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Discussion Starter · #1 ·
Seriously... Are people in Jakarta ready to live in apartments??? I don't think so! Look at all the apartments that are already inhabited... they are empty, or at least they are a 2nd/3rd property that a family has. One other thing, I am feeling it for the "pembantu" as they are no fentilation whatsover for them if a family chooses to live in an apartment/flat.

i don't even think i know someone who lives in an apartment in Jakarta!??!! what do you think?
 

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for me some of ur points quite true but there are also more foreigners who work in jakarta now so for me i think they will choose apartment rather than normal houses

and also from what i gather most of the apartment in jakarta (newly apartment) sold out 80%!
 

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:) mostly come from indonesian of course ! but also some foreigners not so sure
 

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Seeing is beleiving!!

an example:

taken from Setiabudi brochure:
(look at the number of sold!) :runaway: :runaway: :runaway: :runaway:


 

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Urban Monk
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yeah, many people move from country sides to cities. but most of them are farmers etc that dont have money to buy those apartments. farmers in indonesia is not as wealthy as in Australia etc.

1 billion for a unit! my gosh... i know it cost that much but still suprised me.

do you think its worth it to pay that much for an apartment in jakarta?
i dont think it will be a good investment.
 

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Also, a lot of them are sold to companies or investors who buy a bulk of units (say 10) for investment purposes. The demand for end-users isn't great...its investors and speculators that are driving the market...especially for those upmarket apartments (Rp3 billion and up).
 

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i think it is not worth to buy apartment at Indo the price almost same as U.S.A /Singapore
 

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Apartments everywhere, but few tenants
Abdul Khalik, The Jakarta Post, Jakarta

New apartments and condominiums continue to flood the capital's market despite the fact only few of them are being occupied. What prompts developers to continue to build new apartments and condos? The following is the first of a series of articles on apartments and condominiums in the capital.

Driving past apartment and condominium buildings in the capital in the evening, you would immediately notice that most of units were dark, suggesting they were not being occupied.

But, ask the marketing offices or developers of the apartments and condominiums, they would likely suggest that their apartments and condominiums were sold out, or at the very least 85 or 90 percent sold.

But where are the tenants?

Research analyst Hadi Syamsudin of property analyst firm Coldwell Banker Commercial Indonesia told The Jakarta Post that a great majority of Indonesians preferred staying in residential complexes to living in apartments and condominiums, which are often identified with individualistic lifestyles.

He added that Jakarta families were just not yet accustomed to living in apartments and condominiums.

That, however, does not seem to prevent property developers from building new apartments and condominiums in the capital, a city of around 10 million.

Property developers, including Agung Podomoro, Artha Graha and Gapura Prima, continue to build condominiums and apartments in the capital, adding to the existing stock of around 45,000 units in April 2005.

Expected to come on stream in the second quarter of 2005 are 1,718 condominiums from several projects in Central and South Jakarta, including the Sudirman Mansions, SCBD suites, Bellazzio Tower 1, Poin Square Apartments, Airlangga Apartments, Bellagio Mansions and Bellagio Residence, while 168 new apartments are expected from Aston Rasuna and Marriott Executive Apartments.

Recent research from Coldwell suggested that many Jakartans buy apartments and condominiums either to gain profit when they resell the units, or to rent them out, rather than to use them as residences.

"Most apartment and condominium buyers want to rent out their units to expatriates or local executives and professionals, while some of them buy the units to gain price margins when they resell them. So, most buyers have no intention of staying in the apartments and condominiums," Hadi said.

According to Coldwell, to April 2005 all apartments and condominiums coming onto the market had been sold to between 85 percent and 95 percent of the total 45,000 units in the capital.

"Many Jakartans have the purchasing power to buy several apartments and condominiums, and judging from the sales level of condominiums and apartments, we seem to have many rich people in Jakarta. Many of them even buy two or more rooms in each project," Hadi said.

Current average selling price of condominiums in 2005 is Rp 8.31 million per square meter (sqm), an increase of 5.19 percent over the level at the end of 2004, while the average apartment selling price is Rp 6.84 million per sqm, up by 3.95 percent over the previous semester.

Rental prices remain relatively stable, ranging from US$2.84 to US$27.06 per sqm per month, a slight increase of some 0.72 percent over that of the end of last year.

Beside expatriates, the target market of people who stay in apartments or condominiums are young executives or young couples who have just arrived from abroad, and the children of the wealthy who want to be independent.

High margins are also one of the driving forces why developers continue to build apartments and condominiums, as just 50 percent sales means that developers will recover their total investment.

Many developers finance their projects with investments from internal capital and individual investors as banks are still unwilling to give out large loans.

"Around 70 percent to 80 percent of money invested in the projects comes from private individual funds, as banks are still reluctant to channel loans. People want to invest in a project for much higher gain," Hadi said.

Developers also often used down-payments from buyers to begin construction if the developers had acquired the lands, he said.

Hadi predicted that developers would keep on building new apartments and condominiums until 2007 when the market was expected to be saturated.
 

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Proximity, security drive residents to apartments

Abdul Khalik, The Jakarta Post, Jakarta

Driving outside the Taman Rasuna Apartment South Jakarta, Susan, 25, an employee of a foreign company on Jl. Sudirman in Central Jakarta, nods her head to the beat of a hip-hop song playing on her car's stereo.

"I just want to stop by to get some clothes for some clubbing tonight," she told The Jakarta Post before driving to a restaurant near her office, 15 minutes from her apartment.

After graduating from an overseas management school two years ago, Susan moved out of parents' place in a housing complex in Cibubur, East Jakarta, preferring to live nearer to her office.

She said her parents gave her the down-payment to buy her apartment while she pays the monthly installments.

"I have tried several times to drive from my parents' house, and I have to spend over two hours in traffic just to get to my office. They were very stressful journeys and I was already exhausted when I got to work," she said.

Living in an apartment, Susan, single and independent, can exercise each morning before going to work or swim in the apartment pool every evening, if she's not meeting her workmates or friends in a nearby cafe.

Susan is one of a growing number of well-paid young professionals who are choosing to live in apartments rather than at home with their parents.

There are estimated to be about 45,000 units of apartments and condominiums in the capital, with more expected in the next few years as property developers, such as Agung Podomoro, Artha Graha and Gapura Prima, continue to build across the city.

Most apartment developers are targeting young executives, couples and established families, some who may also own houses in the suburbs but who choose to stay in the city due to the nature of their work.

Ferry S. Supandji, vice president of PT Bakrie Swasakti Utama, the developer of Taman Rasuna Apartments, said many people now preferred to live in apartments over houses because they were closer to work, had more facilities and were cheaper to buy.

"With Rp 500 million, you can live in a prestigious neighborhood in the center of the city, while the same amount of money will only buy you a house in a suburban area or even one out of town," he told the Post.

Ferry said many families stayed in apartments during the week, and spent their weekends at houses in Cibubur, Bekasi, Bintaro, or Tangerang.

Apartments like Taman Rasuna, Ferry said, provided complete sports facilities, including swimming pools, tennis and basketball courts, gymnasiums, jogging tracks as well as playgrounds for children, mini markets and drugstores.

The 15-tower Taman Rasuna complex also prioritized the security and privacy of its tenants, he said.

"Each tenant has an access card. You can't just get inside a room as you have to face the security guards first. Unless the tenants give visitors their permission to come in, they can't enter the apartments," he said.

Not all of the people who bought apartments lived in them, however, he said.

"Many owners rent their apartment for between Rp 2.5 million and Rp 6 million a month. It is a good investment as they get around a 10 percent return," he said.
 
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