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SUMMARY
Property prices in Indonesia are still rising, but barely: national new-home prices are up only 0.69% year over year and resale houses about 0.9%, leaving the country much closer to stagnation than a broad property boom.
The more important shift is happening after inflation. Consumer prices are rising 3.19%, so Indonesian residential property is currently losing value in real terms even while nominal prices remain slightly positive.
The national average hides unusually large local differences. Makassar resale prices are up 10%, Denpasar 6.3%, Samarinda new homes 3.23% and Batam 2.63%, while Jakarta is nearly flat and Surabaya resale prices have slipped 0.5%.
The long slowdown may finally be bottoming out. New-home appreciation improved from 0.62% to 0.69% in the latest quarter after falling almost continuously from 1.89% in early 2024.
Sales are recovering faster than prices. Primary-home transactions rose 9.39% from the previous quarter and the annual sales decline narrowed sharply, yet that rebound has produced almost no acceleration in national selling prices.
Credit remains the main constraint. Mortgages finance about 70% of primary-home purchases, but property-credit growth has fallen to its weakest pace in more than four years and apartment lending is contracting.
The resale market has an odd combination of shrinking inventory and weak price growth. Listings are down 16.4% year over year, yet prices are up only 0.9%, suggesting affordability and geographically concentrated demand are preventing scarcity from becoming a nationwide bidding war.
Developers also have little room to cut prices aggressively. Construction-material wholesale prices are rising more than 9% annually, so many developers are protecting headline prices and competing through promotions, payment plans, smaller units or lower margins instead.
Government support is substantial but has not created a boom. Buyers can benefit from VAT incentives, subsidised 5% FLPP mortgages in the lower-income segment and loan-to-value limits of up to 100%, yet national appreciation remains below 1%.
Indonesia’s housing shortage gives the market a strong long-term demand floor, but a backlog is not the same thing as purchasing power. Millions of households need better housing; far fewer can comfortably afford market-rate mortgages today.
The most plausible next phase is a modest acceleration rather than a sudden national surge. Markets already attracting stronger local demand should continue outperforming, while Jakarta apartments, weaker regional cities and mortgage-sensitive buyers keep the national number subdued.
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Are property prices in Indonesia still rising now?
Yes, property prices in Indonesia are still going up today, but the national increase has become extremely small.
Bank Indonesia’s latest Residential Property Price Survey puts annual price growth for new homes at just 0.69%. Rumah123’s latest resale index tells almost the same story, with second-hand house prices up 0.9% year over year.
Those two datasets cover different parts of the market, yet they are landing in almost the same place. New homes are barely appreciating. Resale homes are barely appreciating too.
The pace has also weakened sharply. Bank Indonesia recorded 1.89% annual growth in early 2024. That fell to 1.39% by the end of 2024, 1.07% in early 2025, 0.83% at the end of 2025 and 0.62% in early 2026. The latest 0.69% reading is a small improvement, but Indonesia is still close to the weakest growth in the history of Bank Indonesia’s current residential price series.
So prices are rising, but Indonesia today is a very low-growth housing market, not a country where property prices are climbing strongly.
| Period | New-home price growth YoY | What was happening |
|---|---|---|
| Q1 2024 | 1.89% | Growth still fairly visible |
| Q4 2024 | 1.39% | Slowdown underway |
| Q1 2025 | 1.07% | Close to 1% |
| Q4 2025 | 0.83% | Very weak growth |
| Q1 2026 | 0.62% | New low |
| Q2 2026 | 0.69% | Small rebound |
Why do Indonesian property prices look so different depending on where you look?
Indonesian property prices currently tell very different stories because Jakarta, Bali, Makassar, Surabaya and smaller regional markets are moving at completely different speeds.
That is why the national number can be misleading. Rumah123 found resale house prices rising 10% year over year in Makassar and 6.3% in Denpasar. Jakarta was up only 0.4%, while Surabaya fell 0.5%.
Bank Indonesia finds the same kind of spread in the new-home market. Samarinda recorded annual growth of 3.23% and Batam 2.63%, while Pontianak slipped slightly.
The datasets also measure different things. Bank Indonesia mainly follows new landed homes sold by developers across 18 cities. Rumah123 follows asking prices in the resale market. JLL and Colliers track Jakarta apartments separately.
