Developers targeting university students

Numerous property developers have begun to look towards outskirts in proximity to campuses as they target university students for their projects.

The booming middle class of Indonesia has led to more families being able to send their children to respected universities at home.

Favoured universities are concentrated within Java, including the University of Indonesia (UI) in Depok, West Java; the Bogor Institute of Agriculture also in West Java; the University of Gadjah Mada, Yogyakarta, Central Java; the Surabaya Institute of Technology, East Java; the Bandung Institute of Technology; and Padjadjaran University – both situated within Bandung of West Java. 

Many students arrive from throughout the different islands of Indonesia, residing close by their chosen campus.

Previously, boarding homes were popular amongst students, owing to their affordability. But with their parents’ increasing purchasing power, many have turned to seeking apartments.

Responding to the growing trend and motivated by the scarcity of land within urban areas, such as in Jakarta, numerous property developers have shifted to outskirts or secondary cities to develop, with the university students being the prioritised target. 

Adhi Persada Properti (APP) developers is experienced in targeting university students within cities beyond Jakarta. The company functions the Taman Melati Dinoyo apartments, upon 5,035 square metres of land in front of East Java’s Malang Muhmmadiyah University. 

R. Pulung Prahasto, APP’s development and sales director, claims Jakarta, particularly in the North, South and West regions, are dominated by apartments and residential area projects, with less space for new projects.

Subsequently, land price is high, therefore property developers now only develop apartments for high-end buyers.

However, there are still opportunities to develop apartments for the middle class beyond Jakarta, owing to relatively affordable land prices there.

Ipuk Nimpuno, the APP General Director, explained that the company was targeting university students as vertical living has become a rising trend amongst the younger generation. This is as students occupy apartments nearby Margonda which is not far from the UI. 

The developer group also functions the Grand Dhika Keputih apartments, upon 12,900 square metres of land nearby East Java’s Surabaya Institute of Technology.

APP are currently constructing the Grand Taman Melati II apartment in the Margonda, Depok area. Close by the renowned UI campus alongside other private universities following completion of the Grand Taman Melati I. 

APP revealed almost 100% of apartment units at the Grand Taman Melati I have been sold.

In the meantime, construction of the Grand Taman Melati II has begun its final phase. Both apartments are upon land spanning 4,900 square metres, part of a superblock project where office buildings, shop houses as well as kiosks have also been built. This superblock will soon be accessible by the first part of the Cinere to Jagorawi toll road.

APP also intends to develop an apartment in West Java’s Jatinangor, nearby the Padjajaran University campus.

Similarly, property giant PT Lippo Karawaci are also seizing the opportunity to develop vertical living projects for university students beyond Jakarta.

At present, the developer functions the Park View Condominiums of Depok. The condominium is assimilated with the Depok Town Square shopping mall, in proximity to the University of Indonesia campus. The 23 storey apartment, upon 2.4 hectares of land, is also situated nearby Margonda city’s commercial centre and the Pondok Cina train station.

The Park View offers 450 condominiums, at 10 to 25 units per storey, at relatively affordable prices. Condominiums vary in types from a 30 square metre studio type with two bedrooms to a 93 square metre unit with three bedrooms. 

The condominium’s capital appreciation can reach 12% annually as rent can reach 10 to 15% per year, according to land and housing CEO, Ivan Budiono.

Yogyakarta is commonly labelled the city of students and is also a profitable region for developers looking into developing apartments for university students. This explains why property developer Hutama Karya Realtindo, alongside other developers, have decided to develop apartments for university students in the city.

Hundreds of thousands of new university students from different regions move into Yogyakarta every year and are targeted as a captive market for Hutuma Karya Realtindo’s apartments.

The developer has constructed an apartment named the H Residence, consisting of 300 units with prices starting from Rp300million (US$25,882). 

The apartment, which was established at the end of last year, has an occupancy rate of 25%.

In order to appeal to more tenants, the Hutuma Karya Realtindo has developed several facilities, such as shopping and community centres near the apartment. 

The general director of Karya Cipta Sukses Selaras, which develops apartments for university students in Yogyakarta, revealed that more university students were opting for apartments rather than boarding homes as apartments are more convenient and comfortable. This is as they are more spacious and quiet.