Properties in South Jakarta are always interesting to review. In contrast to East Jakarta, for example, which is still extensive with potential land for new property developers. Including a more affordable price. South Jakarta is denser, dominated by highrise properties. Even some of the most expensive apartments in the capital are in South Jakarta.
Obstacles such as the Jakarta Outer Ring Road (JORR) and the Depok-Antasari Toll Road are planned to continue into the Bogor area.
Another potential is the existence of mass transportation which is more complete than other regions in Jakarta. Starting from the Commuter Line Electric Train (KRL) and Mass Rapid Transit (MRT) or Jakarta’s Integrated Moda Raya (MRT) which are already operating.
Followed later is the Light Rail Transit or Integrated Rail Cross (LRT). The existence of mass transportation is certainly very big impact on the development of property and land in South Jakarta.
Country Manager Rumah.com Marine Novita once said, the existence of a new transportation corridor or changes in the mass transportation system will increase the potential for property investment in an area. One of them, he said, is the realization of the Jakarta Phase I MRT, it will boost property prices because it will improve connectivity, access to people, and reduce travel time.
“With the operation of the Jakarta Phase I MRT, investment in property will increase along the MRT route. The price of land and property assets in the vicinity of Jalan Thamrin, Sudirman, Blok M, Fatmawati and TB Simatupang through this MRT line will be lifted. While the area around Lebak Bulus and TB Simatupang could become new commercial centers in South Jakarta, “Marine said in his statement.
Marine continued, Rumah.com Property Index data shows the average price index per quarter in DKI Jakarta in 2018 was 122 points, up 4% from the average price index per quarter in DKI Jakarta in 2017 (year on year).
When compared to the average price index per quarter of DKI Jakarta, the average price index per quarter of South Jakarta was 149 points, up 5% compared to the previous year.
The increase in the index in South Jakarta is estimated due to the construction of the Jakarta Phase I MRT. In line with the increase in South Jakarta, the border area also experienced the same increase. South Tangerang experienced an increase in index by 4% (yoy).
Property development in South Jakarta is also inseparable from the factor of property development on the TB Simatupang road, which has turned into a new business district.
The emergence of new office buildings is balanced by the emergence of new dwellings, especially apartments. Call it Arumaya, Izzara, Branz Simatupang, South Quarter or Midtown Residence, which is located right on the TB Simatupang road.
Then there are those who protrude a little, like Apple Residence on Jalan Jatipadang. For apartments, studio unit prices are on average around Rp1 billion and above.
While tread houses are more on the periphery, such as around Jagakarsa and Lenteng Agung, which borders Depok, West Java. There are also several other housing complexes that are scattered around Bintaro, which is directly adjacent to the South Tangerang area.
Still according to Rumah.com Property Index data, the average price of apartment land in the Gatot Subroto area in 2018 has been in the range of Rp30 million-Rp80 million / m2. Similar prices were also found in the TB Simatupang corridor and several other areas.
Even Leads Property Indonesia’s research shows that three of the five most expensive apartments in Jakarta are in South Jakarta. Like Sun and Moon Apartments in The Dharmawangsa Complex, Kebayoran Baru. The apartment is priced at Rp110 million / m2, excluding taxes.
Furthermore, Langham Residence at District 8, Sudirman CBD is marketed with a benchmark price of Rp98 million / m2. Then The Dharmawangsa Residence Tower 2, sold at Rp. 70 million / m2.
Impact of Mass Transportation
More specifically for vertical housing which is definitely in more strategic areas. It is even called the Central Business District (CBD), which is the TB Simatupang corridor as well as Jalan Gatot Subroto to part of MT Haryono. In addition, it is also spread in the areas of Kemang, Pondok Indah, Kebagusan, Kalibata, Senopati, and Pejaten.
Of course, it is incomplete without mentioning the names of well-known regions, such as Kuningan, Setiabudi, and Sudirman which are in the golden triangle of the Sudirman-Thamrin-Kuningan-Gatot Subroto CBD.
Residential property is widely spread following the movement of infrastructure, especially mass transportation. Some already exist and will be built at Commuter Line station nodes, starting from Manggarai Station to Tanjung Barat.
Almost all of them are vertical dwellings developed with the concept of Transit Oriented Development (TOD), or at least within 800 meters of the mass transportation node.
PT PP Tbk is preparing to build its TOD megaproject at Manggarai Station, with an estimated investment of Rp215 trillion. This integrated area will be developed on an area of 60 hectares which is even said to be an international icon. Although land acquisition is still hampered now, the project with jumbo investment is still included in one of the priority PP projects.
