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.
