House prices were down by 3.48% during the year to Q3 2022

Indonesia’s housing market remains fragile, with the inflation-adjusted residential prices in the country’s 14 largest cities falling by 3.48% in Q3 2022 from a year earlier, following y-o-y declines of 2% in Q2 2022, 0.51% in Q1 2022, 0.28% in Q4 2021 and 0.16% in Q3 2021. House prices fell by 1.26% q-o-q during the latest quarter.

 

Demand rising

Surprisingly, residential property sales in the primary market rose by 13.58% in Q3 2022 from a year earlier, following an increase of 15.2% in Q2 2022 and declines of 10.1% in Q1 2022, 11.6% in Q4 2021, and 15.2% in Q3 2021, according to Bank Indonesia. Annually, the total value of housing and apartment loans disbursed by banks in Q3 2022 rose by 7.98% from a year earlier.

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 5.72% year-on-year in Q3 2022, its sixth consecutive quarter of annual expansion, primarily driven by strong household consumption, robust fixed investment, and surging exports, according to Statistics Indonesia.

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.