Why invest in Office Building Projects?

why invest in office building

Over-Supplied Apartments Units

Supply of apartments in Surabaya has been increasing rapidly for the past few years. The total of apartment units in the city have reached 27,000 units in 2016 and is estimated to reach 60,000 units in the year of 2020. The occupancy rate of apartment, on the other hand, has decreased since 2016, causing both apartment selling and renting market prices to fall.

Longer Lease Period and Higher Rental Price

The leasing period for offices are normally longer than that of residentials. Leasing period is minimum 5 years for office with a higher chance to extend while leasing period for residential projects are mostly around 6 months to a maximum of 2 years. Additionally, for properties with the same value, rental price for office is likely to be higher than that of residential projects, thus creating a higher rate of return for investors.

The Number of Businesses Coming to Surabaya

There are a lot of business developments from Jakarta, such as Lazada, Go-Jek, Uber, and Grab that just opened a branch in Surabaya. The demand for office space is predicted to increase rapidly and keep increasing in the next few years. This means now is the ideal time for investors to put their money in office projects so that they can receive higher return in the near future.

Gain More Leverage with Easy Payment Terms

There are many varieties of payment terms offered to investors. Starting from cash payment, 36 months, and 60 months. In addition, developer also provides a special payment term called the Balloon Payment, where investors can pay less than 1% per month for the first year, continue with the second down payment until the 40th month, and complete the payment through bank (KPO).