Rumah123 Research Calls There Has Been A Surge In Property Requests By Foreigners In Badung Bali

Illustration. (Photo: Doc. Antara)

JAKARTA - Research conducted by Rumah123 revealed that there was a surge in demand for property by foreign nationals (WNA) in Badung Regency, Bali, to reach 92.1 percent in 2023.

The significant growth in property demand by foreigners was followed by other cities such as Denpasar (81.3 percent), Surabaya (49.6 percent), and North Jakarta (46 percent).

"Rumah123 records, the growth in property demand from foreigners in 2023 has experienced rapid development compared to 2022. The potential market for foreigners is expected to accelerate the growth and progress of this industry better in 2024," said Head Research Rumah123 Marisa Jaya in Jakarta, quoted from Antara, Tuesday, March 26.

In terms of popularity, South Jakarta is still ranked first as a favorite of foreigners. One of its regions, the Central Business District (CBD) is an area that has been equipped with various adequate supporting facilities, an established environment, and a modern community that supports the needs of expatriates, making it a favorite choice for foreigners in property search.

On the other hand, Badung as one of the popular destinations in the eyes of foreign tourists ranks second most in demand. In addition to its position as an entry gate for tourists through Ngurah Rai International Airport and the large development of commercial and tourism areas, digital nomad and remote working trends also boost the popularity of this region.

Tangerang is ranked third in the most favorite area because the area is surrounded by industrial estates and is the closest area for foreigners working in the West Java Island area, such as Cilegon, Cikande and Serang.

Then in terms of property type, in general the type most sought after by foreigners during 2023 is landed houses, land and apartments. Search for foreigners from a number of countries to landed houses ranged from 47.4-68 percent. While the search for land is around 6.7-21.8 percent and the search for apartments at the level of 9.7-25 percent.

Several foreign countries recorded a higher proportion of apartment search, such as South Korea (19 percent), Thailand (17.8 percent), Canada (18.9 percent), India (25 percent) and China (22.4 percent).

From these data, it can also be seen that property seekers from China tend to be different from other countries because they recorded a fairly high proportion of warehouse search, amounting to 7.4 percent, compared to other countries which tend to be lower in the range of 0.3-2.7 percent.

"As one of the biggest contributors to investment realization in Indonesia in 2023, the property sector has grown quite well in the local market," said Marisa.

Through Rumah123 research, Marisa said that throughout 2023, five foreigners seeking property in Indonesia were dominated by Singapore (21.9 percent), the United States (16.1 percent), Australia (11.8 percent), Malaysia (8.9 percent), and Japan (4.0 percent).

If you look at the trip, since the fourth quarter of 2022, there has been a surge in foreign demand following the issuance of the Decree of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Number 1241/SK-HK.02/IX/2022 of 2022 concerning the Acquisition and Price of Homes/Residences for Foreigners and Second Home Visa at the end of December 2022.

The two policies indirectly make it easier for foreigners to live, buy and invest in property in Indonesia.

This policy change boosted interest significantly in almost all of the most popular areas in the first quarter of 2023, especially areas with tourism bases. Followed by other areas that are thick with dense economic and business activities.

In the second quarter of 2023, he continued, conditions tended to fluctuate, and two cities still seemed to consistently experience demand growth, namely Badung (39 percent) and Batam (11.2 percent).

Entering the third quarter of 2023, the government conducts Socialization of Residential Ownership Regulations for Foreigners, one of which states that foreigners can own property using passports.

The Golden Visa policy which is intended for quality foreigners for the country's economic development is also officially enforced as of August 30.

From these findings, it can be seen that the determination of a number of regulations and policies that make it easier for foreigners to reach property in Indonesia can open up great opportunities for foreign markets throughout 2024.

By considering the minimum limit on property purchase prices for foreigners, sales can be focused on the upper and upper middle market segments.

This is a potential for stakeholders, especially developers and investors. If the relaxation of policies and regulations set by the government is consistently implemented at the central and regional levels, foreigners get sufficient literacy or socialization, this will stimulate a positive market response and support the growth of the national property industry in the future," he concluded.