For someone actually buying property, the local market now matters far more than Indonesia’s national average. A 0.7% national increase tells us surprisingly little about a particular neighbourhood or property type.
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Have property prices in Indonesia been slowing for years?
Yes, Indonesia’s property-price slowdown has been building for several years, and today’s weak growth is part of a much longer trend.
Bank Indonesia’s residential index has historically grown at roughly 3.5% a year since the early 2000s. Current growth is running at around one-fifth of that pace.
The contrast becomes even clearer if we go further back. Annual price growth briefly moved above 13% during the property upswing of 2013. Indonesia has gradually moved away from that kind of market, and even the relatively modest increases seen in 2023 and early 2024 have faded.
The recent sequence is unusually consistent. Annual growth fell from 1.89% in Q1 2024 to 1.76%, 1.46%, 1.39%, 1.07%, 0.90%, 0.84%, 0.83% and then 0.62% before edging back to 0.69%.
For now, 0.69% looks more like the bottom of a long slowdown than the beginning of another boom. It is the first tentative sign that the decline in growth may have stopped, though.
| Period | Annual price growth |
|---|---|
| Q1 2024 | 1.89% |
| Q2 2024 | 1.76% |
| Q3 2024 | 1.46% |
| Q4 2024 | 1.39% |
| Q1 2025 | 1.07% |
| Q2 2025 | 0.90% |
| Q3 2025 | 0.84% |
| Q4 2025 | 0.83% |
| Q1 2026 | 0.62% |
| Q2 2026 | 0.69% |
Are Indonesian homes getting cheaper after inflation?
Yes, Indonesian homes are currently losing value in real terms even though their rupiah prices are still creeping upward.
BPS now puts annual consumer inflation at 3.19%. Against that, Bank Indonesia’s latest new-home price growth is only 0.69%.
The gap is roughly 2.5 percentage points. A house rising 0.7% while the general price level rises 3.2% has become cheaper relative to everything else in the economy.
The resale market has been showing the same pattern for much longer. Rumah123 reported that resale-house appreciation had stayed below inflation for 16 consecutive months. Its latest national reading was 0.9% year over year.
Indonesian homeowners can therefore see nominal prices rise while the real purchasing power of those properties falls. That distinction is easy to miss when every headline is written in rupiah.
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Which Indonesian cities are still seeing strong property-price growth?
Makassar and Denpasar currently stand out as the clearest fast-rising resale markets, while Samarinda and Batam are outperforming in Bank Indonesia’s new-home data.
Rumah123’s latest resale figures put Makassar at +10% year over year, followed by Denpasar at +6.3% and Bogor at +3.7%. Bekasi and Depok were both around +2.3%.
Those increases sit far above the national resale figure of 0.9%.
Bank Indonesia’s survey produces a different city ranking because it follows developer-built homes. Samarinda rose 3.23% annually, while Batam reached 2.63%. Ten of the 18 cities covered by Bank Indonesia saw faster annual growth in the latest quarter.
There is also a strong split by property size. Rumah123 found some very large increases inside individual city-size combinations, including a 29.4% rise for houses of up to 60 square metres in South Jakarta and 28.4% for 61–90-square-metre homes in Yogyakarta. Those figures need some caution because changing listing mixes can move median asking prices a lot, but they show just how much stronger individual niches can be than the national market.
| Market | Latest annual change | Segment |
|---|---|---|
| Makassar | +10.0% | Resale houses |
| Denpasar | +6.3% | Resale houses |
| Bogor | +3.7% | Resale houses |
| Samarinda | +3.23% | New homes |
| Batam | +2.63% | New homes |
| Bekasi | +2.3% | Resale houses |
| Depok | +2.3% | Resale houses |
| Jakarta | +0.4% | Resale houses |
| Surabaya | -0.5% | Resale houses |
Is Jakarta property still going up?
Jakarta property prices are barely rising today, and the apartment market looks especially flat.
Rumah123 puts annual resale-house growth in Jakarta at only 0.4%. With national inflation above 3%, that represents a clear real-terms decline.
The condominium market is softer still. JLL’s latest Jakarta residential review says condominium prices remained largely unchanged and described market conditions as soft. No new upper-luxury condominium projects were launched during the quarter.
