The desire to work and live with their own place is the ultimate dream for the majority of expats in Semarang. With its rising popularity of being a tourist and business hub, Semarang has become one of the most well-received destinations for foreigner’s permanent residency, retirement, and investments. As a result, an increasing number of foreigners are now buying or considering buying a property in Semarang.
As the largest city and the capital city of Central Java, Semarang’s property market outlook is positive in 2020.
According to Central Java’s Indonesian Brokers Real Estate Association (AREBI), property sales will have a significant total increase in 2020 as compared to 2019.
The exuberant property market in Semarang is not surprising as more and more industries are now entering Central Java, providing a great number of property development opportunities.
As of 2019, there were a total of 28 property agent offices in Semarang, and a total of 46 property agent offices spreading across Central Java.
Particularly for residential property, its sales at the beginning of 2020 was doing remarkably well at the second Semarang Property Expo held at Ciputra Mall in Semarang. Twenty-eight units of residential property were sold and the total transaction value was recorded at IDR 38 billion.
The property market in Semarang and Central Java is expected to grow further due to the stability of bank interest rates, and the governmental policy for housing subsidy.
To ensure a smooth transaction for you to secure a property, you must first familiarise yourself with the regulations and laws applied to the property market in Indonesia.
We have prepared this article as a guide for potential purchasers of property.
Traditionally, Semarang only permits foreigners to rent a property for 25 to 30 years with possible extension, leaving foreigners with very few options.
However, following the prevalence of the Special Purpose Vehicle arrangement that allows the use of professional shareholder/director/commissioner services, owning a property in Semarang has become an endeavor within reach for many.
In Semarang, you normally have two options to own property:
Most property sold in Semarang are of leasehold title. Once you opt for a leasehold title and sign the leasehold agreement, you will have full legal protection and rights during the agreement period.
It is imperative to have a leasehold agreement properly drafted by law to protect your interests. Likewise, the agreement will also serve to safeguard the landlord’s interests. You can extend the agreement upon its expiry.
We highly recommend you draft your lease agreement in Indonesian and English languages to avoid misunderstandings between you and the landlord.
An accurately-drafted agreement through a reputable agent can also help protect you as a lessee and avoid future legal complications.
Semarang allows foreigners to buy a property in the city with a freehold title, as long as you appoint a local partner of Indonesian nationality. The local partner will serve as the legal owner and their name will show on the land certificate.
Therefore, to protect your rights and interests, an agreement is essential as well for this form of transaction.
Buying property in Semarang should be relatively straightforward. However, it would always be recommended that you instruct the services of a reputable agent and notary.
Serving our clients from all over the world for almost a decade, Cekindo provides integrated commercial and residential real estate transactions, permit application, agreement drafting, and consultancy services across the country.
Through deep knowledge, industry-leading expertise, and local market research, our goal is to offer convenience and solutions for our clients to work and live in Indonesia, as well as to create wealth through property investments.
Get in touch with us now and we will endeavour to help you own the right property in Semarang. Fill in the form below.