
\nContributor
\nJakarta<\/p>\n
After a more than four-year slump, the apartment sector is
\nshowing signs of life again thanks to the return of expatriates,
\naccording to property consultant Koll IPAC.<\/p>\n
Lynnette Johnson, an expatriate coordinator of the property
\nconsultant's relocation services, says the increase in the number
\nof expatriates in Jakarta has had a positive impact on the
\nIndonesian apartment business.<\/p>\n
\"Though we are told that there are 40 percent less work
\npermits issued for expatriates compared to the precrisis era, our
\nestimate is that the current number of expatriates is 20 percent
\nhigher than the same period last year,\" Johnson said in a recent
\ninterview.<\/p>\n
A notable increase is seen in those working in the oil and gas
\nindustry. These people, who come to Indonesia to work both on
\nshort-term and long-term contracts will usually look for an
\napartment or house to rent.<\/p>\n
Those coming for a short stay of between one to twelve months,
\noften look for fully-serviced apartments, whilst those staying
\nlonger and those with families usually prefer a condominium or
\nrented house, he said.<\/p>\n
There are two kinds of apartments -- the leased apartment
\nwhich is fully serviced and the strata-titled one, usually called
\nthe condominium type, the units of which are usually privately
\nowned and rented out again to other parties.<\/p>\n
The fully-serviced apartment tends to be more restrictive in
\namount of payment, while the condominium type is more negotiable<\/p>\n
\"One problem in selling an apartment is that people compare
\nthe prices of the fully-serviced apartments with those of the
\nunserviced ones. In serviced-apartments like ours, we provide
\neverything -- TV, gas, electricity, kitchen sets and in certain
\nunits even an aquarium and its fish,\" said Cheah Hooi Theng, the
\ngeneral manager of The Allson Residence.<\/p>\n
According to Johnson, prices for a condominium depends on a
\nvariety of factors. Sometimes the landlord may need quick money
\nand therefore rents it out cheaply. If the unit has special
\nfurniture that makes it more expensive than other units of the
\nsame size or number of rooms.<\/p>\n
He said the overall pricing of apartments in Jakarta was
\nsimilar to those in Malaysia and Thailand, but higher than those
\nin Australia.<\/p>\n
\"Low-end apartment' rental rates are usually between US$500 to
\n$1,000 per month, while the mid-end is around $1,500 to 2,500 per
\nmonth. The high-end apartments are between $3,000 to 4,500 per
\nmonth.\" said Johnson adding that the high-end apartments have an
\noccupancy rate of between 90 percent to 100 percent.\" He believes
\nthat the unit's large space is one reason for the high demand for
\nthe high-end apartments.<\/p>\n
\"We have sold 92 percent of our 234 condominiums since we
\nfirst opened in late 1998. The unit's selling price is between
\n$250,000 and $450,000 per unit. Usually the landlord rents it out
\nagain with prices ranging between $2,800 to $2,900 per month for
\nan unfurnished unit and about $3,200 for a fully furnished one.\"
\nsaid Sudiwati Atailah, sales manager of Four Seasons Regent
\nResidences.<\/p>\n
Meanwhile, Aston Hotel Jakarta which also sells condominium
\nand serviced-apartments is enjoying good returns mostly from its
\nserviced-apartment type. \"With prices ranging from $1,600 to
\n$1,800 per month, we currently have 60 percent occupancy for our
\nserviced-apartment type as the market demand for condominiums is
\nnot that high yet.\" said Sentot Lasiyanto, marketing analyst
\nmanager of Aston Hotel.<\/p>\n
According to the latest data (up to March 2002) issued by Bank
\nIndonesia in its commercial property survey carried out in
\nJakarta, Bogor, Tangerang and Bekasi, the average occupancy rate
\nof leased apartments in the first three months of 2002 was 94.3
\npercent, a slight decrease from 95.4 percent in the last three
\nmonths of 2001. However, the average leasing rate increased quite
\nsignificantly from Rp 103,561 per square meter per month at the
\nend of 2001 to Rp 111,970 per sq meter per month in March 2002.<\/p>\n
At the same time, the selling rate of the strata-titled
\napartment was 84.9 percent with an average selling price of
\naround Rp 6.48 million per sq meter. On an annual basis, the
\noverall selling price showed a 20.7 percent increase compared to
\nthe same period last year.<\/p>\n
Though business looks good, Cheah Hooi Theng says that the
\nlevel of overall confidence is still weak compared to before the
\neconomic crisis.<\/p>\n
\"Before the crisis, people used to pay two years in advance.
\nCurrently they only dare to pay in advance on a monthly or
\nquarterly basis.\"<\/p>\n
He added even if the contract was for one year, they are only
\nwilling to pay six months in advance though the rate for long-
\nterm payment is 20 percent to 30 percent lower.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/return-of-expatriates-helps-boost-apartment-sales-1447899208",
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