Colliers arrived at a similar picture. Jakarta had roughly 232,000 completed apartment units, with no new completions during the quarter. Developers were concentrating on selling existing stock, and buyers were increasingly people who actually planned to live in the units.
Promotions and flexible payment schemes have become more important too. Developers are working harder to close transactions while trying to keep headline selling prices stable.
For Jakarta today, flat is the better description.
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Is Bali still outperforming Indonesia?
Yes, Bali property prices are still outperforming the Indonesian average, especially around Denpasar and in the resale market.
Bank Indonesia’s Bali survey recorded primary residential prices rising 1.02% year over year, already faster than the 0.69% national figure. Medium-sized homes increased 1.52%.
Resale prices have been much stronger. Rumah123’s latest Denpasar reading was +6.3% year over year. One month earlier, Denpasar had been running at +9.5%.
That large gap between roughly 1% growth in the official primary market and more than 6% in Denpasar resale housing says quite a lot about Bali. Tourist areas, established resale homes, scarce land and villa-heavy locations can behave very differently from standard developer housing.
Bali still deserves to be called an appreciating market. It just should not be used as shorthand for Indonesia as a whole.
Has Surabaya property already stalled?
Yes, Surabaya property prices have effectively stalled, and the latest resale data have already moved slightly negative.
Rumah123 recorded Surabaya resale-house prices down 0.5% year over year. That puts the city at the opposite end of the market from Makassar and Denpasar.
The change is worth watching because Surabaya was still showing modest growth relatively recently. Bank Indonesia recorded annual primary-home appreciation of 1.09% at the end of 2024.
Current listing indicators also show weakness in several parts of the city, including Wiyung and Mulyorejo, although neighbourhood-level medians can shift when the mix of listed homes changes.
Surabaya is a useful reality check: Indonesia’s weak national growth already includes major cities where prices have stopped climbing altogether.
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Are buyers coming back strongly enough to push Indonesian property prices higher?
Indonesian home sales are recovering from a very weak start to the year, but buyers are still too cautious to create strong nationwide price growth.
Bank Indonesia recorded primary residential sales falling 25.67% year over year in Q1. In Q2, that contraction narrowed dramatically to just 2.36%, while sales rose 9.39% from the previous quarter.
That is a real improvement. The comparison with earlier cycles still looks weak, though. Primary-home sales had jumped 31.16% year over year in early 2024, before momentum disappeared and the market moved into contraction.
Medium-sized homes remain a problem today. Sales in that category fell 10.51% year over year in Q2, worse than the 8.28% decline recorded one quarter earlier.
Buyers are coming back, but they are not bidding aggressively. Transaction activity is recovering much faster than property prices, which is actually a pretty useful distinction here.
| Indicator | Previous reading | Latest reading |
|---|---|---|
| Primary-home sales YoY | -25.67% | -2.36% |
| Primary-home sales QoQ | -7.69% | +9.39% |
| Medium-home sales YoY | -8.28% | -10.51% |
| New-home prices YoY | +0.62% | +0.69% |
| Purchases financed by mortgages | — | 70.05% |
Are mortgage costs still holding back Indonesian property prices?
Yes, mortgage financing is still one of the main brakes on Indonesian property prices because most buyers rely on banks and borrowing conditions remain expensive.
Bank Indonesia says mortgages account for 70.05% of primary-home purchases. Financing conditions therefore have an unusually direct effect on demand.
The policy rate currently stands at 5.75%. Indonesia had been at 4.75% earlier in the year, but Bank Indonesia raised rates as it focused on rupiah stability and inflation risks.
Property lending is also growing slowly. Bank Indonesia data reported by the Jakarta Globe show property credit increasing just 4.24% year over year in June to around Rp1,022 trillion. That was the weakest growth in 53 months.
Landed-home lending grew 4.63%, while apartment lending fell 0.53%. Lending for homes measuring up to 21 square metres fell 8.04%.
Those numbers do not look like the foundations of another broad property boom. Credit demand remains subdued even though Bank Indonesia currently allows property loan-to-value ratios as high as 100%.
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If Indonesia has fewer resale homes for sale, why aren't prices jumping?
Indonesia’s resale supply has fallen sharply, but buyers still lack enough purchasing power to turn that shortage into strong national price increases.
