According to a survey by Bank Indonesia (BI), the increase in house prices slowed down in the middle of this year.
In Q2 2025, the house price index or residential property index only rose by 0.9% compared to Q2 last year (year-on-year/yoy).
This price growth was lower than in Q1 2025, and even became the lowest in the last three years.
Previously, since Q2 2022, house prices in Indonesia had always increased by more than 1% (yoy) per quarter, as shown in the graph.
This slowdown in house price increases occurred concurrently with sluggish sales. In Q2 2025, the volume of house sales recorded a decrease of 3.8% (yoy).
According to BI's findings, during that period, the main factor hindering house sales was the increase in building material prices (19.97%).
Other obstacles included licensing aspects (15.13%), mortgage interest rates (15%), high down payments for mortgage applications (11.38%), and taxation (8.66%).
BI obtained these figures from a survey of property developers spread across 18 major cities.
The survey locations included Jabodebek-Banten, Bandung, Surabaya, Semarang, Yogyakarta, Manado, Makassar, Denpasar, Pontianak, Banjarmasin, Bandar Lampung, Palembang, Padang, Medan, Batam, Balikpapan, Pekanbaru, and Samarinda.
The survey was conducted through direct interviews regarding house selling prices and the number of housing units sold.