Thursday, April 14, 2011

Indonesian property is exceptionally good value

Statistics:-

Last Updated: April 30, 2010
JAKARTA - Apartments COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 74,500 815 13.12% 1,490 16.29
85 sq. m. 122,485 1,205 11.81% 1,441 14.18
120 sq. m. 165,720 1,572 11.38% 1,381 13.10
200 sq. m. 354,000 2,908 9.86% 1,770 14.54
BALI - Villas
150 sq. m. 216,900 858 4.75% 1,446 5.72
250 sq. m. 325,250 1,725 6.36% 1,301 6.90
400 sq. m. 470,800 1,976 5.04% 1,177 4.94
750 sq. m. 914,250 n.a. n.a. 1,219 n.a.
Districts researched:
Central Jakarta: Menteng
South Jakarta: Sudirman, Kebayoran, Kemang, Pondok Indah, Cilandak/Cipete
Golden Triangle (formed by Jl. Sudirman, Jl. Gatot Subroto, and Jl. Rasuna Said), CBD, and Kuningan
Bali: Oberoi, Seminyak, Legian, Kuta, Canggu, Kerobokan, Nusa Dua, Jimbaran, Sanur

Apartments in Jakarta continue to be very reasonably priced, at around US$ 1,500 per square metre. They also earn exceptionally good rental yields, at from 10% to 13%. The disadvantage of buying in Jakarta is complex legalities and high transaction costs.

Villas on Bali are also attractively priced. On Bali, lower rental yields can be earned, at around 5% to 7%.

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

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