Jakarta property prices rising, while rental yields continue to fall

Jakarta property prices rising, while rental yields continue to fall

Jakarta property prices rising, while rental yields continue to fall

Last Updated: Apr 07, 2015
JAKARTA – Apartments COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 139,450 915 7.87% 2,789 18.30
80 sq. m. 213,360 1,698 9.55% 2,667 21.23
120 sq. m. 323,040 2,395 8.90% 2,692 19.96
250 sq. m. 749,500 4,769 7.63% 2,998 19.07
BALI – Villas
150 sq. m. 241,200 1,064 5.29% 1,608 7.09
350 sq. m. 663,950 2,034 3.68% 1,897 5.81
Districts researched:
Central Jakarta: Menteng
South Jakarta: CBD, Cilandak/Cipete, Golden Triangle (formed by Jl. Sudirman, Jl. Gatot Subroto, and Jl. Rasuna Said), Kebayoran Baru, Kemang, Kuningan, Sudirman, Pondok Indah,
Bali: Canggu, Jimbaran, Kerobokan, Kuta, Legian, Nusa Dua, Oberoi, Seminyak, Sanur
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Higher end apartments in Jakarta continue to enjoy a boom, with demand high. Prices have been rising significantly over the past three years, and they are now priced at around US$ 2,700 to US$3,400 per square metre (sq. m.). Rental yields have therefore fallen significantly to around 7% to 8.4%, down from around 10% to 13% three years ago.

The disadvantage of buying in Jakarta, for foreigners, is complex legalities and high transaction costs.

Villas on Bali are attractively priced at around US$1,400 to US$2,300 per sq. m.. On Bali, lower rental yields can be earned, at from 2.3% to 6.3%.

Indonesia’s laws on foreign ownership were expected to be relaxed this year, but that now appears unlikely.

Round trip transaction costs are high in Indonesia

http://www.globalpropertyguide.com/Asia/Indonesia/Rental-Yields

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s