Buying off-plan property in Indonesia has many benefits, as you don’t have to involve yourself in constructing your property. With the proper research and guidance from reputable developers, investing in off-plan properties can be a smart move. The pricing and costs of off-plan properties in Indonesia are not as high as many might expect. In this article, you’ll find an overview of the prices of off-plan property in Indonesia.
What is off-plan property in Indonesia?
Off-plan property is a property for sale before or during its construction. These units or buildings are still in the construction phase or are in the planning stages. In some countries, these properties are called “pre-selling units”.
The average price of off-plan property in Indonesia
The average price of off-plan property in Indonesia is between IDR 1.5 billion ($97,500) to IDR 7 billion ($455,000). But like Indonesian land and house prices, the actual cost of the off-plan property mainly depends on the location and property type. Off-plan property in Bali tends to be more expensive than in Lombok—the same counts for off-plan property in Jakarta, which is more costly than in Surabaya.
Property prices in Indonesia
Property prices in Indonesia vary depending on the location and property. The average house price in Jakarta is IDR 18.2 million ($1,183) per square meter, while in Bali, houses cost about IDR 14.7 million ($956) per square meter. You can find cheaper options in Surabaya or Yogyakarta, where homes can cost IDR 10.2 million ($663) per square meter.
On the other hand, property owners can earn a better rental yield by renting out property in Bali, as the average rent price is IDR 85.1 million ($5,532) per year. In contrast, the average rent price in Yogyakarta is IDR 36.8 million ($2,392) per year.
| Average buy price | Average price/sqm. | Average rent price | |
|---|---|---|---|
| House in Bali | IDR 2.4 billion ($156,000) | IDR 14.7 million ($956) | IDR 85.1 million ($5,532) |
| House in Jakarta | IDR 3.4 billion ($221,000) | IDR 18.2 million ($1,183) | IDR 88.7 million ($5,766) |
| House in Yogyakarta | IDR 709 million ($46,085) | IDR 10.2 million ($663) | IDR 36.8 million ($2,392) |
| House in Surabaya | IDR 2.4 billion ($156,000) | IDR 14.2 million ($923) | IDR 58.9 million ($3,829) |
Benefits of buying off-plan property in Indonesia
There are many benefits of buying off-plan property in Indonesia.
Benefit 1: Off-plan property is often cheaper
Since the property is still undeveloped, off-plan properties usually sell at a lower price. It is common for off-plan properties to sell up to 30% below market value than when sold after construction. The introductory prices help attract an investor to purchase units or buildings.
Benefit 2: Flexible payment plans
Another advantage of off-plan properties is that most developers offer flexible payment schemes. Unlike completed properties, where buyers pay the total purchase price, investors of off-plan properties can pay in installments over some time. It lessens the burden of payment and makes it easier for buyers to manage their finances.
Benefit 3: Possibility to customize the property
In most cases, developers allow investors to customize their property, especially when you buy off-plan properties before they even start construction. Buyers can select units with their preferred view and modify the unit’s layout.
Buy off-plan property in Indonesia with Own Property Abroad
Are you looking to buy off-plan property in Indonesia? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey. Thanks to our extensive knowledge and local experience in the Indonesian market, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.
With our expert team, you won’t have to navigate the complexities of the Indonesian market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!
Conclusion
Real estate investments require making intelligent decisions that will save you money and time. Purchasing an off-plan property in Indonesia offers a lot of advantages. It requires less planning, mainly if you are unfamiliar with local development projects. Off-plan properties require commitment, so we recommend working only with esteemed developers or hiring a lawyer to help review the terms and conditions to ensure your investment is worthwhile.
Frequently Asked Questions (FAQs)
Can foreigners buy property in Indonesia?
Yes, foreigners can buy property in Indonesia through leasehold, Hak Pakai (HP), Hak Guna Bangunan (HGB), their passport, or by starting a PT PMA.
Can you live in Bali if you buy a house?
You can live in Bali if you buy a Hak Pakai house and apply for Indonesia’s Second Home Visa, which allows you to stay in Bali for ten years. To obtain this visa, foreigners need to invest at least IDR 5 billion ($325,000) in Indonesian real estate, which can, in this case, only be owned through Hak Pakai.
Are off-plan properties cheaper?
Off-plan properties are generally cheaper because the building still needs to be completed. Developers often offer discounted rates to attract investors.
Is it worth buying a villa in Bali?
Yes, it is worth buying a villa in Bali. Given the growing tourism industry and the potential for Bali’s real estate market, it offers a great vacation spot and a potential investment opportunity. Purchasing a villa in Bali can provide a steady stream of rental income.
One Response
I am currently investigating buying a villa off the plans and like the southern peninsula. What are you services and costs? For-instance do you have the capacity to assess projects and developers track record? Are you a notary and/or offer notary services. Do you sell properties or have vested interests in certain projects? Do you help with lease agreements?
Thanks
Dave