Jakarta. Farpoint Realty Indonesia, the property arm of conglomerate Gunung Sewu Group, is considering venturing into the affordable housing market to cater to for first-time home buyers in the outskirts of Jakarta, a top executive at the company said on Wednesday (15/03).
To date, Farpoint is known for its high-end apartments and office tower developments located in Jakarta, such as Verde in Kuningan and Sequis Tower in Sudirman.
"Strategically speaking, the company now sees [the opportunity] in developing housing properties that cost around Rp 400 million [$30,000]," Jusup Halimi, Farpoint Realty Indonesia chief executive officer, told reporters on Wednesday.
Jusup said the company has a dedicated team that will develop Farpoint's plan, including its concept, scout for the appropriate location and conduct market research.
He said the company will most likely target young couples whose combined total income is approximately Rp 10 million a month. "Hopefully, next year we will launch [the project]," he said.
For 2017 and 2018 the company will concentrate on finishing Farpoint's Sequis Tower by June and Verde Two apartments by September.
Sequis Tower offices are available for rent at Rp 450,000 per square meter per month, twice as much as rent for offices in the same high-end category. Data from Colliers International, a property consultancy firm, showed rent for such offices was between Rp 200,000 and Rp 350,000 per square meter per month in the fourth quarter of last year.
Farpoint is also offering presale Verde Two apartment units to the public. Verde unit measurements vary from 170 square meters to 220 square meters and sold at Rp 48 million per square meter.
Fairpoint's next project is a mixed-use development with 110 apartment units and 202 hotel rooms. It will also have offices called the Hundred in Kuningan. Construction will commence in 2018, Jusup said.
The late Dasuki Angkosubroto started Gunung Sewu Group in 1950 from trading staple commodities. His sons, Hartadi and Husodo, now steer 33,000 employees across its insurance, agribusiness, food, footwear and real estate businesses. The group's household brands include Yupi jelly gum, Sunpride banana and Belfoods chicken nuggets.