Apartment living catching on slowly

Rudijanto, Contributor, Jakarta

Living in apartment is still a luxury for most people but for a young and dynamic executive such as Elina Ciptadi who is expected to come to the office early and return home late, an apartment is the only solution.

Aside from enabling her to go quickly to and from the office, her rented lodgings are near including shopping mall, restaurants and cafe.

Elina says she feels safe in her apartment and does not worry about leaving it for several days because of the good security system provided by the management. She would be worried if she left a normal house empty for several days, she said.

"I don't need to open the gate by myself if I come home late in the middle of night."

Elina is a young executive who feels perfectly at home living in a Jakarta apartment rather than choosing to buy a two-story house in Tangerang or somewhere the outskirts of Jakarta where she can afford.

While apartment living offers more conveniences, not all Indonesians can either afford or want to live in high rise accommodation.

"No, I can't imagine living in a tall concrete block surrounded by other tall buildings. I want a house where I can still can see green trees and hear bird song in the morning," says Andi Priyantoko, a writer for a Jakarta-based magazine.

Another young executive, Dewi Suryani, who works in Jakarta's central business district, admits that if given a choice she would rather live in a house. She currently lives with her parents in an apartment close to Jakarta's Taman Anggrek Mall.

"An apartment offers convenience. For instance, if I want to eat, I just go to the food court in the mall. But I don't have much privacy in the apartment because the size of our unit is very small. If somebody yells from one corner, I can hear it from the other," Dewi says.

Colliers International research manager Ferry Salanto confirms that most Indonesians still prefer to live on the ground in houses rather than in apartments. However, the main problem developers face is not getting people to live in apartments but convincing them to buy them, particularly as an investment, he says.

"With a surplus in supply on the market and the fact that most Indonesians typically prefer to live in houses, developers often find it difficult to sell apartments if they are targeting an end-user."

Selling apartments these days usually meant offering them as an investment alternative, he says.

"Buying an apartment is a long-term investment. And it's important to note that compared to houses, apartments give a better return," he said.

However, he says living in apartments has also gradually become an acceptable lifestyle option, and this is also a selling point. Many people preferred apartments because of their proximity to downtown areas, integrated support facilities and well-managed security systems.

"Given limited land in the city that results in escalating land prices, high-rise development is the solution." The situation in Jakarta could end up being very much like the one in Singapore, Ferry said.

Property consultant Panangian Simanungkalit agrees.

"The desire to live in apartments has increased among city dwellers who want to escape the heavy traffic and to enjoy a secure, comfortable life with guaranteed privacy," said Panangian as quoted by Sinar Harapan.

PT Procon Indah marketing officer Gita Maharani Koroh says developers often conduct promotions to encourage people to choose an apartment instead of houses.

However, living in an apartment does require changes in one's way of life, Gita says. Although there is normally a community center in every apartment, the day-to-day interaction is not as much as in housing complexes.

"After living in an apartment for some time, what I miss the most is eating satay, porridge or noodles, or buying drinking ice or vegetables, all from the street vendors that used to pass by my old house," says Elina.

Many Indonesians also shy away from purchasing apartments because they worry about the risks.

"If I own a house and it collapses because of a strong earthquake at least the land is still mine. But If I have an apartment unit that collapses, can I still own the land?" Andi wondered.

However, as traffic becomes increasingly unbearable and new areas for housing development become farther away from offices and other workplaces, many Indonesians are preparing to change.

But for many others the high price of apartments makes it impossible for them to even contemplate it.

Ferry advised people who were thinking about buying apartments to check the apartment's documents, including the Right to Build Title, Land Certificate and the Right to Use A Building certificate, and to be aware of who the financing bank was.

People should know what they were getting into, he said. "We must avoid developers who use down payments from purchasers to construct their apartments because often the building is affected or even stops if sales do not reach certain target."

A developer's reputation, the location, facilities, the apartment's management and the cost of living should all be taken into account, he says.

Ferry says the apartment industry in Jakarta has great potential to grow. However, whether it becomes acceptable depends on the benefits offered, not on mere promises, he says.