Jakarta's rental yields are moderate to attractive
Residential Valuation Specialist | July 14, 2019
|Last Updated: Jul 14, 2019|
|JAKARTA - Apartments||COST (US$)||YIELD (p.a.)||PRICE/SQ.M. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|50 sq. m.||139,350||604||5.20%||2,787||12.07|
|85 sq. m.||212,075||1,359||7.69%||2,495||15.99|
|120 sq. m.||311,400||1,840||7.09%||2,595||15.33|
|185 sq. m.||488,585||2,694||6.62%||2,641||14.56|
|50 sq. m.||1,107,150||3,729||4.04%||2,013||6.78|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Jakarta: Cilandak, Cipete, Kebayoran Baru, Menteng, Pondok Indah, Puri Indah
Bali: Canggu,Kuta, Seminyak and Ubud
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
Gross rental yields in Jakarta - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - are quite attractive, though significantly lower than they were 4-5 years ago. Gross rental yields are an important consideration even for those who do not intend to become landlords, because a high rental yield indicates that the property market is reasonably priced.
Jakarta´s property market now looks well-priced.
Higher end apartments in Jakarta are now priced at around US$ 2,500 to US$2,800 per square metre (sq. m.). Rental yields on these apartments are now around 5.2% to 7.7%.
The disadvantage of buying in Jakarta, for foreigners, is complex legalities and high transaction costs. However, changes in the law are in process which should make things much easier.
Villas on Bali attractively priced at around US$2,000 per sq. m.. On Bali, lower rental yields can be earned, at an average of around 4.0%. As always, it must be stressed that there is a wide range, depending largely on location.
Round trip transaction costs are high in Indonesia. See our Property transaction costs analysis in Indonesia and Property transaction costs in Indonesia, compared to the rest of Asia.