Continuing around the Cawang Line Commuter Station there is the City Tebet – The Premiere MTH LRT project developed by PT Adhi Commuter Properti (ACP). The project which is also attached to the LRT Station is located on Jalan MT Haryono which is the entrance gate of Jakarta.
The Premiere MTH is a mixed-use building consisting of apartments, offices & commercial areas with an area of 7,395 m2. Still in the MT Haryono corridor, ACP is also building an MTH 27 Office Suite office project with an investment of Rp1.6 trillion.
While around the Kalibata Station, there are already existing projects, the Kalibata City superblock developed by Agung Podomoro Land and Synthesis Development. Also around the station, Perumnas and PT Kereta Api Indonesia (KAI) have also agreed to work together to build 6,000 apartment units for TOD. Even the synergy of the two SOEs was also realized around Pasar Minggu and Tanjung Barat Stations.
For the Mahata Tanjung Barat project at point 0 Tanjung Barat Station, it is now entering the construction phase of the upper structure. Currently it has reached level 7 of the basement level. Mahata Tanjung Barat has also obtained the IMB Foundation in 2018 and the definitive IMB, so the developer is optimistic that the construction progress of the Mahata Tanjung Barat project will be completed on time, ie in the second half of 2020. Thus, the handover process will be carried out gradually from mid-2021.
The project, with an investment of around Rp720 billion, has received a big response from consumers. Noted two towers are almost completed sold. Subsidy towers have been sold out and commercial towers have reached more than 85 percent.
“We are currently launching the next commercial tower, with a total of around 440 units being marketed starting at Rp. 500 million,” said Anna Kunti, Marketing Director of Perumnas, last July.
Exactly opposite the Tanjung Barat Station is also being developed by the Southgate Residence mixed use project by Sinar Mas Land (SML). Southgate was built on an area of 5.4 hectares with an investment of Rp3.2 trillion, carrying the concept of “where urban luxury meets green living”.
Southgate consists of 2 strata title residential towers which encompass around 500 units. Strategic location, adjacent to the station as well as toll gate access boosted the project’s significant increase.
At the pre launching, on February 25, 2017, it started to sell for Rp1.3 billion for the type 1 bedroom. Until March 2018, prices have gone up 7% and will continue. Even the estimated investment potential of the rental market tie is also quite tempting with yields ranging from 8% -10%.
The joint venture project between SML together with two Japanese companies, namely Keikyu Corporation and PT Itochu, has entered the second tower sales since early March 2019. Prices now range from IDR 2.5 billion, including taxes.
According to Hongky J. Nantung, CEO of Sinar Mas Land Commercial, the presence of this project has also stimulated property development in the South Jakarta area. “We offer 25 premium facilities that are mutually integrated,” he said.
Shifting to the side of the Jakarta MRT, a number of major developers have and will build prestigious projects. There is a Cipete CORE (Creative Office and Residence) at zero point Cipete MRT Station developed by PT Jaya Real Property, Tbk (JRP). Projects with an investment of Rp200 billion are located on 2,600 m2 land. The 17-storey apartment totaling 199 units sold starting around Rp1-3 billion.
PT Intiland Development Tbk (Intiland) even has several integrated MRT projects. Antaralain 57 Promenade is located in Hotel Indonesia Area, Intiland Tower in Sudirman, 1 Park Avenue which is adjacent to Blok M, South Quarter in Fatmawati, and South Grove, Serenia Hills and Poins Square which are close to Lebak Bulus Grab Station.
For the South Quarter mixed-use project, Intiland has launched a vertical residence South Quarter Residence. Phase II development will be focused on 2 residential towers as high as 21 floors after 3 office towers in the first phase.
The project will target the upper middle segment, which will be released as many as 366 apartment units in each tower. Apartments for sale from Rp1,5-4,8 billion. The 7.2-hectare South Quarter area is only about 500 meters from the Lebak Bulus Grab MRT Station.
In fact, Intiland has also established a strategic partnership with PT Menara Prambanan – developer of Poins Square – to apply the new concept while integrating Poins Square directly with Lebak Bulus Station.
“The location is very strategic, next to the Lebak Bulus MRT station, so that it will be the main meeting point for residents who utilize the mode of transportation,” said Archied Noto Pradono, Intiland’s Director of Capital Management and Investment.
“Soon the development of the Lebak Bulus area will be announced as a TOD or transit-oriented area. The location is right in front of Poins Square. Later, a pedestrian bridge or sky bridge will be built around 200 meters long that connects Poin Square and Lebak Bulus Grab Station which is equipped with lift access, “explained William.
