Tokyu Land builds residences in Jakarta CBD, to launch more projects despite stagnant market

27, Feb. 2020

Groundbreaking for Kita Tower Condominium in the new Branz Mega Kuningan development in the central business district of South Jakarta on Feb. 26, 2020. (NNA)
Groundbreaking for Kita Tower Condominium in the new Branz Mega Kuningan development in the central business district of South Jakarta on Feb. 26, 2020. (NNA)

JAKARTA, NNA – PT. Tokyu Land Indonesia has managed to sell 40 percent of the 482 units in its first condominium in the heart of Jakarta despite the sluggish property market.

The luxury apartments will be in one of the two towers of Branz Mega Kuningan, the company's first large-scale development in the bustling central business district of South Jakarta where people could live and work and not face traffic jams the Indonesian capital is notorious for.

Located on 11,000 square meters of prime land, Branz Mega Kuningan is developed by Tokyu Land Corp. together with Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) and major contractor Shimizu Corp. with a total investment of about $ 200 million.

While acknowledging that the Indonesian property market has been challenging with an unpredictable investment climate, President Director of Tokyu Land Indonesia Hidetatsu Ikeda believed this could be overcome by convincing investors.

"We believe the property market in Indonesia will be bright again, like the Indonesian economy. We are sure because we have consulted with renowned real estate consultants in Indonesia," he told NNA at a groundbreaking ceremony on Wednesday.

To revive the sector, which was also hurt by the long-running elections last year, the government has rolled out incentives including a higher tax threshold and the reduction of down payment.

There will be no letting up for an established player like Tokyu Land, which has had nearly 50 years of track record in Indonesia starting with the building achievements of its parent company in Japan, Tokyu Fudosan Holdings Corp. group which entered the local market in 1975.

Ikeda said the 100 percent Indonesian subsidiary of the holding company also plans to develop hotels, resorts and offices in Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek).

The push to launch Branz Mega Kuningan came on the heels of two recently completed residential projects - Branz Simatupang in South Jakarta and Branz BSD in South Tangerang.

Construction work for the Mega Kuningan project, which began on Wednesday, will see the completion of the condo tower, a tower of service apartments and commercial facilities such as a retail mall in 2023.

Tokyu Land Indonesia started sales in September 2019.

Toshio Kojima sales and marketing director of Tokyu Land Indonesia said prices ranged from 1.5 billion rupiah ($107,915) for a studio or one-bedroom unit to 6.3 billion rupiah for a 3-bedroom apartment. Buyers were from the age range of 30 to 60 years, he said.