Rumah123 reported the number of resale listings down 16.4% year over year in its latest report. The previous reading had already shown a 17% fall.
Yet resale prices increased only 0.9%.
That combination is unusually revealing. Cutting available inventory by roughly one-sixth would normally put visible pressure on prices if buyers were competing strongly for the remaining homes.
Search demand also remains heavily concentrated. Tangerang accounted for 14.7% of Rumah123 searches, South Jakarta 12.9% and West Jakarta 10.2%. Those three areas alone represented more than one-third of the searches covered by that breakdown.
So there are fewer homes being offered for sale, but demand is concentrated by geography and affordability. Scarcity is producing strong increases in some pockets without doing much to the national index.
| Resale-market indicator | Latest reading |
|---|---|
| National resale-price growth | +0.9% YoY |
| Resale listing supply | -16.4% YoY |
| Tangerang share of searches | 14.7% |
| South Jakarta share | 12.9% |
| West Jakarta share | 10.2% |
| Cities with positive annual prices | 10 of 13 |
Are rising construction costs keeping Indonesian property prices from falling?
Yes, rapidly rising construction costs are giving Indonesian developers a strong reason to resist price cuts.
BPS reported construction-material wholesale prices rising 9.37% year over year in its latest detailed reading. Asphalt, reinforcing steel, sand, crushed stone and cement all contributed.
Compare that with only 0.69% growth in new-home selling prices. Construction-material inflation is running at more than 13 times the pace of primary residential price appreciation.
Developers cannot absorb that gap forever without adjusting somewhere. They can accept lower margins, build smaller homes, reduce specifications, change land sizes, delay projects or eventually ask buyers to pay more.
Jakarta apartment developers are already showing another version of this behaviour. Colliers found them protecting headline prices while using promotions and flexible payment plans to move existing inventory.
High construction costs make a large nominal national price decline less likely. They do not magically give buyers the income to absorb much higher selling prices.
| Indicator | Annual change |
|---|---|
| Construction-material wholesale prices | +9.37% |
| New-home selling prices | +0.69% |
| Approximate ratio | 13.6× faster |
| Resale house prices | +0.9% |
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Are government housing incentives propping up Indonesian property prices?
Yes, government support is helping Indonesia’s housing market today, and the fact that price growth remains so weak despite those incentives tells us demand is still fragile.
The biggest direct support is the government-borne VAT programme, or PPN DTP. Qualifying ready-to-occupy landed houses and apartments can receive 100% government coverage of VAT on the first Rp2 billion of the selling price, provided the total property price does not exceed Rp5 billion.
That creates a real saving for buyers. Colliers has already linked the incentive to stronger interest in ready-stock Jakarta apartments.
Lower-income households can also access subsidised FLPP mortgages at a 5% interest rate, while Indonesia continues pushing its large subsidised-housing programme.
Bank Indonesia has simultaneously kept macroprudential rules loose, allowing property loan-to-value ratios of up to 100%.
Buyers therefore have tax support, subsidised mortgages in the lower-income segment and permissive loan-to-value rules. National prices are still growing by less than 1%. Underlying demand is clearly not that strong.
Will Indonesia’s housing shortage eventually push prices much higher?
Indonesia’s housing shortage should support residential demand for years, but affordability will decide whether that demand actually turns into higher market prices.
BPS estimates that 12.39% of Indonesian households do not own a home, equivalent to roughly 9.29 million households. Jakarta has an especially high ownership backlog, while West Java has the largest backlog in absolute numbers at more than two million households.
Another large group already owns housing that does not meet official adequacy standards.
Those numbers create a huge long-term need for new and better homes. Yet the backlog itself has been improving. The number of households without a home fell from roughly 9.64 million to 9.29 million, while the inadequate-housing backlog also declined.
The bigger issue is income. A household needing a home only becomes effective property demand when that household can afford the down payment and monthly mortgage.
Indonesia clearly has a structural need for millions of homes. That supports construction and mass-market housing over the long run, but it does not mean market prices must rise quickly.
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Could Indonesian property prices accelerate again from here?
Yes, Indonesian property-price growth could pick up from today’s unusually low level, and the latest data suggest the long slowdown may finally be starting to flatten out.
Primary-home price growth edged from 0.62% to 0.69%. Sales recovered 9.39% quarter over quarter. Ten of Bank Indonesia’s 18 markets saw faster annual price growth. Resale supply is shrinking sharply. Construction costs continue rising.
