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.