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View all search resultsHousing market slows on economic concerns, credit conditions
Property consultants have pointed to global economic uncertainty and credit hurdles as contributing factors to the sharp drop in home sales in the second quarter of 2025.
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A worker installs roof rafters on Aug. 6, 2025, at a subsidized housing estate in Bogor, West Java. (Antara/Yulius Satria Wijaya)
I
ndonesia’s landed housing market cooled in the first half of 2025, with second-quarter sales slumping and price growth hitting its weakest level in over a year as lingering economic uncertainty, along with credit checks, weighs on demand.
The Bank Indonesia (BI) residential property price index (SHPR) survey showed that sales of residential property grew only 0.90 percent year-on-year (yoy) in April-June, easing from 1.07 percent in the first quarter and 1.76 percent in the same period last year.
“Overall, primary market sales of residential units fell 3.80 percent yoy in the second quarter, after growing 0.73 percent yoy in the first quarter of 2025,” BI spokesperson Ramdan Denny Prakoso said in a statement on Aug. 6.
The downturn hit almost all housing segments, with small home sales growth slowing to 6.70 percent yoy from 23.75 percent yoy in the previous quarter. Sales of medium and large homes contracted 17.69 percent yoy and 14.95 percent yoy, respectively.
Read also: Pramono targets over 1,000 ‘rusunawa’ units by next year to ease housing backlog
On a quarterly basis, overall sales tumbled 16.72 percent, erasing the 33.92 percent jump recorded in the first quarter. Small home sales posted the steepest reversal, plunging 26.98 percent after surging 83.97 percent in the first quarter.
Property consultancy firms reported that sales in Jakarta and surrounding cities nearly halved in the first six months. New landed housing launches fell to around 3,000 units, down nearly half from 6,000 units in the same period last year, according to Jones Lang Lasalle (JLL) Indonesia.
