Small And Large Homes Lift Indonesia Primary Sales From Deep Contraction

Bank Indonesia's second-quarter survey shows Indonesia's primary housing market still weak, but no longer contracting as sharply as earlier in the year.

Prices Increased Only Slightly

The residential property price index for the primary market rose 0.69 percent year on year in Q2 2026, only a little faster than the 0.62 percent growth recorded in Q1. That confirms a stable but subdued developer pricing environment.

Sales Improved From A Low Base

Primary residential sales still contracted 2.36 percent year on year, but that was far less severe than the 25.67 percent fall in the previous quarter. Bank Indonesia attributed the improvement to better sales of small and large houses, while medium-type homes remained constrained.

Mortgage Dependence Is High

Consumers bought most primary homes through KPR mortgages, while developers relied heavily on internal funds. That makes loan approvals, instalment structures and developer balance sheets central to transaction risk.

Buyer Checks

Purchasers should compare nearby resale prices, KPR approval likelihood, land certificate status, developer financing, handover timing, flood exposure and transport access. Low national price growth does not remove project-level risk.

Outlook

Indonesia's market looks stabilised rather than accelerating. Affordable small homes and well-priced large-house projects should convert better than mid-market launches that lack mortgage support or clear delivery evidence. City-level survey tables should guide whether Jakarta and secondary-city demand are moving together.

Search for Properties for Sale and Rent: Indonesia Housing Market.