Is buying a property in Jakarta Selatan a good investment?

Last updated on December 20, 2023

Yes, the analysis of Jakarta's property market is included in our pack

If you've explored the modern offices and upscale living in South Jakarta, you may have envisioned calling this dynamic Jakarta district your sophisticated and cosmopolitan residence.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Indonesia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in South Jakarta?

Jakarta Selatan, or South Jakarta, stands out as a highly sought-after location for property buyers for several reasons, each contributing to its growing popularity in the Jakarta real estate market.

When considering the overall allure of Jakarta Selatan, it's essential to understand the unique attributes that set it apart from other areas, not only in Jakarta but also in broader real estate markets.

Firstly, Jakarta Selatan is known for its blend of modern amenities and lush green spaces. This area strikes a perfect balance between urban development and natural beauty, offering a serene yet cosmopolitan lifestyle.

Unlike other parts of Jakarta, which may lean more towards either urbanization or residential quietude, Jakarta Selatan provides a harmonious mix. This is particularly appealing to those who seek the convenience of city life without sacrificing the tranquility that comes with nature.

In addition, the area boasts some of the best educational and healthcare facilities in the city. For families and individuals prioritizing access to quality schools and hospitals, Jakarta Selatan is a top choice.

This aspect makes it stand out compared to other areas, where such amenities might not be as concentrated or of similar quality.

Another factor contributing to its popularity is the thriving business and commercial scene. Jakarta Selatan has become a hub for new businesses and startups, attracting professionals and entrepreneurs.

This economic vibrancy began to gain significant momentum in the early 2000s and has been on an upward trajectory ever since. It's not just a transient hype; the sustained growth and development suggest that Jakarta Selatan's appeal is here to stay.

The ongoing infrastructure developments and investment in the area back this claim, indicating a long-term commitment to growth and enhancement.

The type of people attracted to Jakarta Selatan is diverse, but they often share common interests and priorities. You'll find a mix of young professionals, families, expatriates, and business owners, all drawn by the area's unique blend of amenities, lifestyle, and opportunities. This diversity creates a dynamic and multicultural community, enriching the social fabric of the area.

However, it's important to acknowledge some of the challenges and weaknesses of Jakarta Selatan. The rapid development and popularity have led to issues like traffic congestion and a higher cost of living compared to other parts of Jakarta.

These factors can be significant drawbacks for some, particularly those who prioritize affordability and ease of commute.

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Why is Jakarta Selatan a nice place to live?

Jakarta Selatan offers a lifestyle and culture that's both vibrant and diverse, making it an attractive place to live for many.

The area is a melting pot of traditional Indonesian culture and modern, urban living, creating a unique atmosphere that's both exciting and comforting. The presence of numerous cafes, restaurants, and cultural spots ensures there's always something to do and explore.

The expat community in South Jakarta is notably significant, contributing to its cosmopolitan vibe. Areas like Kemang are particularly popular among expatriates, known for their international schools, diverse dining options, and a lively social scene.

This makes Jakarta Selatan not just a place to live but a space where diverse cultures and communities thrive together.

However, the cost of living in South Jakarta is relatively high compared to other parts of Jakarta. Accommodation, dining, and entertainment can be more expensive here, reflecting the area's upscale nature. But many find the cost justifiable given the quality of life and amenities available.

Safety is a priority in South Jakarta, and while it's generally considered safe, like any urban area, it's wise to be cautious and aware of your surroundings. The local authorities and community are quite vigilant, making efforts to maintain safety standards.

Speaking of amenities, Jakarta Selatan is home to some of the city's best facilities. Schools like the Jakarta Intercultural School and British School Jakarta cater to the international community, while top-rated hospitals such as RS Pondok Indah and RS Fatmawati offer excellent healthcare services.

For shopping and leisure, malls like Pondok Indah Mall and Gandaria City provide a plethora of shopping, dining, and entertainment options.

The infrastructure in South Jakarta is continually improving. Roads are generally well-maintained, and utility services like electricity and water supply are reliable.

Internet connectivity is also robust, catering to the needs of the modern, connected resident. These factors contribute significantly to the quality of life in the area.

Accessibility is another strength of Jakarta Selatan. It's well-connected to other parts of Jakarta, making commuting relatively straightforward.

The area is also conveniently located near major transport hubs, such as Soekarno-Hatta International Airport, which is accessible via toll roads, reducing travel time significantly.

Public transportation options, though not as extensive as in some other global cities, are available. The TransJakarta bus network serves the area, and there are several MRT stations that make commuting to central Jakarta faster and more convenient.

Additionally, the availability of online transportation services like Gojek and Grab makes getting around Jakarta Selatan and the rest of the city more manageable.

How much does it cost to buy real estate in South Jakarta?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Indonesia.

