Trend: House prices fell slightly by 0.19% during 2018
Indonesia’s housing market remains sluggish, despite strong economy. The residential prices in the country’s 14 largest cities fell slightly by 0.19% during 2018, from steady prices in 2017 and y-o-y declines of 0.89% in 2016, 0.19% in 2015 and 0.18% in 2014. House prices dropped 0.17% q-o-q during the latest quarter.
Analysis: Residential property sales falling.
Residential property sales fell by 5.78% q-o-q in Q4 2018, from quarterly declines of 14.14% in Q3 and 0.08% in Q2 2018 and double-digit rises from 2013 to 2015, according to Bank Indonesia.
Rents, rental yields: yields are high in Jakarta at around 7.40%
Apartment costs in Jakarta are low, at around $2,823 per sq.m.
|Indonesia: city centre apartment, buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Jakarta||$ 352,875||$ 2,175||7.40%|
Recent news: In 2018, the economy grew by a healthy 5.15%, at par with the previous year’s 5.07% growth, thanks to strong private consumption and fixed investment. The Indonesian economy is expected to remain strong this year, with a projected GDP growth rate of 5% to 5.4%, according to Bank Indonesia.
After facing one of the most serious political and religious tensions in Indonesia’s history last year, political conditions have also improved dramatically in recent months, with President Widodo’s popularity back to its near record highs. Recently, Widodo named cleric Ma’ruf Amin as his running mate in April 2019’s presidential elections, in a sign that he wants to strengthen his Islamic credentials.