Indonesia’s new housing market is starting to turn a corner after a difficult start to 2026. The recovery is not yet strong enough to say the market has fully bounced back, but the latest figures show a significant improvement, particularly in the second quarter.
Bank Indonesia’s Residential Property Price Survey (SHPR) recorded a 25.67% year-on-year decline in primary home sales during the first quarter of 2026. Just three months later, the contraction had narrowed dramatically to 2.36% year-on-year.
The change suggests that demand for newly built homes has begun to recover, although the market is still operating below its previous level.
“New homes from developers in Indonesia in 2026, based on the latest Bank Indonesia data through the second quarter of 2026, show that the market has improved quite significantly compared with the beginning of the year, although it has not fully recovered. In Q1 2026, primary home sales fell 25.67% year-on-year, while in Q2 2026 the contraction narrowed to just 2.36% year-on-year,” property analyst from Colliers Aleviery Akbar told CNBC Indonesia on Monday (September 28, 2026).
The improvement, however, has not been consistent across every type of home. Small and large properties have been the main contributors to the recovery, while demand for mid-sized homes remains more constrained.
“The improvement mainly came from small and large homes, while the mid-sized segment remains limited. So, sales volume has started to recover, but prices are still relatively flat,” Aleviery said.
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That difference between sales volume and prices is important. Although more homes are beginning to move, prices have not risen at the same pace. Bank Indonesia’s Residential Property Price Index (IHPR) increased by only 0.62% year-on-year in the first quarter of 2026. Growth then edged up slightly to 0.69% in the second quarter.
In other words, the latest market recovery is currently more visible in transaction activity than in property prices.
The broader three-year trend also shows why the current situation remains difficult to describe as a full recovery. Primary home sales were still declining by 15.09% year-on-year in the fourth quarter of 2024. The market then recorded 0.73% growth in the first quarter of 2025, only to return to contraction in the following two quarters.
Sales fell 3.80% year-on-year in the second quarter of 2025 and declined another 1.29% in the third quarter.
“Looking at the data from the past three years, from 2024 to 2026, the trend in new or primary home sales in Indonesia is quite clear: 2024 weakened, 2025 began to recover, and 2026 remains volatile, but Q2 showed a strong recovery,” Aleviery said.
While new homes are gradually showing signs of improvement, Indonesia’s secondary housing market is following a somewhat different path.
Existing home prices across the country have continued to increase, although the growth remains modest. Rumah123 data showed that secondary home prices rose by around 0.8% year-on-year in April 2026. By June, annual growth had reached approximately 1.1%.
The secondary market is also seeing changes in what buyers are looking for. Demand for ready-to-occupy homes has increased, indicating that some buyers may be placing greater importance on properties they can move into without waiting for construction or major preparation.
Inventory has also changed during the first half of the year. Data from Pinhome showed that the national supply of secondary homes increased by 2.6% in the first half of 2026. Jakarta recorded an even larger increase, with secondary housing inventory rising by around 3.6%.
“For secondary homes, conditions in 2026 actually appear quite active, but the market is more selective rather than simply focused on price increases. Demand for ready-to-occupy homes has increased, while prices are still growing at a relatively low rate,” Aleviery said.
Taken together, the latest figures point to a housing market that is becoming more active but remains selective. The primary market has made a notable recovery from the sharp contraction recorded at the beginning of 2026, yet prices remain relatively flat and the improvement differs between housing segments.
The secondary market, meanwhile, continues to record modest price growth while buyers increasingly show interest in homes that are already ready for occupancy. With inventory also increasing, particularly in Jakarta, the market is showing activity without a major surge in prices.
For now, Indonesia’s housing market appears to be in a gradual recovery phase rather than a full rebound. The second-quarter figures provide a more positive picture than the start of the year, but the continued volatility and uneven performance across segments show that the market has not completely returned to stronger conditions.
