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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.

Hi Fred thanks for the information it was very interesting reading  .As  I am thinking of buying a leasehold for 25 years at Canngu or nearby because I surf .  I am 55 years old so I will apply for a Kitas Visa I think . I was looking at places around the $200 thousand AUD price tag . I have seen a few beautiful villas , fully furnished and with pools . But I have noticed they have been on the market for a while and they have dropped there prices . Fred for $200 thousand AUD would I would be greedy negotiating a cheaper price ? As I am not sure about buying leaseholds in Bali and I don,t want to offend my potential future Landlord or owner of the land which the villa is built on . Thanks Geoff .

For Bali we need Ubudian. He's lived there for years and knows the place well.
Bali is very different to Java

Thanks Fred .

It's not the house prices that are stupid.  It's the wrong choices people made.  Here I am having such a beautiful Villa w every Western comfort and conveniences; just because it sounds like as though it is in the outskirt of Jakarta, people don't realise it's only 20 mins from Pondok Indah, 30 mnts from Kemang, 10 mnts from the office building areas such as Jalan Simatupang w supermarkets, restaurants nearby if need be.
So, it's up to the people to choose.  But everyone can be like sheeps.  They follow what others do without making proper evaluation of advantages and disadvantages of living in a house or an apartment.  Unless a single person who wants to stay within the Business District Centre and in an apartment, then my house wouldn't be suitable.
But if you want to be more adventurous by living more traditional Indonesian with Western amenities and comfort, then you can always contact me.
If you are single, perhaps you could offer your friends to share the house as I have 4 bedroom/suite-like with ensuite bathroom each or 5 if you would like to convert the pool house into another bedroom as it also has its own bathroom there.
Just my opinion.

Whilst the above sounds a lot like a very sneaky advert, the content is pretty accurate.
Transport in Jakarta is a bit messy (but improving), so being near to your work is essential, but 'near' doesn't always mean in distance.
If you're on one side of a Tansjakarta route and your office is on the other side of the same route, it could be considered very near.

The other thing is the stuff about expat housing. Last I heard, expats were essentially the same as the rest of Indonesia's residents but are commonly seem as cash machines estate agents can convince to rent a house at a crazy price because it has a swimming pool and is illegally priced in US$.

Living in a normal guarded estate is perfectly safe and you get to meet the people around you, so I strongly recommend forgetting the pool,  paying a lot less than the sheep mentioned above and using that cash to stuff your bank account a little more or going out enjoying yourself with the new mates you'll make when you meet the locals.

I live in Ubud and I recommend it. My place has a pool and views and it's expensive. So not suitable for everyone. Less expensive villas can be found in less nice locations.

Couldn't say one thing without the other so yes, it looks like a sneaky advert but it wasn't intended to.  But I understand your point.

Although I must add there are expats who would like to take advantage by living in contrast to their life style in their respective Western country where not every house has a swimming pool and a big secluded tropical garden.  Or they want to come and live like the are already living in the West or wherever, or they live by plunging themselves into an interesting one of a kind way of living as an expat in Jakarta.

Price is an important factor to my choice of places to live as I pay myself, all without a company to foot the bill.
I've looked at some of the 'expat' type places but didn't think much of them. They're silly money and most share an almost total isolation from anyone but better off Indonesians.
Those two reasons pretty much exclude all the places deemed to be expat housing.
Bintaro and BSD have far better prices, but Bintaro runs higher in general. A three or four bedroom there varies from 25 to 45 million/year and above, but you'll get the same in BSD for between 5 and 10 million a year less.
All the houses I've looked at are 'middle class' sort of places, all having security but none having a swimming pool on the estate.

There are hidden costs to a house. Much of Bintaro relies on the housing company for water supplies and that doesn't always come cheap, so watch out for that sort of thing when you choose where to live.
Also, check how much security and rubbish collections are going to cost you. Most are pretty reasonable, but I have been quoted the odd mad price.

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