Sunday\/Page -5\/<\/p>\n
Serviced apartment remain favorite choice for short-term visitors<\/p>\n
Rudijanto
\nContributor
\nThe Jakarta Post<\/p>\n
Equipped with semi-hotel and sometimes full-hotel services and
\namenities, serviced apartments remain the favorite choice for
\nthose seeking cozy living environment during their brief stay in
\nJakarta.<\/p>\n
Occupied mostly by expatriates, the occupancy rate of serviced
\napartment depends on the influx of foreigners, especially those
\nwith deep pockets or strong financial backing.<\/p>\n
This is so, since the US$2,000-US$3,000 monthly rental rate of
\nserviced apartments is between 7 percent and 10 percent higher
\nthan that of non-serviced apartments.<\/p>\n
The services provided are generally similar to those provided
\nby star-rated hotels, both in terms of facilities and quality.
\nThis is the main reason why the rates of serviced apartments --
\nwhich may also provide breakfast, cleaning and other enticements
\n-- are higher.<\/p>\n
Generally run by international hotel chains, Jakarta serviced
\napartments include, among others, Four Seasons, Plaza Senayan,
\nPlaza Residence, Hilton Residence, Puri Casablanca, Ascott,
\nPavilion Park, Permata Hijau and Aston.<\/p>\n
Colliers International's Manager for Residential Property
\nAleviery Akbar reveals that the number of serviced apartment is
\nnot more than 20 percent of all the apartments in Jakarta.<\/p>\n
The occupancy rate of serviced apartment is usually high due
\nto their limited number. This explains why the occupancy rates of
\nmost serviced apartment remains relatively high, despite the
\nsharp drop in occupancy rates of the country's non-serviced
\napartment and hotels.<\/p>\n
\"We don't see any new serviced apartments coming on the
\nmarket, even for next year,\" said Soany Gunawan, Colliers'
\nManager for Research & Consultancy.<\/p>\n
Colliers observed that up to the second quarter of this year,
\nthe average occupancy rates for serviced apartments increased
\nslightly to 65.2 percent. But for particularly \"sought after\"
\napartments the rate could reach as high as 85 percent.<\/p>\n
\"This is still lower than performances in the pre-crisis
\nperiod in 1997, when the occupancy rate was above 85 percent,\"
\nsaid Soany.<\/p>\n
The average rental rate of serviced apartments in U.S. dollars
\nup to the second quarter, remained the same as the last quarter's
\nfigures. Data from PT Procon Indah -- another Jakarta-based
\nproperty consultant -- shows that rentals in rupiah of serviced
\napartments decreased over the second quarter due to the
\nstrengthening of rupiah against the U.S. dollar by 7.5 percent.<\/p>\n
Similar to non-serviced rental apartments, the improvement of
\nserviced apartment's rental rates will continue to rely on the
\nlevel of Foreign Direct Investment (FDI) in Indonesia.<\/p>\n
With the anticipated weak investment level, Procon believes
\nthat rentals will continue to remain flat.<\/p>\n
Like hotel and entertainment sectors, the serviced apartment
\nmarket is highly influenced by political and economic factors and
\nthe peace-and-order of the country.<\/p>\n
\"Terrorist attacks, threats to foreign people and Aceh war as
\nwell as unstable political and security conditions in Indonesia
\nhave negatively impacted the rental apartment market in Jakarta
\nas this market relies on the temporary visit or stay of
\nexpatriates and foreign visitors,\" said Richard Rossiter,
\nColliers's Managing Director for Indonesia.<\/p>\n
Strata apartment sales<\/p>\n
If Jakarta's serviced apartment and rental apartment market
\nremains tied up with the political, economic and security
\nsituation, the strata-title apartment market remains promising,
\nat least according to sales data up to this year's second
\nquarter.<\/p>\n
High risk always entails high gain - that is perhaps the
\nwidely held belief that serves as the driving force to keep
\nJakarta's strata-title apartment market blooming.<\/p>\n
While most expatriates think of apartment as comfort zones or
\n\"home away from homes\", well-to-do Indonesians think of