Buying a property in South Jakarta can vary significantly in cost, depending on several factors including the type of property, its location, and the current market trends.

in South Jakarta, you'll find a diverse range of residential properties, from apartments and houses to luxury villas. Each type caters to different needs and preferences, contributing to the area's appeal.

Apartments are particularly popular, especially among young professionals and expatriates, due to their convenience and the amenities they often come with, such as security, maintenance, and sometimes, shared facilities like pools or gyms.

Houses, including townhouses and standalone homes, are sought after by families looking for more space and privacy. Luxury villas, though less common, are coveted for their exclusivity and high-end features, attracting a wealthier demographic.

In terms of demand, apartments, particularly in high-rise buildings, are in high demand in South Jakarta. This trend is driven by the area's urban lifestyle, the convenience of living close to work and social amenities, and the relative ease of maintenance.

There's also a significant market for high-end residences, reflecting the area's status as an upscale neighborhood.

Regarding the property market, Jakarta Selatan has both new developments and resale properties. New developments are often modern, featuring contemporary designs and amenities, and cater to those looking for the latest in urban living.

Resale properties can vary in age and style, offering more choices in terms of architecture and character.

The price range for properties in South Jakarta can be quite broad. For a general idea, prices per square meter can range from relatively affordable to quite expensive, especially for new developments or properties in prime locations.

It's important to note that these prices have been subject to change over recent years, influenced by economic factors, market demand, and urban development.

Property values in South Jakarta have seen a gradual increase over the years, reflecting the area's growing popularity and development. Upcoming developments and city planning changes, such as new transportation links or commercial hubs, can further impact property values.

For instance, the introduction of new MRT lines or the development of new business districts can make certain areas more accessible and desirable, potentially driving up prices.

Predicting the real estate market's future in South Jakarta involves considering several factors, including economic trends, urban development plans, and demographic shifts.

Given Jakarta Selatan's continuous development and its status as a desirable location, it's reasonable to anticipate a steady increase in property values, particularly in areas with new infrastructure or amenities.

Factors that indicate a potential increase in value include ongoing infrastructure projects, the development of new commercial or leisure facilities, and improvements in transportation links.

These factors not only enhance the quality of life for residents but also make the area more attractive to new buyers and investors.

Where is the best area to buy a property in South Jakarta?

Choosing the best area to buy a property in South Jakarta really depends on what you're looking for in terms of lifestyle, property type, and budget.

Jakarta Selatan is diverse, with each neighborhood offering a unique atmosphere and range of properties.

For starters, let's talk about the atmosphere. Areas like Kemang are known for their vibrant, expat-friendly environment, bustling with cafes, art galleries, and international schools. It's ideal for those who enjoy a lively, cosmopolitan lifestyle.

On the other hand, areas like Pondok Indah offer a more upscale, serene environment, known for luxurious homes and well-maintained streets, suitable for families or those seeking a quieter, more suburban feel.

Property types also vary across Jakarta Selatan. In places like Kebayoran Baru, you'll find a mix of old colonial houses and new high-rise apartments, reflecting a blend of traditional charm and modern convenience.

In contrast, areas like Setiabudi are dominated by high-rise apartments and office buildings, catering to professionals who prefer living close to their workplace.

Prices, as expected, vary significantly. Upscale areas like Pondok Indah and Senopati are on the higher end of the price spectrum, owing to their luxurious properties and prime location.

More affordable options can be found in areas like Cilandak or Jagakarsa, where the atmosphere is more laid-back, and properties are more moderately priced.

For those looking for up-and-coming areas, places like Pejaten and Kalibata are gaining attention. These areas are becoming more popular due to their developing infrastructure and relatively more affordable property prices, making them attractive for both living and investment purposes.

When considering where to buy property, areas like Kemang, Pondok Indah, and Senopati are often recommended.

Kemang is great for those who enjoy a lively area with plenty of amenities, Pondok Indah for those seeking an upscale, family-friendly environment, and Senopati for its blend of luxury and accessibility to central Jakarta.

On the contrary, areas like Tebet or Pasar Minggu might be less advisable for some buyers. These areas can be quite congested and might not offer the same level of comfort or amenities as the more upscale neighborhoods. Also, they may not provide the same investment potential in terms of property value appreciation.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Indonesia.

Area	Atmosphere	Property Types	Price Range
Kemang	Vibrant, expat-friendly	Mix of houses and apartments	Moderate to High
Pondok Indah	Upscale, serene	Luxurious homes, high-rise apartments	High
Kebayoran Baru	Traditional charm with modern convenience	Colonial houses, high-rise apartments	High
Setiabudi	Urban, professional	High-rise apartments and office buildings	High
Pejaten	Developing, upcoming	Various residential properties	Moderate
Kalibata	Emerging, affordable	More affordable residential options	Moderate
Senopati	Luxurious, accessible	High-end properties	High
Tebet	Congested	Varied, less upscale	Lower to Moderate
Pasar Minggu	Busy, less comfortable	Less upscale residential properties	Lower to Moderate

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Is there a strong rental demand in South Jakarta?

