House prices were down by 2% during the year to Q2 2022

Indonesia’s housing market remains weak, with the real residential prices in the country’s 14 largest cities falling by 2% in Q2 2022 from a year earlier, following y-o-y declines of 0.51% in Q1 2022, 0.28% in Q4 2021 and 0.16% in Q3 2021. House prices fell by 1.43% q-o-q during the latest quarter.


Demand rising

Surprisingly, residential property sales rose by 15.2% in Q2 2022 from a year earlier, following declines of 10.1% in Q1 2022, 11.6% in Q4 2021, 15.2% in Q3 2021 and 10% in Q2 2021, according to Bank Indonesia. 

Housing and apartment loans disbursed by banks in Q2 2022 rose by 7.07% from a year earlier but declined slightly by 0.62% from the previous quarter.

Rents, rental yields: yields are high in Jakarta at 7.09%

Apartment costs in Jakarta are low, at around $2,595 per sq.m. 

Indonesia: typical city centre apartment buying price, monthly rent (120 sq. m)
  Buying price Rate per month Yield
Jakarta   $311,400   $1,840 7.09%

Recent news: Indonesia’s economy expanded by 5.44% y-o-y in Q2 2022, from a 5.01% growth in the previous quarter and its fifth consecutive quarter of annual expansion, amidst the further easing of pandemic-related curbs. The continued growth was supported by recovery in consumption, investment and exports.

Bank Indonesia expects the economy to grow this year by around 4.5% to 5.3%, following a 3.69% expansion in 2021 and a 2.07% contraction in 2020.