Location remains buyers' main consideration

Location remains buyers' main consideration

Apartments have become an important alternative as a place to
live for many Indonesians, as indicated in the continued increase
in apartment sales during the past few years.

More than 40 new apartment projects have been built during the
past two years, providing a total of 21,000 units, according to
data issued by Procon property consulting company.

As of March this year, 68 percent of these apartment units had
been sold, with total sales of Rp 11 trillion (about US$1.22
billion).

It is interesting to note that most of the buyers, according
to the company, paid for their apartment in cash rather than with
a bank loan.

Its Buyers' Preference Survey, issued in March this year, says
condominium buyers are mostly 26 to 45 years old, well-educated
and with experience of living overseas.

The buyers are mostly young couples with two children, and
work within the capital's Central Business District (CBD) or the
Golden Triangle -- the area bounded by Jl. Sudirman, Jl. Gatot
Subroto and Jl. Rasuna Said.

What is their motivation in buying an apartment?. According to
the Procon survey, it is divided between making an investment and
wanting the unit as a principal residence.

About 31 percent of purchases are for investment purposes, 48
percent for use as a primary residence, 13 percent as a secondary
residence, with the remaining 8 percent for other family members.

The survey also indicates that most buyers purchase an
apartment for its strategic and convenient location.

Buyers' selection is based on five top criteria: convenient
location in the heart of the city, close proximity to workplace,
unit layout, completeness of facilities, and building design and
site layout.

The most preferred locations, according to the survey, are
Central Business District (CBD)-Jl. Sudirman (34 percent), South
Jakarta (17 percent), CBD-Jl. Rasuna Said (15 percent), CBD-Mega
Kuningan (8 percent), CBD-SCBD (6 percent), West Jakarta (6
percent) CBD-Jl. Satrio (4 percent), CBD-Jl. Thamrin (4 percent),
North Jakarta (4 percent) and Central Jakarta (2 percent).

The survey also indicates that the fewer the number of units
in the project, the better.

Apartment units measuring below 100 square meters (sq m)
accounted for about 45 percent of purchases, followed by those
100 sq m to 200 sq m (about 38 percent) and 200 sq m to 300 sq m
(11 percent). Those in the 300 sq m to 400 sq m category account
for about 4 percent of purchases and those 400 sq m to 500 sq m
fewer than 3 percent.

Apartments finished in minimalist architectural styling are
the most preferred, accounting for 39 percent of buyers' choices,
followed by classic contemporary (25 percent), Mediterranean (15
percent), Colonial (13 percent) and Gothic (2 percent), while 6
percent of buyers felt the architectural style was not important.

The most preferred facilities are a swimming pool (ranked
first), fitness center (second), tennis court (third), mini-
market (fourth), children's playground (fifth), terrace garden
and BBQ area (sixth) and function room (seventh).

The survey also indicates that the most preferred apartment
units are those carrying a price range of Rp 1 billion to Rp 1.5
billion), accounting for about 22 percent of buyers. Units in the
price range Rp 750 million to Rp 1 billion are in second place
(about 18 percent), with those in the range Rp 500 million to Rp
750 million third (about 13 percent).

Cash installments are the most common form of payment (39
percent), followed by hard cash (23 percent), bank loans (17
percent) and balloon payment (17 percent). -- The Jakarta Post