Apartment business on the rise
Apartment business on the rise
Golo Riwu Contributor Jakarta
The worst effects of the country's economic crisis are gradually receding. In Jakarta's business sector and in other major Indonesian cities, apartment construction and sale is in full force after a deep lull. An abundance of apartments is advertised, both those existing and those under construction. Almost everyday five-star apartments and their not as luxurious counterparts are splashed across the media.
Each developer offers their product with a cleverly designed promotional theme. Menteng Apartments, for example, offers "A New Concept of Five-Star Living" by depicting an array of world-class deluxe facilities in its advertisements. Likewise, the Garden Wing apartments, belonging to the established Hotel Borobudur, have been heavily promoting their "excellent service."
Nowadays more and more city dwellers are becoming interested in living in apartments. Some of the reasons behind this growing interest are strategic locations -- right in the heart of the city -- and modern facilities, similar to those available at five-star hotels. Executives and those on the move prefer apartments to luxurious houses, mainly due to the accessibility offered by apartments. Energy and time is not wasted by driving to work, they say.
The apartment business is growing faster than ever before in this country and throughout the world the trend is even stronger. Surveys conducted by the European Hotel Association indicate that the growth between 1994 and 2002 is 30 percent annually.
In Indonesia, growth in this sector has been hampered by economic factors that other countries may not have had to battle with. Development of apartments in most major cities in the world is phenomenal.
According to Jasmina Janik, director of sales and marketing at Hotel Borobudur Jakarta, similar growth is also starting to take place in Indonesia. With the country's economy gradually recovering, the number of residents choosing to live in apartments will certainly increase as they embrace a lifestyle that is both convenient and pleasurable. Foreign investors are pouring money into the lucrative business of apartments, hence increasing the country's revenue.
The huge population of Indonesia's major cities is one of the reasons behind the construction of sky-high apartments. Hotel Hilton, Kempinsky hotel and Setiabudi International Apartments, for example, are well established in the apartment business and spreading their wings further to construct apartments in other large cities in Indonesia.
For expatriate managers and top-ranking executives staying in Indonesia for a short period -- between three and six months or even a year -- the rates offered by apartments are much more economical than paying for a room in star-rated hotels.
Compared to Singapore, Kuala Lumpur or even Shanghai, the development of the apartment business in Indonesia is relatively slow. Some observers say that the country has a negative image about its security, which is one of the main contributors to the slow growth rate.
Janik said that security is of the utmost importance to apartment tenants and apartments in Singapore and Malaysia have some of the world's best security systems. This contributes to the comparatively high growth of apartments in the two countries.
Other important aspects of apartment management are high professionalism, efficient management, quality service, beautiful design and, of no less importance, smart advertising and creative PR concepts.
To achieve international standards of service, Janik added, it is not just customer service staff that need to be trained. Each employee in every division should be given extensive training. This enables staff to cater to the high demands of expatriates and locals.
Ultra-modern facilities combined with excellent service are the name of the game. Apartments should be the ultimate home for tenants. "Pamper them and give them more than they expect," one marketer of apartments commented on how to win customers in the heat of competition.
Advertisements do make impressive promises, but the experience of tenants, right from the very first second, is the only "sales pitch" that counts. The ensuing word-of-mouth is better than any other form of advertising. The sales success of major developers who rely on this formula shows that the apartment business in Indonesia really is on a sharp rise.