Location remains tenants' main consideration

Location remains tenants' main consideration

I. Christianto
Contributor
Jakarta

Apartments generally offer similar facilities and services
such as ample living areas, large bedrooms and luxurious
bathrooms in addition to a good security system. But the location
remains the main reason why tenants choose them to stay in.

Apartments located in the Central Business District (CBD) or
outside the CBD continue to enjoy a high interest due to their
strategic locations, according to director of residential of
property consultant Colliers Jardine Dina Pattiasina.

"Their occupancies are generally higher thanks to their good
location, good management and quality of facilities and
services," she said.

The average sales rate of high-end apartments in the CBD
ranges between US$2,000 and $3,000 per square meter while the
rental rates are between US$3,000 and $7,000 per month. For the
middle-end, the average sales rate is US$1,200 to $1,500 per
square meter, and the rental is between US$1,500 and $4,000 per
month.

"Location remains the number one consideration for
expatriates," Dina said, adding that about 50 percent of the
tenants in the top-end and upper-middle class apartments were
expatriates.

The associate marketing director of Plaza Residences,
Ratu Neilla, agreed that location was one of the competitive
edges of her apartment building.

She said the Plaza Residences, owned by PT Prima Adhitama
International Development, were part of the multi-tower MidPlaza
complex on Jalan Sudirman in the CBD. The residences, which offer
a secure and comfortable environment with the services and
facilities of an international hotel, target foreign executives
as its tenants.

Deputy general manager for tenancy and marketing of the three-
tower Park Royale Apartment, Bambang Ekajaya, also said location
was the key to success.

"In the early operation period, there were only about three
apartments in the surrounding area, but now there are more than
30. So competition is very sharp now. Before we enjoyed full
occupancy, but now it is only about 80 percent. Location is the
key to success and we also offer excellent services to the
tenant, therefore we can survive," he said.

Park Royale, built in 1998, is one of the pioneer apartments
in Indonesia. The 480-unit Park Royale is owned and operated by
PT Sarilembah Tirta Hijau. Located in the CBD on Jalan Gatot
Subroto, the apartment has the best location.

"We maintain our services with a standard quality of a five-
star hotel," he said.

The apartment also offers sport and recreation facilities in
addition to supporting facilities such as restaurant, cafe,
salon, spa, pre-school and child care.

"We offer the concept of "one-stop living for the tenants,
that meets the needs of the entire family," said Bambang.

The assistant sales manager of Apartment Pavilion Elsye,
Soetjipto, said her apartments offered various amenities in
addition to the business facilities and services as well as other
facilities for leisure and convenience.

"Pavilion Apartments has a strategic location. We offer our
tenants free access to the American Club,' she said, agreeing
that location and good service were the main factors in the
competitive apartment sector.

Pavilion Apartments, opened five years ago, is owned and
managed by PT Duta Anggada Realty. It now markets three 133-unit
towers, including a tower for leasing and two others for sales.