\napartments more in terms of alternative and, perhaps, more
\nprofitable investments.<\/p>\n
Anxious to find better investment alternatives, many rich
\nIndonesians have opted to purchase strata-title apartments. Prior
\nto the JW Marriott blast, the market for apartments and town
\nhouses had been climbing.<\/p>\n
Last month's JW Marriott blast leaves the whole nation in
\nwaiting for another possible attack. The alleged suicide bombing
\nthat devastated JW Marriott hotel lobby and killed around 10
\npeople and injured many others has opened the eyes of many that
\nBali bomb was not the last. No one dares to speculate that JW
\nMarriott blast should be the last one either.<\/p>\n
Procon reveals that the sales and net take up of strata-title
\napartments and townhouses in the second quarter of 2003 jumped to
\n320 units. This figure comprised of 311 strata-title apartment
\nunits and 9 strata-title townhouse units. Such a figure was 74
\npercent higher than that of the last quarter.<\/p>\n
It was also significantly higher than the figure in the same
\nperiod last year, which recorded net take up of only 84 units.<\/p>\n
Generally, property consultants forecast that market
\nabsorption for new apartment projects is still high.<\/p>\n
PT KOLL IPAC, another Jakarta-based property consultant also
\nbelieves that there is a renewed confidence in the apartment
\nmarket.<\/p>\n
\"This is in line with the high occupancy rates for luxury
\nunits, and reflected by a number of high end apartment projects
\nbeing launched and marketed as strata-title with a total of 1,737
\nunits being offered,\" said Ipung Rachmaningtyas, KOLL's Manager
\nfor Research & Consulting Division.<\/p>\n
Colliers observed that instead of investing in US dollar or
\nbank deposits, many Indonesians now prefer to put their money
\ninto the property sector.<\/p>\n
\"Strengthening of the rupiah, lower inflation, lower bank
\ninterest rates and the improvement in overall investment climate
\nhave made strata-title apartments one of the more attractive
\ninvestment options,\" said Soany of Colliers.<\/p>\n
But all of those encouraging developments in the apartment
\nmarket had occurred prior to the JW Marriott hotel blast. The
\ncurrent optimism of some property consultants is based on the
\ncountry's seemingly quick recovery from the damages caused by
\nlast year's Bali bomb.<\/p>\n
\"We do not yet have research results of the impact of the JW
\nMarriott blast. Perhaps, there were declines in the number of
\ninquiries a week or two weeks after the blast. But we do not have
\nthe data and we cannot reveal something that is not based on our
\nresearch,\" said Dharmesti Sindhunatha, Procon's Senior Manager
\nMarketing and Communication.<\/p>\n
Based on the encouraging results of the second quarter, most
\nconsultants still look optimistically at the market. \"The impact
\nof JW Marriott was less significant than expected as several
\ntransactions resumed for residential leasing,\" Ipung said.<\/p>\n
\"Of course, there were cancellations immediately after the
\nblast but when the people see the situation is returning to
\nnormal, they push through with the transactions,\" said Aleviery.<\/p>\n
Colliers even issued an optimistic report earlier this month
\nwith the title \"Jakarta Residential Market Starts Blooming.\" The
\nreport shows that Jakarta is on the road to recovery, as
\nillustrated by the growing number of apartment buildings being
\nerected here.<\/p>\n
In spite of this welcome optimism, possible terrorists' attack
\nstill constitutes a serious threat to the nation's economy. With
\nnext year's presidential elections not far away, Jakarta's
\napartment sector -- particularly the more vulnerable serviced
\napartment and rental apartment market -- has legitimate reasons
\nto worry.<\/p>\n
While the strata-title market will always find risk-taking
\nbuyers wanting to earn more profits, serviced and rental
\napartment sub sectors can only hope for the best.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sundaypage-5-1447899208",
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