Experts see rising trend in apartments
Experts see rising trend in apartments
If a home is in a quiet neighborhood, surrounded by lush gardens, with a 24-hour security system, parking place and is close to the place of work, it is likely to be taken immediately.
A lake covered in large lotus buds of myriad hues nearby has never done anybody any harm either.
Large teakwood trees providing protection from the heat of the sun and rain are welcome, too, and it is precisely for this reason that Jakarta is known as the last paradise on earth which people from around the world feel they must experience before it is turned completely to steel and stone.
Thousands of expatriates and Indonesians are already living in Jakarta and if they are here either as singles or parents, there is no accommodation more secure and comfortable than an apartment.
Of course, a 25 meter lap pool helps as do courts for various sports, a children's playground and a day care on the premises with lots of shade and space for children to play in safety.
But for some developers, all these facilities are not enough so they have provided residential complexes built by them with a mini market, dry cleaners, restaurant and maid services, too.
If you happen to find an apartment at South Jakarta's Bona Vista Apartments, a panoramic view of the mountains from three sides of one of the tallest towers in the area comes free of charge along with all the leisure programs offered at the International Community and Activities Center (ICAC), located next door.
"Many of the above facilities are no longer considered a bonus. They are taken for granted and provided at most apartment buildings that cater mostly to the expatriate community," says Vera Esther, the sales manager at Bumimas Hilltop Apartments.
The prime districts remain the residential areas of Menteng and the southern parts, such as Kebayoran Baru, Simprug, Permata Hijau, Kemang and Pondok Indah.
Many an adventurous expatriate has taken up residence in a crowded kampong area beside local homes in a bid to get a more authentic feel of life in Jakarta, but newcomers and the reserved mostly prefer to live within the luxury and privacy of serviced apartments, which offer a lifestyle that is halfway between life back home in the economically advanced world, and here in the still developing world of the exotic tropics.
After a lull of about two years, the need for apartments in the city is picking up.
Leasing activity continues to be dominated by expatriates as some industries have been increasing the number of people employed by them, such as at foreign banks, insurance agencies, business service companies, information technology firms and some manufacturing companies.
Before the economic crisis spoiled it all, apartment construction had continued recklessly without much thought to demand.
There were far too many apartments in the city before the economic crisis put an end to all the construction activity.
"What we are trying to do now is to market the apartments we had built two years ago," says Deden Sudarbo, head of Procon Indah/Jones Lang LaSalle, the world's leading real estate service and investment management firm operating across 100 key markets in 35 countries on five continents.
From the 60 percent of the expatriate community that packed up its bags and left Jakarta two years ago, half of that number is now returning.
"Since the expatriates are back, our job now is to provide them with accommodation where they feel safe and happy," said Dina Patiasina, the residential director at Colliers Jardine.
While it is younger Indonesians between the age group of 25 years and 45 years who are looking for apartments to buy, expatriates rent a residence either for a short or longer period of time.
Most luxury apartments are built for the benefit of the city's two percent indigenous population that belongs to the upper income group and its large community of foreign experts on assignment here at an office or on the large premises of the numerous international schools here.
Expatriates are employed mostly by multinational companies that are prepared to pay a handsome rent for a serviced apartment.
"We are close to embassies and offices and have employed over 120 security guards that are on duty 24 hours a day. The apartments are equipped with closed circuit television cameras and residents can monitor guests on the television," says Veri Y. Setiady, the general manager of marketing at Executive Menteng Apartment.
The Central Business District (CBD) and prime residential areas remain the most preferred locations, while secondary areas with good accessibility to the toll road are also being considered, particularly by expatriates working at an industrial estate.
Since May 1998, many projects lost tenants. Given the continuing uncertainty, those who have returned seem to prefer to sign a shorter lease term of perhaps six months compared to the previous market practice of leasing for no less than two to three years.
On the other hand, several projects retained a high occupancy level even during the economic downturn, especially those that offered a more flexible lease term and relatively more competitive rental rates.
Some rental apartment projects with superior features and good accessibility have maintained their captive market and enjoyed high occupancy levels throughout the economic and political uncertainties, and also because many tenants swapped individual homes for an apartment.
In less turbulent times, most families with pets and children chose to live in the privacy of a sprawling home located in the southern part of the city with a garden and staff that usually outnumbered members of the family.
To accommodate the demands of some of these families Veri told The Jakarta Post that at Executive Menteng Apartment they are prepared to work out a compromise about allowing pets into the complex.
Most apartment buildings in Jakarta do not allow pets as a rule, mainly out of consideration for other guests.
Cheah, the general manager at Allson Residence, feels that living in an apartment building means being able to share the common area property without offending other residents.
He feels pets may present a problem as some residents could object to the noise or lack of hygiene brought about by pets.
Cheah is quick to remind that the Allson Residence is an executive service apartment known for maintaining a certain standard.
It prides itself upon being "fully" serviced in the sense that there are no hidden charges asked of residents as electricity, water, maintenance are included in the rent.
Cheah feels strongly about providing more housing for the lower-income group and would like to see more low-cost apartments built in the city.
But he also says that residents have to first educate themselves about living in an apartment as the facilities provided have to be shared among people from different countries and backgrounds.
Procon Indah/Jones Lang LaSalle predicts in a survey that office rentals will remain flat in Jakarta, but retail rental growth will continue to accelerate.
Condominium prices are likely to increase while the price of industrial land will remain under pressure.
As corporate loans remain unavailable, the future supply will primarily come from self-financed office projects, renovated retail projects covered by insurance and pre-sold condominium projects.
Several postponed retail projects are likely to resume construction in the short term given the strong demand level and increasing rentals.
While the average rental of an apartment has been flat, the rental of a quality prime apartment is likely to increase slightly due to the relatively stronger demand in this submarket.
The price of a CBD condominium has already increased slightly while the prices of condominiums in prime residential locations remain relatively stagnant.
Therefore, when it comes to deciding where to live, only the sky seems to be the limit here in Jakarta. (Mehru Jaffer)