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Makassar: the next big thing in the property sector

  • The Jakarta Post

    The Jakarta Post

| Mon, June 29, 2015 | 09:35 am
Makassar: the next big thing in the property sector In progress: An apartment is under construction in Makassar, South Sulawesi. The rapid growth of the city continues to attract large-scale developers to build property projects in the region.(Antara)" border="0" height="315" width="510">In progress: An apartment is under construction in Makassar, South Sulawesi. The rapid growth of the city continues to attract large-scale developers to build property projects in the region. (Antara)

The capital city of South Sulawesi is fast becoming popular in the eyes of many of Indonesia’s big property developers.

Makassar is to eastern Indonesia what Jakarta is to western Indonesia – namely, a center for trade and industry.It is considered the main gateway to the eastern part of the country. Among the big names that play their part in developing the eastern part is Ciputra Group.

Through its subsidiary PT Ciputra Surya, the group is working together with PT Yasmin Bumi Asri to form a joint venture, Ciputra Yasmin, to develop CitraLand City Losari Makassar.

It is not just any ordinary property project. It is a new zone designed to stimulate and speed up economic growth and to create a new business district in the eastern region.

The plan is to have Makassar be a hub for business, industry and services, so that it can become a second major power in the country after the capital of Jakarta in the western region.

CitraLand City Losari Makassar will be developed on top of 107 hectares of reclaimed land. With an estimated 157 ha in size, the land is part of a larger mega project called Center Point of Indonesia (CPI).
According to Harun Hajadi, president director of PT Ciputra Surya, the Gross Development Value (GDV) of CPI is estimated at around Rp 30 trillion (US$2.3 billion).

“The GDV itself excludes the reclamation value. Developing the reclamation alone will amount to an estimated Rp 3.5 trillion,” Harun said.

Some 60 hectares of land in the CitraLand City Losari Makassar area will be dedicated to making a new central business district (CBD) in Makassar.

Based on data from kompas.com, the CBD area contains the Ciputra World Makassar (CWM) mega project that is composed of the Ciputra Twin Towers, a number of apartments, a shopping center and five-star hotels.

Harun estimates that construction on the CWM in 2018 will begin once the reclamation process is complete. Right now, the CWM is still currently in the design phase.

On the extra land, there will be a modern, integrated sector composed of residential and commercial areas (shopping centers, hotels, apartments, offices and other buildings), higher education centers, recreational parks, environmental parks and marinas.

The person in charge of the CPI sector, Soeprapto Budisantoso, said that this CPI project was part of a larger master plan for a Global Integrated Business Sector, which will be 1,000 ha in size.

Based on a cooperation agreement between the Provincial Government of South Sulawesi and PT Yasmin Bumi Asri, some 50 ha of this reclaimed land will be handed over to the South Sulawesi administration out of the total 157 hectares of CPI land.

“In the area that is part of the South Sulawesi Provincial Government, there will be a wisma, a grand mosque and a museum park. Our responsibility is only to hand over the reclaimed land and have it ready for construction,” Harun said.

PT Ciputra Surya is certain to start construction on the CWM mega project at Losari Beach in Makassar, South Sulawesi, in 2018 after reclamation processes are complete.

Despite ensuring that the construction process will begin in 2018, Harun said that the CWM was still in the design phase. The gross development value (GDV) of CWM will only be known after calculations of the Gross Floor Area (GFA) are complete.

The first year of development, which will involve land expansion, will cost Rp 1 trillion. “We expect this land expansion to be completed by 2017,” Harun said.

Maintenance matters: Construction workers are cleaning the windows of a building in Makassar as part of building management’s maintenance program. (Antara)

In progress: An apartment is under construction in Makassar, South Sulawesi. The rapid growth of the city continues to attract large-scale developers to build property projects in the region. (Antara)

The capital city of South Sulawesi is fast becoming popular in the eyes of many of Indonesia'€™s big property developers.

Makassar is to eastern Indonesia what Jakarta is to western Indonesia '€“ namely, a center for trade and industry.It is considered the main gateway to the eastern part of the country. Among the big names that play their part in developing the eastern part is Ciputra Group.

Through its subsidiary PT Ciputra Surya, the group is working together with PT Yasmin Bumi Asri to form a joint venture, Ciputra Yasmin, to develop CitraLand City Losari Makassar.

It is not just any ordinary property project. It is a new zone designed to stimulate and speed up economic growth and to create a new business district in the eastern region.

