New apartment units sell like hotcakes T. Sima Gunawan Contributor/Jakarta
Apartment units, be they mid-market or exclusive, are selling like hotcakes. When it comes to comfort, money apparently does not matter.
A number of developers contacted by The Jakarta Post confirmed that their properties were selling well. Interestingly, many people are so eager they buy units long before construction is completed.
The Capital Residence, which opened just last month, says 40 percent of its 258 exclusive apartments, including its six penthouses, have been sold.
The units, between 151 square meters and 322 square meters is size, sell for Rp 2 billion (about US$210,500) to Rp 3 billion. The Capital is situated in the Sudirman Central Business District in Central Jakarta, one of the prime locations in the city.
The Peak, currently under construction on Jl. Setiabudi, which is quite close to Jl. Sudirman, received a positive response from apartment buyers during its prelaunch sales.
About 48 percent of its 351 luxury apartment units were sold during prelaunch sales in March 2004. When it officially opened in May, total take-ups reached 60 percent.
"And now about 75 percent of the apartment units have been sold," said Veri Y. Setiadi, the executive director of The Peak. "Each unit costs between Rp 1.2 billion and Rp 7.5 billion."
Another apartment building, the View Executive Residence, located in Kemayoran, Central Jakarta, also reported good sales.
The property was introduced in August 2004 but sales began only three months ago. So far, almost 30 percent of its 441 units have been sold, according to Suhandi, head of the marketing department.
Those units in highest demand, he said, were the ones with price tags of between Rp 300 million and Rp 1.7 billion.
The View also has several "very special" units, including four Royal Suites, three Royal Suite Garden units and two penthouses, each costing between Rp 3 billion and Rp 7 billion. The penthouses are located on the 39th and 40th floors and each measures 650 square meters.
Like other metropolitan cities throughout the world, Jakarta has seen the development of numerous apartment buildings over the past decade. The market was quite gloomy for some time due to the economic crisis that hit in 1997, but business is thriving now as the economy continues to recover.
According to property consultants, most buyers purchase apartments not to live in but as an investment. Most of the buyers lease the apartments and then sell when property prices rise.
Location remains buyers' main consideration in choosing an apartment. People prefer apartments in the heart of the city, near office buildings and other support facilities such as shopping malls.
Design is another important factor. Djoni Suyanto, the director of The Capital Residence, said the apartment building used a unique architectural concept based on the structure of the ancient temple complex Prambanan in Central Java.
The apartment building won the Autodesk 2005 Design Excellence Award from Architecture Asia magazine.
Meanwhile, The Peak has been named one of the 50 best apartments in the world. The Peak has four towers, two of them facing south with 35 floors each. The other two towers face north and have 55 floors. Soaring to a height of 225 meters, they will be the highest twin towers in Asia.
Most of the new apartments in Jakarta were built as an integral part of large building complexes that also include shopping malls, offices and hotels.
The View is, for example, part of Mega Glodok Kemayoran, which includes a shopping center and office space. Senayan Residence in South Jakarta is located at the same site as Plaza Senayan.
The Summit, under construction at the new business district in Kelapa Gading, East Jakarta, is quite close to Mal Kelapa Gading.
Most of these apartments offer the same things: comfort, 24- hour security and sport facilities, from swimming pools and tennis courts to jogging tracks and even golf courses. Other facilities offered by some apartments include preschool, music schools, spas, libraries, restaurants, business centers, beauty salons and ATMs.
Gatot Sedyadi, general manager for marketing at The Pakubuwono Residence, an exclusive apartment building in South Jakarta, is not worried about the tight competition in the market.
"We see the competition as a positive thing, meaning that the more apartments being constructed, the more convinced people are that 'apartment living' is the future of living in a big city," he said.
He also observed that there had been a change in the lifestyle of people in the city. Unfortunately, this has not been followed by the proper development of infrastructure like roads and the transportation system.
Therefore, living in an apartment located in the city center is more desirable so people can get to work on time.
The Pakubuwono Residence, whose units sell for between Rp 2.4 billion and Rp 18 billion, was especially designed as a residence and is not integrated with offices or commercial units.
It is located on a 4.2 hectare plot of land in a residential area in Kebayoran Baru. Only 18 percent of the land is being used for construction, with the rest of the land to be used for gardens and outdoor facilities.
"All of the areas in The Pakubuwono Residence will be handicap-friendly and will come with facilities to make them accessible to the handicapped," Gatot said.