What is the average property price in Indonesia?

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A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

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Daniel Rouquette 🇫🇷

CEO & Co-Founder at Villa Finder

Daniel Rouquette has deep expertise in Indonesia's short-term rental market, thanks to Villa Finder's strong presence across the country. As the CEO and Co-Founder of Villa Finder, he has been managing one of the largest villa rental platforms in the Asia-Pacific region since 2012. The company offers a carefully curated selection of over 4,000 villas in 28 destinations, ensuring guests receive high-end accommodation and tailored services.

What are the average prices for apartments, houses, and land in Indonesia?

Indonesia's property market shows distinct pricing patterns across different property types, with apartments being the most expensive per square meter in major cities.

Apartments in Jakarta's central business district cost IDR52.9 million per square meter ($3,270/m²), while South Jakarta commands IDR40.6 million per square meter ($2,510/m²). Non-prime areas in Jakarta drop significantly to IDR27.2 million per square meter ($1,680/m²).

Houses present a different picture, with median prices varying dramatically by location. Central Jakarta houses (91-150m²) cost around IDR3 billion, while North Jakarta houses of similar size average IDR2.8 billion. Surabaya offers better value with median house prices at IDR2.21 billion, typically ranging from IDR1-3 billion.

Land prices show the widest variation across Indonesia. The national average sits at IDR15.26 million per square meter ($930/m²), but this masks huge regional differences. Bali's Seminyak area commands IDR15 million per square meter ($915/m²), while North and West Bali can be as low as IDR1 million per square meter ($60/m²).

Entry-level properties in suburban areas or smaller cities start from approximately IDR150 million ($10,500), making them accessible to a broader range of buyers.

How much do property prices vary between Jakarta, Bali, Surabaya, and other major regions?

Regional price variations in Indonesia are substantial, with Jakarta and Bali commanding premium prices while secondary cities offer significantly more affordable options.

What is the price difference between central city areas and suburban or rural locations?

The price gap between central city areas and suburban or rural locations in Indonesia is dramatic, often ranging from 200% to 500% depending on the specific location and amenities.

Jakarta's central business district properties cost 2-3 times more than suburban areas within the same metropolitan region. For example, while central Jakarta apartments cost IDR52.9 million per square meter, outer Jakarta areas can drop to IDR15-20 million per square meter.

Bali shows even more extreme variations, with beachfront and tourist zones commanding premiums up to 500% higher than similar inland properties. Seminyak and Canggu properties cost IDR55-90 million per square meter, while North and West Bali rural areas can be purchased for as little as IDR1 million per square meter.

Surabaya demonstrates more moderate but still significant differences, with West Surabaya's premium areas costing IDR29.7 million per square meter compared to outlying suburban areas at IDR15-20 million per square meter.

It's something we develop in our Indonesia property pack.

How do property prices change based on surface size, from small apartments to large villas?

Property prices in Indonesia follow a clear progression from compact apartments to expansive luxury villas, with price increases often exceeding simple per-square-meter calculations due to premium features and locations.

Entry-level small apartments in Jakarta's non-prime areas, typically 30-50 square meters, cost approximately IDR500 million to IDR1 billion. These represent the most affordable entry point into Jakarta's property market.

Mid-range homes in Jakarta, ranging from 91-150 square meters, command prices between IDR2.7-3.8 billion. This size category represents the mainstream market for families and provides good balance between space and affordability.

Large luxury villas, particularly in Bali with 200-400 square meters, range from IDR7.6-9.9 billion. Beachfront properties of similar size can reach up to IDR25 billion, demonstrating how location premium compounds with size.

The luxury segment shows the most dramatic price scaling, where doubling the size can triple or quadruple the total price due to premium finishes, locations, and amenities that typically accompany larger properties.

What are typical purchase prices for entry-level, mid-range, and luxury properties?

Indonesian property market segments show clear price tiers that vary significantly by location, with each segment offering different value propositions for buyers and investors.

How much do additional costs like agent fees, taxes, and notary fees add to the total purchase price?

Additional costs when buying property in Indonesia typically add 8-12% to the total purchase price, representing a significant expense that buyers must factor into their budget.

Agent commission ranges from 2-5% of the property value, depending on the property type and location. Premium properties and complex transactions often command higher commission rates.

Government fees form a substantial portion of additional costs. Transfer tax is set at 5% of the property value, while registration fees add another 1-2%. Notary fees, which are mandatory for all property transactions, cost 1-2.5% of the purchase price.

Legal fees typically range from 0.5-1.5% of the property value, particularly important for foreign buyers who need specialized legal assistance. New properties incur VAT of 10-11%, though this can sometimes be reduced through developer incentives.

Annual property tax (PBB) ranges from 0.1-0.5% of the assessed value, representing an ongoing cost that buyers should consider when evaluating long-term ownership expenses.

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What are the current mortgage rates, requirements, and affordability compared to average incomes?

Indonesian mortgage rates as of September 2025 average 6.87%, with prime lending rates ranging from 5.25-5.75% following recent central bank rate cuts.

Mortgage eligibility requires applicants to be between 21-55 years old with 1-2 years of stable employment history. Banks typically require a debt-to-income ratio below 30-40% and a clean credit history. Down payments usually range from 20-30% of the property value.

The median gross salary in Indonesia is IDR12.5 million per month ($790), with Jakarta salaries commanding 20-30% premiums. This creates significant affordability challenges, particularly for city-center properties.

Most Jakarta city-center homes are out of reach for average local salaries without dual incomes or substantial down payments. A typical Jakarta apartment costing IDR2-3 billion would require monthly payments of IDR15-20 million, far exceeding most single incomes.