The plan is to have Makassar be a hub for business, industry and services, so that it can become a second major power in the country after the capital of Jakarta in the western region.

CitraLand City Losari Makassar will be developed on top of 107 hectares of reclaimed land. With an estimated 157 ha in size, the land is part of a larger mega project called Center Point of Indonesia (CPI).
According to Harun Hajadi, president director of PT Ciputra Surya, the Gross Development Value (GDV) of CPI is estimated at around Rp 30 trillion (US$2.3 billion).

'€œThe GDV itself excludes the reclamation value. Developing the reclamation alone will amount to an estimated Rp 3.5 trillion,'€ Harun said.

Some 60 hectares of land in the CitraLand City Losari Makassar area will be dedicated to making a new central business district (CBD) in Makassar.

Based on data from kompas.com, the CBD area contains the Ciputra World Makassar (CWM) mega project that is composed of the Ciputra Twin Towers, a number of apartments, a shopping center and five-star hotels.

Harun estimates that construction on the CWM in 2018 will begin once the reclamation process is complete. Right now, the CWM is still currently in the design phase.

On the extra land, there will be a modern, integrated sector composed of residential and commercial areas (shopping centers, hotels, apartments, offices and other buildings), higher education centers, recreational parks, environmental parks and marinas.

The person in charge of the CPI sector, Soeprapto Budisantoso, said that this CPI project was part of a larger master plan for a Global Integrated Business Sector, which will be 1,000 ha in size.

Based on a cooperation agreement between the Provincial Government of South Sulawesi and PT Yasmin Bumi Asri, some 50 ha of this reclaimed land will be handed over to the South Sulawesi administration out of the total 157 hectares of CPI land.

'€œIn the area that is part of the South Sulawesi Provincial Government, there will be a wisma, a grand mosque and a museum park. Our responsibility is only to hand over the reclaimed land and have it ready for construction,'€ Harun said.

PT Ciputra Surya is certain to start construction on the CWM mega project at Losari Beach in Makassar, South Sulawesi, in 2018 after reclamation processes are complete.

Despite ensuring that the construction process will begin in 2018, Harun said that the CWM was still in the design phase. The gross development value (GDV) of CWM will only be known after calculations of the Gross Floor Area (GFA) are complete.

The first year of development, which will involve land expansion, will cost Rp 1 trillion. '€œWe expect this land expansion to be completed by 2017,'€ Harun said.

Maintenance matters: Construction workers are cleaning the windows of a building in Makassar as part of building management'€™s maintenance program. (Antara)Maintenance matters: Construction workers are cleaning the windows of a building in Makassar as part of building management'€™s maintenance program. (Antara)

After the Ciputra Group officially became the strategic partner of PT Yasmin Bumi Asri in the jumbo development of Center Point Indonesia (CPI) in the Losari area, it is now Lippo Group'€™s turn.

This developer has already had a portfolio for the new city of Tanjung Bungan with PT Gowa Makassar Tourism Development and is in the middle of developing the multifunctional project of St. Moritz Makassar.

According to the chief of marketing at Lippo Homes, Jopy Rusli, Makassar is in demand because it is a gateway to the eastern sector of Indonesia. Makassar is also a center for trade outside of Jakarta. This trade area is comprised of mining, fisheries, agriculture and industry.

'€œThis is part of our strategy of going to the east, with Makassar being the center. Aside from this, we also have a project in Manado with Monaco Bay,'€ Jopy said.

He added that economic growth in Makassar exceeds the national average. According to the Central Statistics Agency (BPS), economic growth in Makassar reached 9.23 percent in 2014.

The same goes for the ever-growing population. With 1.8 million residents, Makassar is a big market that shows a lot of promise.

'€œWe will add others to our portfolio. By the end of December 2015, we will launch a new waterfront project,'€ Jopy further said.

Lippo Group'€™s latest project will consist of residential and commercial areas with a composition ratio of 50:50. The group has acquired 28 ha of land.

Its desire to capitalize on the city of Makassar is in part inspired by the success of the St. Moritz Makassar. Since it was opened in 2013, sales of the St. Moritz super block in Panakukang exceeded demand of 110 percent.

During the first phase, Lippo only marketed the first of its three apartment towers with 286 units being offered, priced at Rp 700 million per unit, with units ranging in size from 35 to 70 to 105 square meters in size.

'€œMarket enthusiasm is very good. More consumers bought St. Moritz apartments with cash. Only a few of them used apartment ownership credits. That is why we are confident with the Makassar market,'€ Jopy said.

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