New apartment topped off in Kelapa Gading

JAKARTA (JP): A new apartment building featuring small size apartments targeted at middle income residents will be ready for occupancy in December in Kelapa Gading Permai, North Jakarta, the developer said yesterday.

The Wisma Gading Permai apartment will consist of three towers, Soetjipto Nagaria, director of PT Summarecon Agung, said after a topping-off ceremony for the 21-story Tower A. There will be a total of 1,000 apartment units in the three towers.

"The total investment is about US$35 million, including $20 million for construction," Soetjipto said. "In general, we offer small size apartments measuring 37 square meters each."

He said all apartments, offered at Rp 62 million ($25,300) each, had been sold since construction started last June.

Tower B, consisting of 24 floors, will be finished in March next year and the 21-story Tower C in June 1998.

Facilities include a kindergarten on the fourth floor of Tower A, swimming pool and parking space. Each tower will have two floors of office space.

Soetjipto said three factors contributing to the city's glut of property space were the ongoing general election campaign, consumers' low purchasing power and the weakening property market.

He said the decision to build small size apartment units in the residential and commercial center of Kelapa Gading was made in the wake of increasing economic activities in the area, in which many middle income families reside.

Jakarta Governor Surjadi Soedirdja, responding to the need for apartments for the middle class, has instructed city officials to cut red tape in issuing building permits for low-cost apartments.

Earlier, property consultant firm Colliers Jardine predicted Jakarta's apartments could be heavily oversupplied because of this year's 183 percent increase in apartment space, amounting to 33,600 units.

Colliers' head of research, Evelyn Khoo, said developers were now targeting the lower end of the market to combat weakening demand.

There were rumors that Wisma Gading Permai apartment was appropriated on state-owned land but the head of development at the North Jakarta mayoralty, A. Radjagukguk, said the mayoralty reconfirmed the site was a commercial plot and issued the building permit.

Mayoralty secretary Sarimun, representing the North Jakarta mayor, reminded Summarecon Agung to adhere to hygiene standards by upgrading its waste disposal system and prevent health hazards to 17,000 families in the area. (10)