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Residential properties in Indonesia commonly include two types: subsidized and commercial homes. The two are not primarily differentiated by construction quality, but by how they are provided. Simply put, a commercial house is a home sold at a market-based price and through market mechanisms.
If you want to understand the differences between the two more clearly, particularly when it comes to commercial properties, check out the guide below.
A commercial house is a home sold by a developer at a market-based price and through market mechanisms.
Therefore, the term “commercial” here refers to a type of housing based on its provision scheme. This is different from the term “commercial house” when referring to a building used for business activities, such as a shop house (ruko).
A subsidized house is a home whose price is reduced through government policies. The goal is to help people who have difficulty accessing adequate housing purchase a home at a more affordable cost. Therefore, purchases must be made through procedures in accordance with applicable regulations.
For commercial houses, you can purchase directly through the developer and a bank if you use a mortgage loan (KPR).
Note: The “commercial” label does not automatically mean that a house is luxurious, just as the “subsidized” label does not automatically mean that a house is poorly built or of low quality. These labels only indicate the respective housing provision and financing schemes.
To make it easier for you to identify commercial houses in the market, take note of the following characteristics:
For commercial houses, prices follow the selling price set by the developer. Meanwhile, subsidized housing is subject to a government-regulated maximum selling price. Therefore, developers must comply with the established limits.
For example, there are type 36, 45, 60, and 72 homes. There are also one- and two-story houses, as well as various land sizes.
Commercial housing does not necessarily offer all of these options. However, developers have greater freedom to determine product variations according to their target market, whether that means smaller, more affordable homes or larger homes with complete facilities, and so on.
Commercial houses are not part of the government-subsidized mortgage scheme, which provides benefits such as reduced interest rates and down payments. Therefore, you will be subject to the terms of commercial bank mortgages, including interest rates, down payments, loan tenors, and other applicable fees.
Developers generally offer the following types of commercial houses:
A landed house is a home built on its own plot of land. Landed houses can be one or two stories. When sold through market-based mechanisms, these landed houses fall into the commercial housing category.
These are still landed houses, but row houses are built closely together in a single row. Walls between units may be shared. As a result, less land and building space are required.
This type of housing is quite common in commercial housing developments with more affordable prices or in areas with limited land.
Homes within an area are developed in several groups or “clusters,” each with its own access and facilities. For example, a cluster may consist of 50 houses with one entrance gate, a park, internal roads, and other facilities.
On the other hand, there are high-end commercial houses. Their general characteristics include:
Larger land and building sizes,
More exclusive locations,
Higher construction specifications,
More complete area facilities, or
Custom-designed homes.
As a result, their prices can reach billions of rupiah.
Another type is houses located in urban areas with relatively limited land. They are generally smaller in land size but located close to activity centers, public facilities, offices, shopping centers, or transportation. They may take the form of row houses with relatively uniform designs.
So, which is better: a subsidized or commercial house?
To answer this, you should first compare the two and then determine which option is more suitable for you. After all, each choice has its own advantages.
Still related to the previous points, here are several advantages and disadvantages of commercial houses that you can consider before buying.
You can find a wide range of house types, land sizes, building sizes, number of bedrooms, designs, and residential concepts.
Developers have greater freedom to offer various home features and specifications.
Homes can be built in various areas, including strategic locations that are not part of subsidized housing programs. This means you have more options if you have specific considerations regarding access to work, public facilities, or the surrounding environment.
You do not have to meet income limits or homeownership requirements like those under subsidized housing programs.
Because prices follow market conditions and do not receive government subsidies, commercial house prices and monthly installments can be relatively high.
Mortgage interest rates must be carefully considered, especially the interest terms after the fixed-rate period ends, as changes can affect the size of your monthly installments.
In addition to monthly installments, there are also costs such as electricity, water, neighborhood fees, taxes, maintenance, furniture, and potential renovation costs. For example, a house priced at IDR 1 billion does not mean you only need to prepare exactly IDR 1 billion.
As you have seen, commercial houses also come with their own drawbacks. Nevertheless, units at Florence Village in Jakarta Garden City can be a more advantageous option.
Although located in an already developed area, this latest commercial housing development by PT Modernland Realty Tbk. is marketed starting from around IDR 900 million. At this price, you can own a spacious two-story house with 3 bedrooms and 3 bathrooms for the whole family.
In addition, you can access facilities that make everyday activities more convenient, such as:
AEON Mall,
IKEA,
Global Mandiri School,
SIS Singapore Intercultural School,
Mayapada Hospital East Jakarta,
And many more.
Therefore, at JGC, a commercial house offers an affordable option without compromising residents’ comfort or the property’s future investment prospects.
If this is the type of home you have been looking for in East Jakarta, contact us to view the show unit and choose your preferred location.