Several cities are already much further into an upswing. Makassar, Denpasar, Samarinda and Batam show that stronger appreciation is possible when local demand is good enough.
Still, the national market has plenty of brakes. Mortgage-dependent buyers face a 5.75% policy-rate environment. Property-credit growth is at its weakest in more than four years. Jakarta apartments remain soft. Surabaya resale prices have slipped. Inflation is running far ahead of national home-price appreciation.
Our base case from here is a gradual recovery in nominal price growth rather than a sudden nationwide surge. The places already attracting strong demand should continue doing most of the heavy lifting.
So, are property prices in Indonesia still rising?
Yes, property prices in Indonesia are still rising, but today’s national market is much weaker than that simple answer makes it sound.
Bank Indonesia has new-home prices up 0.69% annually. Rumah123 has resale houses up 0.9%. Meanwhile, the newest BPS inflation reading is 3.19%.
Indonesia therefore still has positive nominal property appreciation and clearly negative real property appreciation.
The geographical split is now impossible to ignore. Makassar resale prices are up 10%, Denpasar 6.3%, Samarinda new homes 3.23% and Batam 2.63%. Jakarta resale prices are up only 0.4%, Jakarta condominiums are broadly flat and Surabaya resale prices are down 0.5%.
Sales have started recovering, but lending remains weak and even a 16.4% fall in resale supply has failed to push national prices much higher.
Our final judgment is straightforward: property prices in Indonesia are still rising on paper, but the country is currently much closer to a stagnant housing market than a broad property boom. After inflation, national residential prices are falling. The real growth is happening selectively in a handful of cities, neighbourhoods and property segments.
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OUR METHODOLOGY
This analysis tests whether property prices in Indonesia are still rising by looking beyond a single national index. We compare national price momentum with primary and resale markets, city-level differences, inflation-adjusted performance, transaction activity, mortgage conditions, resale supply, construction costs, government support and the underlying housing backlog.
We deliberately keep the datasets separate where they measure different things. Bank Indonesia’s Residential Property Price Survey mainly tracks new landed homes sold by developers across 18 cities, while Rumah123 follows asking prices in the secondary market. JLL and Colliers provide a separate view of Jakarta’s condominium market. Those figures are compared with one another, but they are not treated as if they came from one unified price index.
We also distinguish price outcomes from the forces that may eventually affect them. Falling resale inventory, higher construction costs, VAT support, subsidised mortgages and generous loan-to-value rules can all support housing prices, but we only treat them as supporting evidence. The central question remains whether actual price, transaction and credit data show broad appreciation.
Inflation is included because a nominal increase of less than 1% means something very different when consumer prices are rising by more than 3%. Throughout the analysis, positive rupiah appreciation is therefore separated from real, inflation-adjusted property performance.
We give more weight to conclusions supported by several independent datasets. The clearest example is the national slowdown: Bank Indonesia’s new-home index and Rumah123’s resale index cover different markets but both currently show annual appreciation below 1%. Where the evidence diverges, such as Makassar, Denpasar, Jakarta and Surabaya, we keep that divergence visible instead of averaging it away.
Key sources used for this analysis include Bank Indonesia’s Q2 2026 Residential Property Price Survey, Bank Indonesia’s Q1 2026 survey, its Q4 2025 survey, and the Q1 2024 survey for the longer price-growth comparison.
For the resale market, the main sources are Rumah123’s August 2026 Flash Report and its secondary-house price analysis. Inflation comes from BPS’s August 2026 Consumer Price Index release, while construction costs come from BPS’s July 2026 Wholesale Price Index.
Jakarta apartment conditions are checked against JLL’s Jakarta Residential Market Dynamics and Colliers’ Jakarta Apartment Market Report for Q2 2026. Financing and policy conditions are based on Bank Indonesia’s monetary-policy decision, its 2026 LTV/FTV framework, the Ministry of Finance regulation covering the housing VAT incentive, and the Ministry of Housing and Settlement Areas on the 5% FLPP mortgage rate.
For the longer-term housing-demand picture, we use BPS’s Housing Statistics 2026 for the home-ownership backlog and BP Tapera for the scale of subsidised FLPP housing finance.
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