House prices were down by 3.36% during 2022

Indonesia’s housing market remains fragile, with the inflation-adjusted residential prices in the country’s 14 largest cities falling by 3.36% in 2022 from a year earlier, following y-o-y declines 0.28% in 2021, 0.04% in 2020, 0.65% in 2019 and 0.17% in 2018. During the latest quarter, house prices fell by 0.52% q-o-q.

Demand growth moderating

Residential property sales in the primary market rose modestly by 4.54% in Q4 2022 from a year earlier, a deceleration from y-o-y growth of 13.58% in Q3 2022 and 15.2% in Q2 2022, according to Bank Indonesia. 

Rents, rental yields: yields are moderately good in Jakarta at 5%

Indonesia: city centre apartment buying price, monthly rent (2-BR apartments)
	Buying price	Rate per month	Yield
South Jakarta	$ 224,985	$1,575	8.40%
West Jakarta	$  76,098	$  331	5.22%
North Jakarta	$  39,703	$  210	6.33%
Central Jakarta	$  86,016	$  165	2.31%
East Jakarta	$  39,045	$    96	3.04%

Recent news: Indonesia’s economy expanded by 5.31% in 2022 from the prior year, its best showing since 2013, primarily driven by strong household consumption, robust fixed investment, and surging exports, according to data released by Statistics Indonesia. 

Bank Indonesia expects the Southeast Asia’s biggest economy to grow this year by around 4.5% to 5.3%, one of the highest among G20 members, amidst the projected strong growth in tourism, infrastructure development, commodities, and manufacturing of high-value products.