Jakarta's rental yields are moderate to attractive

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
BALI VILLAS
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.
Districts researched:
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.