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Property prices in Jakarta to rise as expats are permitted to buy homes
Property prices in Jakarta to rise as expats are permitted to buy homes
| Published: | 23 Nov at 9 AM |
The price of property in Indonesia’s capital is set to rise as new rules are introduced that could allow expats to purchase real estate. The government has indicated that it would like to open up the property market to foreigners in Jakarta, although there are still likely to be restrictions on the ability for non-natives to acquire land.
Around 45,000 foreign workers are believed to work in the capital and the price of renting a property has risen by close to 15 per cent already in 2012. The authorities have now introduced a new regulation that permits foreigners to apply for a Building Ownership Certificate.
Fraser & Co’s head of operations in Asia, Neil Jensen, said the law in Indonesia at the moment is comparable to that in Thailand where ownership of land or property by a foreigner has to be through a local national such as a friend or a spouse. He added that if the new rules are introduced they are likely to apply to specific areas such as Jakarta, Batam and Bali and that ownership by foreigners is likely to be limited to 40 per cent of the property.
Associate research director at Colliers International, Ferry Salanto, said allowing foreigners to buy property in Indonesia would mean they will contribute more to the country’s finances through taxes.
It is still difficult to obtain a mortgage in Indonesia, but if the rules are changed the price of property, especially in the centre of the capital, is likely to skyrocket.
Around 45,000 foreign workers are believed to work in the capital and the price of renting a property has risen by close to 15 per cent already in 2012. The authorities have now introduced a new regulation that permits foreigners to apply for a Building Ownership Certificate.
Fraser & Co’s head of operations in Asia, Neil Jensen, said the law in Indonesia at the moment is comparable to that in Thailand where ownership of land or property by a foreigner has to be through a local national such as a friend or a spouse. He added that if the new rules are introduced they are likely to apply to specific areas such as Jakarta, Batam and Bali and that ownership by foreigners is likely to be limited to 40 per cent of the property.
Associate research director at Colliers International, Ferry Salanto, said allowing foreigners to buy property in Indonesia would mean they will contribute more to the country’s finances through taxes.
It is still difficult to obtain a mortgage in Indonesia, but if the rules are changed the price of property, especially in the centre of the capital, is likely to skyrocket.
