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Indonesia: House Prices, Rents, and Rental Yields

Last Updated: Apr 25, 2008

Spectacular yields
on Jakarta apartments

Last Updated: Mar 30, 2009
JAKARTA - Apartments COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 62,950 707 13.47% 1,259 14.13
85 sq. m. 105,570 1,066 12.12% 1,242 12.54
120 sq. m. 154,440 1,588 12.34% 1,287 13.23
175 sq. m. 234,150 2,620 13.43% 1,338 14.97
BALI - Villas
200 sq. m. 294,200 n.a. n.a. 1,471 n.a.
500 sq. m. 649,000 n.a. n.a. 1,298 n.a.
Districts researched:
Central Jakarta: Menteng, Bundaran
South Jakarta: Jakarta Selatan, Sudirman, Kebayoran, Kemang, Pondok Indah, Cilandak/Cipete, Pesar Minggu,Golden Triangle (formed by Jl. Sudirman, Jl. Gatot Subroto, and Jl. Rasuna Said), CBD, and Kuningan
Bali: Oberoi, Saminyak, Legion, Kuta, Canggu, Kerobokan, Nasa Dua, Jimbaran, Sanur
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Apartments in Jakarta have always shown up in Global Property Guide surveys with pleasingly high rental yields.  We assume that, as in most 3rd world countries, housing is under-built relative to demand because of transaction costs, taxes, and various risks more present here than in the 1st world - and also because of the difficulty buyers have in getting fully financed, given the less than satisfactory legal and institutional protections for lenders.

Jakarta gross rental yields now average 12.84%.  The average buying price of a good-quality used apartment is US$1,282.

Bali villas are slightly more expensive, as might be expected.  We do not have enough data to report rental yields for Bali.

  

 

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