Nine more apartment projects under construction this year
Nine more apartment projects under construction this year
Agustina Wayansari The Jakarta Post Jakarta
At least nine apartment towers will be built in Jakarta this year, giving more positive proof that the country's ailing property sector is recovering.
The construction of the new projects follows the successful opening of at least five new apartment projects in the capital this year.
Major property developer PT Agung Podomoro Group will build three of the apartment projects, an apparent move of the company to take advantage of signs of improvement in the economy.
The three projects include the five-tower Pakubuwono Residences which will be built on Jalan Pakubuwono, Kebayoran Baru, South Jakarta, the Mediterania Palace Residences Tower B in Kemayoran, Central Jakarta and Gading Resort Residences in Kelapa Gading, North Jakarta.
"Construction of Pakubuwono Residences apartment will begin in June this year and it is scheduled for completion in December 2005," Pakubuwono Residences general sales manager Ray Susilo said in a recent interview with The Jakarta Post.
Ray said that the Pakubuwono apartment complex, which will occupy a five-hectare plot, will have 639 apartments, including dozens of penthouses.
Construction of the apartment complex is based on the new apartment development concept, which emphasizes the need for allocating more space for facilities for sport and social activities.
"About 80 percent of the five-hectare area has been designated for sport facilities, a park and a children's playground," Ray said.
Apartments in the new complex will start selling in June with price tags ranging between Rp 1.9 billion and Rp 10 billion (about US$1.17 million) per unit. "Some investors have expressed an interest in buying some of the units either to rent out or to live in," he added.
The management will also be able to offer help in managing and renting out the apartments if the buyers do not use them, he said.
Separately, Rawisyah Aditya, the advertising and promotion manager of Agung Podomoro Group, said another project of the group would be built on a 1.6 hectare plot at Kelapa Gading Square in North Jakarta.
The 430-unit Gading Resort Residence complex will be divided into four blocks, comprising 28 towers of between six and 12 floors.
He said that this apartment complex, to be built in a resort style, would carry a minimum price tag of Rp 650 million per unit. Construction will also begin in June and is scheduled for completion in 2004.
"The price reflects the fair value of this exclusive apartment complex," Rawisyah said.
Besides the two apartment complexes, Podomoro is developing an apartment complex called Mediterania Palace Residences Tower B, which is located on a 1.6 hectare area in Kemayoran, Central Jakarta. The apartment tower will have 540 units and construction is scheduled to be completed in 2005.
The three new projects follow the completion of several of Agung Podomoro's apartment projects over the past two years, including the Mediterania Garden Residence apartment complex in Tanjung Duren, West Jakarta, which opened early this year.
In addition to Podomoro, several other developers have also announced plans to build new apartment complexes this year. The projects include the 32-unit Daksa Residence in South Jakarta, the 1,362-unit Mutiara Mas in East Jakarta, the Bellagio Mansion in the Central Business District, Jalan Sudirman, South Jakarta, Grand Permata Tower B in South Jakarta and the townhouse Permata Senayan in South Jakarta.
The economic crisis, which hit Indonesia in late 1997, jeopardized most of the country's business sectors. Many property projects were canceled due to the crisis. The property industry, one of the hardest hit in the business sector, started showing signs of life again two years ago with the construction of new projects.
Apartment developers said they are optimistic that further improvements in the economy, as indicated in the strengthening of the rupiah to the U.S. dollar, would stimulate economic activities.
"Improvements in the economy will automatically have a positive impact on the property sector," one developer said.
Meanwhile, property consultant Procon reported in its Quarterly Property Review that a total of 179 units of apartments were put on the market during the first quarter of this year.
The new supply came from Pantai Mutiara Tower 2 and the rest from the conversion of rental apartment units at Setiabudi Apartments.
An additional supply also came from townhouse units at Vila Kemang Hijau, which was converted into townhouses for sale.
Sales of units in projects under construction will continue in 2003. The projects include Grand Permata Apartment Tower 2 and Tower B of Mediterania Palace Residences of Podomoro Group.
A new supply of apartments in the second half of 2003 will come from Pantai Mutiara Apartment Tower 3 and 4, Da Vinci Apartment and Ambassador Apartment Tower 2, Procon said.