Jakarta Selatan, indeed experiences strong rental demand, largely due to its appealing mix of urban amenities and residential comfort.

The nature of rental demand here tends to vary, including both short-term and long-term rentals, but there's a notable inclination towards long-term arrangements. This trend is driven primarily by the needs of the area's diverse demographic.

The target demographic for rentals in South Jakarta is quite varied. It includes young professionals, expatriates, and families. Young professionals often look for convenient, modern apartments close to their workplaces and urban amenities.

Expatriates, particularly those in Jakarta for extended business or diplomatic missions, tend to prefer furnished apartments or houses in areas that offer a sense of community and are close to international schools and embassies.

Families, on the other hand, often seek larger homes with multiple bedrooms, outdoor space, and proximity to reputable schools and healthcare facilities.

When it comes to the type of properties in demand, apartments, especially in high-rise buildings, are quite popular among young professionals and expatriates. These properties offer the convenience and amenities desired by this group, such as security, maintenance, gym, and sometimes a pool.

Families usually lean towards houses or townhouses that provide more space and privacy. These are particularly sought after in family-friendly neighborhoods like Pondok Indah or Kemang.

Specific areas within South Jakarta like Kemang, Pondok Indah, and Kebayoran Baru are particularly popular for rentals. Kemang, with its vibrant lifestyle, appeals to a younger demographic and expatriates, while Pondok Indah and Kebayoran Baru, known for their more serene and upscale environment, attract families and long-term expatriates.

To reduce vacancy, properties with certain amenities are more appealing. For instance, properties with reliable security, parking spaces, easy access to public transport, and proximity to lifestyle amenities like cafes, restaurants, and shopping centers tend to be more attractive.

Additionally, having a high-speed internet connection and modern appliances can significantly increase a property's appeal, particularly for the young professional demographic.

Regarding potential returns on investment, properties in South Jakarta can offer attractive yields, though this varies based on location, property type, and market conditions.

Generally, you can expect a moderate to high return on investment, especially for well-maintained properties in sought-after locations. Apartments in high-demand areas can often yield better returns due to the higher rental demand from young professionals and expatriates.

As for the type of properties gaining more demand and potentially offering better yields, modern apartments equipped with contemporary amenities are seeing an increase in popularity.

This trend is likely to continue as the demographic of Jakarta Selatan evolves and more young professionals and expatriates seek convenient, comfortable living spaces in the heart of the city.

Additionally, properties in areas with upcoming infrastructure developments or new commercial hubs are also likely to see increased demand, making them potentially more lucrative investments.

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Is it easy to buy a property as foreigner in South Jakarta?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Indonesia.

Buying a property as a foreigner in South Jakarta, or anywhere in Jakarta, can be more complex than it is for local residents due to Indonesia's specific regulations and restrictions on foreign property ownership.

Understanding these rules and the local property market is crucial to navigate the process successfully.

Firstly, foreign buyers in Indonesia face certain restrictions. One of the key regulations is that foreigners are only allowed to purchase property under a leasehold agreement, not a freehold.

This means that while you can own the building or the unit, you don't own the land on which it stands. The leasehold typically lasts for an initial period of 25 years and can often be extended.

Additionally, there are restrictions on the type of property foreigners can buy; for example, the property must meet certain minimum price thresholds, which vary depending on the location within Jakarta.

The purchasing process in South Jakarta involves several steps, starting with finding a suitable property, negotiating the terms, and then proceeding with the legal paperwork. This process can be intricate, and the legal documentation is typically in Bahasa Indonesia, which necessitates a reliable translation for non-Bahasa speakers.

As for risks, the primary ones associated with property investment in South Jakarta include the fluctuating real estate market, potential changes in property laws affecting foreigners, and the challenges of navigating a leasehold system.

It's also crucial to be aware of the property's legal status and ensure there are no outstanding land disputes or legal issues attached to it.

A classic pitfall for foreign buyers in Indonesia is underestimating the importance of due diligence. This includes thoroughly checking the property's legal documents, ensuring the seller has the right to sell the property, and confirming that all permits and paperwork are in order.

Another unique aspect to be cautious of is the 'right of use' (Hak Pakai) title, which is different from freehold ownership (Hak Milik), and understanding the implications of this distinction is essential.

Working with a local real estate agent or lawyer is highly recommended. They can provide invaluable guidance through the purchasing process, help with the language barrier, and ensure that all legal requirements are met.

They are also familiar with the local market trends and can provide insights into the best areas for investment.

Finally, regarding exit strategies, property investors in South Jakarta typically consider renting out their properties, which can provide a steady income stream, especially given the area's high rental demand. Another strategy is to sell the property after a period, potentially benefiting from capital appreciation.

However, it's important to keep in mind that as a foreigner, your ability to sell may be limited to other foreigners, which can restrict the pool of potential buyers.