Secondary cities like Yogyakarta and Bandung offer better affordability ratios, where entry-level properties align more closely with local income levels and mortgage qualification requirements.

How have property prices changed compared to 1 year ago and 5 years ago?

Indonesian property price growth shows mixed patterns across different regions, with national averages remaining modest while specific markets experience significant appreciation.

Over the past year, national property prices increased only 0.9-1.07% year-over-year, reflecting relatively stable market conditions. However, Bali stands out with growth rates of 10-15%+ driven by tourism recovery and foreign investment.

Surabaya demonstrates consistent growth with 3-5% annual appreciation, making it one of the most reliable performers among major Indonesian cities. West Surabaya specifically shows the strongest growth within the metropolitan area.

Looking at five-year trends, Surabaya has appreciated 33-43% since 2020, representing strong long-term performance. Major urban areas have generally doubled in value over 10-year periods, though this varies significantly by specific location and property type.

Jakarta's central business district shows limited appreciation potential due to market saturation, while emerging areas continue to show stronger growth prospects for both short and long-term investors.

What are the forecasts for property prices over the next 1, 5, and 10 years?

Indonesian property market forecasts suggest modest national growth with regional variations continuing to drive investment opportunities through 2035.

Short-term forecasts for 2025-2026 project national property price growth of 2-3% annually, in line with economic growth and inflation rates. Bali and emerging markets like Batam are expected to significantly outperform this average.

Five-year projections through 2030 anticipate continued regional differentiation, with infrastructure-driven cities like Batam, Makassar, and Balikpapan benefiting from the new capital relocation project in Kalimantan. These areas could see 5-8% annual appreciation.

Ten-year forecasts through 2035 suggest major urban areas could see continued doubling patterns, particularly in well-connected secondary cities. The new capital development in Kalimantan is expected to create significant spillover effects in nearby regions.

Construction market outlook remains positive with large capital relocation projects driving development in previously secondary markets, creating new investment corridors across the archipelago.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Which areas are considered most expensive, up-and-coming, and most budget-friendly?

Indonesia's property market clearly segments into distinct categories based on current pricing and future growth potential, offering opportunities for different investment strategies and budgets.

The most expensive areas include Jakarta's CBD and South Jakarta, along with Bali's premium tourism zones like Seminyak, Canggu, and Uluwatu. These coastal and urban luxury markets command the highest prices but show limited appreciation potential due to market maturity.

Up-and-coming areas represent the best growth opportunities: Batam (Riau Islands) benefits from its proximity to Singapore and industrial development; West Surabaya shows consistent appreciation; Makassar, Balikpapan, and other Kalimantan cities will benefit from the new capital relocation project.

Budget-friendly options include suburbs and rural areas in Yogyakarta, North and West Bali (away from resort areas), and outlying areas in secondary cities. Yogyakarta's Sleman district offers particularly attractive entry-level opportunities with strong rental yield potential.

Emerging markets like Medan Setiabudi, Palembang Jakabaring, and Semarang Tembalang offer specialized opportunities, particularly for student housing and young professional markets in university towns.

It's something we develop in our Indonesia property pack.

What are the smartest investment choices for living, short-term rental, long-term rental, or resale?

Different investment strategies in Indonesia require targeted location and property type selection to maximize returns and minimize risks based on your specific goals.

For buyers planning to live in their property, focus on affordable, well-connected suburbs like Sleman (Yogyakarta), West Surabaya, Batam, or outer Jakarta areas. These locations offer good value, reasonable commute times, and growing infrastructure.

Short-term rental investors should target Bali hotspots including Canggu and Seminyak, which can generate yields up to 15-20%. Emerging destinations like Batam, Makassar, and West Surabaya also show robust short-term rental potential as tourism develops.

Long-term rental strategies work best in university towns like Yogyakarta and Bandung, which provide stable tenant demand. Industrial and port hubs like Batam, Makassar, and Balikpapan offer consistent rental demand from workers and expatriates.

For resale-focused investments, concentrate on cities with strong infrastructure development, particularly those benefiting from the new capital relocation project. Batam, West Surabaya, and Kalimantan cities offer the best long-term appreciation potential.

Diversified investors might consider a portfolio approach, combining stable rental income from secondary cities with growth potential from emerging markets.

How do Indonesian property prices compare with other major Asian cities?

Indonesian property prices remain significantly more affordable than most major Asian capital cities, while offering competitive rental yields and growth potential that make it attractive for regional investors.

Jakarta, Surabaya, Bali, and Batam properties cost substantially less per square meter than Singapore, Kuala Lumpur, Bangkok, Hong Kong, or Shanghai. This price differential creates opportunities for investors seeking entry into Asian property markets.

Bali's luxury segment rivals comparable tourist property markets in Thailand, particularly Phuket and Koh Samui, but often at lower entry price points. The tourism recovery has driven Bali prices closer to regional resort market levels.

Rental yields in Indonesia, especially in Bali (15-20%) and emerging markets like Batam (8-12%), generally exceed those available in mature Asian capital cities where yields often fall below 5%. This income advantage offsets some of the lower capital appreciation rates.

Infrastructure development and the new capital relocation project position Indonesia for stronger long-term growth compared to more mature markets, though this comes with higher political and economic risks that investors must consider.

It's something we develop in our Indonesia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Global Property Guide - Indonesia Price History
2. BambooRoutes - Average House Price Indonesia
3. Juwai Asia - Indonesia Property News
4. Statista - Indonesia House Prices by City
5. Own Property Abroad - Indonesia Land Pricing
6. Centrarium - Indonesia Property Prices
7. BambooRoutes - Surabaya Price Forecasts
8. BambooRoutes - Indonesia Investment Areas