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Property prices in Indonesia

Hello everyone,

Finding affordable housing in Indonesia is number one priority for newcomers. Tell us more about the estate market in your district/city/region.

What are the most desired places to live? What are the most affordable ones? What is the average cost of a rented flat? And what is the average sale price for an appartment or a house? Could you tell us more about local real estate policies/procedures? What about property tax or residency tax in Indonesia?

What about you? Where do you live now? Is it a place you would recommend?

Thank you in advance for your clarifications.

Priscilla

Prices in Indonesia vary wildly from extremely cheap to stupidly expensive.

The first note should be foreigners are not able to legally buy land in Indonesia, but they can buy non-landed property such as in a block of flats.

Jakarta and surrounding areas are terrible, prices being for the rich only, and those prices are on the rise despite the economic slowdown that we're seeing at the moment.
There is some light at the end of the tunnel at the moment in so much as the banks have made lending much harder (Especially buy to let), meaning the builders are feeling the squeeze a little and SOME prices are going down. Of course, these prices are still crazy, just not quite as crazy.
Basically, the vast majority of Indonesians can't even think of buying property in or near Jakarta at the moment.
Small places have lower prices, meaning the locals can still buy them.
Small towns and villages still have 'normal' prices so the property market is fine. These 'normal' prices would be considered extremely cheap by most western expats.
Apart from the vast majority of expats in Indonesia being unable to legally buy, you really don;t want to at these inflated prices as you'll probably lose a lot of money if you do.
There is another issue. some of the newer places are really badly built and are suffering serious problems because of the poor quality materials used and the shoddy workmanship.
One other note, there is so much new property empty, ditching the home you bought is hard work, more so because estate agents up the price to what they think someone will be stupid enough to pay, not what it's worth.
A fine example is the badly maintained house in front of mine. The owners want RP1.6 billion for a house that isn't very big but is in need of a new roof and new windows.
No hope at all, but it sits there empty, as it has sat there for three years, because someone has told the owners that's what it's worth.

As rental prices are more of a concern to expats here, they deserve a mention.
Outside Jakarta in popular expat places such as BSD and Bintaro you'll easily get a 2 or 3 bed house for between 20 and 30 million/year.
That's with security and some trimmings, sometimes including an estate swimming pool.
Jakarta rents are far higher, but small town rents start at Rp3 million/year and work up from there.

My rent is stupidly expensive and hopefully wont keep climbing. Housing in my area is limited and not very good and expensive with 30% or more deposits required if you need a new a place. It is really hard to move and there is no sign of this changing.

There is a slight hope now, but not yet in much of greater Jakarta.
Since the bank of Indonesia clamped down on buy to let loads, a lot of property companies are noticing a downturn, meaning prices in some areas are falling.
The low retail business figures are going to take their toll in a very short time as well.
Shops are closing down everywhere and the massive number of brand new empty shop houses must have hit the builders' profits.
My wife keeps after me to buy a place so she's been not very subtle about telling me how prices are falling in many places.
Jakarta will be last on the list.

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