Campuses the bait for Yogya's real estate boom
By Anis Suryani
YOGYAKARTA (JP): Scan local newspapers and the advertisements appear to indicate that the property business, laid low by the economic crisis, is on the mend.
Pages are filled with ads for housing and real estate complexes, following years when their promotion was reduced to a trickle.
Yogyakarta is currently marketing more than 25 housing complexes with a total of over 3,000 units, 40 percent of which are already sold. Some of the complexes are new but others are the result of development projects put on hold during the crisis.
Griya Indah housing complex, which is being developed by the Damai Putra Group, is the continuation of a previous project, now at the seventh stage of its development. The sector consists of only eight units, ranging in area from 160 square meters to 250 square meters. Prices start at Rp 329 million per unit.
Local developers say that the property business's reemergence in the city was due to banks' willingness to give housing loans. Although the interest rate for such a credit facility is still high -- about 18 percent a year with a maximum period of 10 years -- it has been effective in attracting more buyers, mostly for middle range houses.
Seeing the opportunity, developers are building and marketing houses of between 45 square meters, with the selling price of about Rp 60 million per unit, and 70 square meters with a price of about Rp 150 million.
According to the director of PT Kaltim Ciptayasa Pitoyo Waluyo, developers were answering the market's needs.
"For the moment, no developers are daring to market simple type houses because there are not yet banks offering credit to buy such types of housing," he said.
Other developers are finding their niche in luxury housing.
One of them is Damai Putra, which is currently marketing Tirta Sani Real Estate on Jl. Godean. The complex only offers houses with an area ranging from 160 square meters to 240 square meters, with prices ranging from Rp 370 million to Rp 600 million per unit.
Like other elite complexes, Tirta Sani also offers some additional facilities, including a clubhouse, fitness center, swimming pool, jogging track and tennis court. So far, 60 of the 127 units marketed have been sold.
Campuses
Yogyakarta is known as a college town, and the development of housing complexes is mostly in line with the presence of campuses.
Newcomers to the area with family members studying at the campuses are the main target market. It is also why properties developed near campuses have a higher selling value.
One area considered prime property is Jl. Kaliurang in the northern part of the city where a number of new campuses, including the integrated campus of the Indonesian Islamic University (UII), are located.
Perwita Karya, which is currently developing Griya Perwita Wisata I, for example, is ready to market another 200 units of various type. Perwita Karya's president director Frananto Hidayat says most of the sold units are already occupied. Another nearby complex, Saka Permai, developed by PT Saka Yasa Paramarta, has also sold 80 of the 105 units it is developing.
In the eastern part of the city where noted campuses of the UPN Veteran University, STIE YKPN, Atmajaya University and the Emmanuel Christian University are found, a number of housing complexes are also being developed. They include Griya Candi Sari, Taman Krajan, Perum Candi Indah and Gejayan Baru.
In the southern and western parts of Yogyakarta, where there are the campuses of the Indonesian Institute of the Arts (ISI) Yogyakarta, Yogyakarta Muhammadiyah University and Wangsa Manggala University, there are Kalirandu Selaras, Pelem Sewu, Griya Alvita, Griya Gejawan Indah and Mitra Griya Asri complexes.
Pitoyo Waluyo said sales usually increased up to 60 percent immediately ahead of, or during, the new academic year.
Yet, he said, a smart strategy was also needed to successfully market the houses and maintain the business.
"During the crisis about three years ago, sales did indeed decline. Yet, we could still sell some of our projects. It's probably because of the strategy we apply," said Pitoyo.
Kaltim Ciptayasa is a relative newcomer to the city. The company is based in Bontang, East Kalimantan. In its hometown, the company has developed no less than 420 houses, all of which were sold.
As Bontang was considered no longer able to accommodate new housing complexes, Kaltim Ciptayasa decided to test its fortune outside the region. It chose Yogyakarta and Malang because it considered that they showed a similar potential market with consumers in the education sector.
He said he was careful in marketing his projects. Although there were many banks offering credit, he was not reckless in using the facility. The company also did not proceed with construction of units until there were confirmed buyers.
"Right after they pay the downpayment, no matter how much, I finance the construction of the house for them. They are also free to decide both the design and the sum of the installment based on their own financial capability," said Pitoyo.
The firm exempts buyers from paying interest should they finish paying the installment within a year. If they need more than a year to pay, the interest is applied to the outstanding portion of the installment.
"We apply a family-like relationship in running the business," Pitoyo said.