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Wednesday, January 1, 2014

Jogyarkata The Next Real Estate Investment Destination.


Visiting this property exihibition in Jogja is extremely enlightening. Jogja is a city famous for the ancient Buddhist temple of Borobudur and the educational hub of Indonesia. As such tourism and any business that has a link to education is mega triving in this city.

It was reported by the Jakarta Post on the 2nd of February 2013, Jogja recorded the highest star hotel occupancy rate of 65.62% throughout 2012. Report on November 2013, by Indonesia Travel Agency, arrivals to the Adi Sucipto airport increased 47.42% which is second to Lombok. Meanwhile, statistic pointed that Singaporean top the list of visitor with 15.11%.

The list of universities in Jogja is as follows :-

State Universities 

Private Universities
Jogja has a population of 3.2 million people and about 511,000 of them live in the city. It was reported by the Jakarta Post on the 28th of May 2013, the 3 state universities had enrolled a total of 7551 for the academic year of

 2013/2014. As such lately, there is a huge demand for student accommodation whereby, new concept of living such as apartment and luxuries studio condominium is mushrooming every where.

The price indicated has already been 
increased from the first launch sometime in March 2013, which has the selling price of RP160 only. At the time of interview only 2 units left.

At this moment all the developer that being interview told me that foreigner are not allow to buy or transfer the property to their name. 



Most of the prices quoted are on cash basis and purchaser must take into consideration the service tax and transfer fees involved.



Condotel or service apartment with facilities is also very popular. Some developer offer the rental guarantee with well known mananger. 

As for now onwards, Jogjarian need to get
used to seeing their surrounding slowly
taken over by this new and modern structure. According to some local resident that I interviewed, they find it hard to accept staying in small and confirm space as all their life Jogja are famous for it Indonesian landscape, beautiful flower and soothing sound of water running.

As we all know, development will bring
new lifestyle and more income for the economy.





















Gated and guarded residents too are extremely popular. Most of them are developed around the satellite city and now one big development with club house facilities are being developed near the new International airport which estimated to be in operational in year 2025.





Prices for this property is not cheap and almost all of them are bought for own stay or investment.

According to Mr Stefan Hofer, Executive Director at Julius Baes, the high net worth individuals (HNWI) - defined as investable asset surpassing US$1 million excluding primary resident in Indonesia will increase to around 103,000 in year 2015.

Owing to the domestic blooming domestic business environment, HNWI in Indonesia was growing at the rate of 25% annually.









All of the early launches of all the property gallery that i had visited had a minimum of 30% increased from the selling price, some as high as 100%. Almost all developer registered sales up to 85%.