Apartment business expected to blossom
JAKARTA (JP): Aldo Putra Brasali, the director of the Brasali Group, a property company, said yesterday that housing business prospects in Indonesia will not fare as bad as earlier predicted as the demand for property, especially housing, will keep strong.
Aldo said that the demand for housing and shopping centers will keep increasing, while the demand for office space and five- star hotels will decrease.
"The present national economic growth of six percent has created a demand for 120,000 houses this year. I am sure the economic growth will increase while the demand for apartments, as an alternative to houses, will rise automatically," he said
Aldo said prospects for the high-rise property business is bright because the government is now preparing a housing regulation which allows foreigners to buy apartments.
"The regulation will create a second boom in the apartment building business," he said.
The Brasali group is the owner of luxurious apartments in Jakarta, including Park Royale on Jl. Jend. Sudirman, Le Crystal apartments on Jl. Terogong, South Jakarta, and Golf Hill Terace in Pondok Indah area.
The group is now constructing two other apartments, Batavia City on Jl. K.H. Mas Mansyur, Central Jakarta and Pangeran Jayakarta Palace Condominium on Jl. Pangeran Jayakarta, West Jakarta.
Aldo said that the Batavia City will have two towers. Each tower will have 34 floors and 308 units.
He said all of the 308 units in the first tower have been sold and 80 percent of the second tower has also been sold.
The prices of the units in Batavia City apartment range from $58,800 for a studio apartment to $442,000 for a penthouse.
The construction of Batavia City will start in Jan. 1995 and will be completed in Mar. 1997.
Aldo said Pangeran Jayakarta Palace Condominium will have 24 floors and 172 units and 65 percent of it have already been sold.
The prices of the units in Pangeran Jayakarta Palace Condominium range from $49,900 for a studio apartment to $109,000 for a penthouse.
The construction of Pangeran Jayakarta Palace Condominium started in September 1994 and is expected to be completed in 1996.
Aldo said that the total investment in the construction of the Batavia City two apartment towers is US$75 million, while for the Pangeran Jayakarta Palace apartments it is $18.5 million.
He also said that the construction of Batavia City and Pangeran Jayakarta Palace Condominium is 60 percent financed by offshore loans from Japanese banks such as Tokai, Mitsui and Sakura Bank, while the remaining 40 percent is being acquired from the group's equity.(mas)