City-owned firm builds modest apartments

JAKARTA (JP): Another middle class apartment building for young married couples has been put on the market by PT Saranawisesa Properindo, a joint venture between Wijayawisesa Group and city-owned property company PD Sarana Jaya.

Tebet Park Residence is located in Tebet in South Jakarta and consists of four towers, two of 26 floors and the others of 24 floors.

Director of the company Randolph S.Y. Bubu said he is optimistic the apartments will be sold out soon because the market target are young married couples with a combined income of at least Rp 5 million per month (US$2,192).

He explained that although compared to other apartment complexes the location is a little farther from the business center districts, it is not the only thing desired by customers.

"They are also looking for privacy. They are more comfortable with a smaller complex consisting of only 800 units," said Randolph.

The sizes of the apartments range from 83 to 115 square-meters and the price tag is Rp 2 million per square-meter. The construction of the project is worth Rp 185 billion, of which 40 percent was financed by PD Sarana Jaya and the remaining 60 percent by Wijayawisesa Group.

Prospects in Indonesia's middle class apartment business are projected to remain bright over the next two to three years due to the rising number of wealthy young married couples with monthly incomes of around Rp 5 million.

Earlier research of Colliers Jardine Indonesia has revealed that over 40,000 wealthy couples are interested in buying apartments located near their offices. (yns)