House prices rose slightly by 0.16% y-o-y in Q1 2019

Indonesia’s housing market remains sluggish, despite strong economy. The residential prices in the country’s 14 largest cities rose by a meager 0.16% during the year to Q1 2019, from a y-o-y decline of 0.19% in Q4 2018 and rises of 0.08% in Q3 2018, 0.01% in Q2 2018 and 0.4% in Q1 2018. House prices increased 0.42% q-o-q during the latest quarter.



Residential property sales rising again

Residential property sales rose strongly by 23.77% q-o-q in Q1 2019, in contrast to quarterly declines of 5.78% in Q4, 14.14% in Q3 and 0.08% in Q2 2018, according to Bank Indonesia.  Sales saw double-digit rises from 2013 to 2015.

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: typical 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 Q1 2019, Indonesia’s economy expanded by 5.07% from a year earlier, at par with its y-o-y growth of 5.18% in Q4 2018, 5.17% in Q3, 5.27% in Q2 and 5.06% in Q1, amidst almost steady household consumption, which represents more than half of the economy. 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. Widodo won a second term in office during the April 2019 elections, beating former general and longtime rival Prabowo Subianto. But Prabowo rejected the result as he alleged “widespread cheating” and warned of potential street protests.