For years, overseas property buyers have been sticking with the usual favorites like Singapore, Malaysia, and Thailand. Those spots are steady and reliable, but now, investors are starting to notice Indonesia property. It’s shaping up to be Southeast Asia’s next big thing in real estate.
Indonesia Property Market Rebound
In 2025, Indonesia is not just competing, it’s winning the attention of global property investors with a compelling combination of affordability, attractive returns, and increasingly investor-friendly regulations.
According to Ferry Salanto, Senior Associate Director of Research at Colliers Indonesia, the presence of foreign investors in the residential sector is a positive development that can also elevate the quality of domestic property.
“With more players in the market, consumers have more options to choose from. Foreign investors typically target the upper-middle segment, so their presence in that niche will create more variety. Naturally, this will also raise the overall quality of local property products,” said Ferry on Wednesday, July 9, 2025.
Lower Prices, Taxes & High Rental Yields
If you’re seeking to diversify your portfolio and unlock significant growth potential, here’s why your next property investment should be in Indonesia: Â
1. More Affordable Property Prices
Indonesia offers significantly more accessible entry points for property investment, allowing your capital to stretch further and amplify potential returns.
• Jakarta: Property prices generally range from IDR 30–60 million per square meter (approx. USD 1,900 – 3,800/sqm).
• Singapore: Their more “affordable” public flats cost about IDR 79 million per square meter (around 4,900 US dollars/sqm). Private condos and big houses can easily hit IDR 243–257 million per square meter (15,000 – 16,000 US dollars/sqm).
• Malaysia: In a big city like Kuala Lumpur, property prices are around IDR 45 million per square meter (or about USD 2,900 per square meter). Still higher than Jakarta’s starting points, but in line with what to expect for a major capital.
Indonesia lets you get in on the action with a much lower initial investment. Affordability means higher potential for Return on Investment (ROI) with lower initial capital, a key advantage for growth-oriented investors.Â
2. Lower Property Taxes
🇮🇩 Indonesia
Foreign investors enjoy relatively light taxes:
• Acquisition Tax : 5% (BPHTB)
• Annual Property Tax: 0.1–0.5% of assessed value (PBB)
• Rental Income Tax: 10%-20% on the total lease value
• VAT: 11% on new homes
💡 Bottom line: Low across the board — Indonesia offers simple, affordable taxes for foreign investors.
🇸🇬 Singapore
Foreign investors face the highest tax load in the region:
• Buying Tax: Progressive up to 6%, plus a steep 60% Additional Buyer’s Stamp Duty for foreigners
• Selling Tax: Starts at 16% if sold within 1 year, gradually decreases to 0% after 4 years
• Annual Property Tax: 10–36% based on estimated rental value (non-owner-occupied)
💡 Bottom line: Steep taxes at entry and during ownership make Singapore a tough market for cost-conscious investors.
🇲🇾 Malaysia
Taxes are straightforward but can get costly depending on timing:
• Buying Tax: 4% stamp duty for foreigners
• Selling Tax: 30% if sold within 5 years, drops to 10% after
• Annual Property Taxes: Low — varies by state, typically a few hundred ringgit per year
• Rental Income Tax: 24–30%, depending on whether you invest as an individual or company
💡 Bottom line: Entry is simple, holding costs are low, but rental and capital gains taxes can eat into returns.
3. Great Rent Money
Even if prices moved slowly before, Indonesia’s rental market is booming! This means your property can give you good, steady income every month or year.
• In places like Jakarta, you can expect to earn 5–7% of your property’s value each year from rent. That’s a nice, consistent payment.
• Bali – The Superstar: But if you want to make serious rental money, think Bali! Holiday villas there can bring in an amazing 7–10% each year, with some top properties even hitting 12%!
How do other places compare for rent?
• The average Singapore rental yield is 3.29% in 2025.
• Kuala Lumpur (Malaysia): Usually around 6.2%. Good, but not as high as Bali.
• Thailand: In Q1 2025, Thailand average gross rental yield stands at 6.17%.
Simply Put: Your Indonesian property can be a great money-maker, giving you good rental income while you wait for its value to grow even more.
Invest Smart with Seven Stones Indonesia
Indonesia continues to make investing simpler for foreigners, with clear property rights like Right to Use, Leasehold, and Right to Build. With some extension, those rights can give you control of the property for up to 80 years! Plenty of time to see your investment grow.
And thanks to new fast-track investment regulations introduced in June 2025, permit approvals can now proceed automatically if the government doesn’t respond within a set timeframe, making the investment process quicker and more predictable.
To make the most of these opportunities, partner with Seven Stones Indonesia. With over 20 years of experience in legal and real estate services, we guide foreign investors with a streamlined, compliant approach. Let’s simplify your entry into Indonesia’s property market. Contact Seven Stones Indonesia today and discover how our team can support your next move.