Not only that, even the Jakarta MRT will also develop TOD projects in several other stations, such as Dukuh Atas Station. Antaralain with Perumda Pasar Jaya for the use of ex Blora Market area of 3,129 m2. This land will be used as a building and mixed function.
“There are many commercial potentials that we can work on. After the former Blora Market land, there are also in Bendungan Hilir, Blok A, and Fatmawati. I think we need a special team about this, “said PD Pasar Jaya Managing Director Arief Nasrudin.
In addition to housing, commercial areas such as Blok M Plaza which are managed by PT Pakuwon Jati Tbk are affected by the increase in occupancy of the shopping center by 100-150 percent. The presence of the MRT brought new hope, because before that, the Blok M area had begun to be abandoned by the community.
Now, after being fully connected by the Jakarta MRT, Blok M Plaza visitors can reach 20-25 thousand people / day. Compare with before, only 8-10 thousand people / day.
This achievement is in line with research by property consulting agency Jones Lang LasSalle (JLL). JLL notes that property rental prices for retail needs also rose 20 percent, the impact of the MRT.
Even Movement
Aside from mass transportation, property movement also spreads almost evenly throughout South Jakarta. Some of them are like Synthesis Residence Kemang which was developed by Synthesis Development.
Apartment 3 tower carries a modern ethnic concept, thick with Javanese nuance. Projects on 2 hectares of land have been sold up to 60% and 90% for the Nakula and Sadewa towers. While the construction progress has reached 23 and 26 floors out of a total of 33 floors.
“Around December this year we will be topping off,” said Dwi Handayani, Sales Manager of Synthesis Residence Kemang.
For information, in 2016 the apartment is priced starting at IDR 35-36 million / m2 or the equivalent of IDR 1.1 billion for type 1 bedroom (32.20 m2). The same type currently ranges from Rp1, 3 to 4 billion.
“Our prices are still more competitive compared to apartments around here. That way, the chance for the increase is even greater, “Dwi said. He added, the average occupancy of surrounding apartments reached 80% with yields between 8-10 percent.
Exactly in the TB Simatupang corridor lined with residential and office projects that offer various advantages. There is an Izzara Apartment integrated with The Sima Office Tower developed by Alila Group and Grage Group.
The Izzara has experienced quite a high price surge. At the beginning of marketing in 2015, it was sold at a price of around Rp21 million / m2, while in February 2018 it was around Rp40 million / m2.
Then there is Branz Simatupang which was developed by Japanese developer, Tokyu Land. On the same side, Arumaya apartments are also being developed, a collaboration project between Astra Property and Hongkong Land. The project on 2.6 hectares of land is targeted to be completed and begin to be handed over in 2022.
In the Pejaten area there is Vasaka Solterra developed by Waskita Realty. This two-tower apartment was built on an area of 11,124 m2 which included 1,058 units. Then in the Permata Hijau corridor, Kebayoran Lama is Permata Hijau Suites, which was developed by the Pulau Intan Development consortium with the Terry Palmer Group. 649 two-tower apartments are sold starting at Rp1.3 billion or around Rp29-32 million / m2. In 2017, it was sold starting at Rp. 24 million / m2.
Office space
In addition to housing, the property business in South Jakarta which is also very prospective is an office. Menara Tendean (M-Ten), developed by PT Singa Propertino and Karyadeka Group, was just completed in mid-September 2019. This office building is located on Jalan Kapten Tendean, South Jakarta. This building provides office space of 23,628 m² and retail space of 3,142 m². M-Ten can be used in 2020.
The Sima which consists of 30 floors with 3 floors of retail area has a floor plate area of around 2,000 m2 with a total gross area of around 100,000 m2. Currently it has also begun to be marketed. While rental prices range from Rp. 385,000 / m2 / month.
Similarly, CIBIS Nine, an office building developed by PT Bhumyamca Sekawan, also fixes office space rental prices above IDR 300,000 / m2 / month. The office building was built on an area of 60,000 square meters consisting of 16 floors. Size of floor space per floor ranges from 4,000 square meters.
Here is also available Matrix Smart Suite, which is an urban-style office space, similar to coworking space, which is marketed around Rp1.8 billion (including VAT) for a size of 45 m2. Until now, the level of office space occupancy in CIBIS Nine has reached 100 percent. The average office space is for rent. Only about 20 percent are sold.
While the South Quarter integrated offices developed by Intiland consist of three towers as high as 20 floors with an area of 123,000 m2 equipped with supporting retail facilities covering an area of 12,500 m2. The selling price of domed or dome-shaped offices is above Rp. 37 million / m2. While the rental price is above IDR 280,000 / m2 / month.
Source : www.propertiterkini.com
