After a challenging year, Indonesia property sector is beginning to show signs of a turnaround. Developers are preparing more aggressive project launches, and that shift is expected to lift pre-sales performance in 2026, bringing fresh momentum to a market that slowed through much of 2025.
Research released by Maybank Sekuritas Indonesia on February 5, 2026, highlights how Indonesia property sector performed over the past year. According to analyst Kevin Halim, total aggregate pre-sales in 2025, excluding joint venture land sales, reached Rp 24 trillion. That figure marked a 7% year-on-year decline. The drop came after several strong years, as pre-sales posted a compound annual growth rate of 13% between 2020 and 2024.
Housing demand throughout 2025 remained subdued. The weakness became more pronounced in the second half of the year, when demand fell 13% compared with the first semester. While overall demand softened, buying interest did not fall evenly across all price segments.
Higher-end homes attracted the most attention. Units priced above Rp 5 billion delivered the strongest performance, recording a 36% year-on-year increase in 2026. This shift suggests buyers with stronger purchasing power stayed active, even as broader market conditions remained cautious.
The picture was less favorable in other segments. Homes priced between Rp 2 billion and Rp 5 billion saw demand decline by 9% year on year. The most significant pressure was felt in the lower segment. Properties priced below Rp 2 billion experienced the deepest contraction, with demand falling 22% year on year.
Looking ahead, Kevin expects pre-sales momentum to improve in 2026. The key driver is a solid pipeline of new project launches planned by developers. BSDE is one example. The developer is set to introduce two new projects, Nava Park 2 and Kota Wisata Ecovia, as part of its expansion strategy.
Valuations also play an important role in shaping the sector’s outlook. Indonesia’s property sector is currently trading at the lowest valuation level among regional peers.
“The price-to-earnings (P/E) ratio stands at 7.4x and the price-to-book (P/B) ratio at 0.6x, even though the sector is able to generate solid return on equity (ROE) and maintain the lowest leverage levels among peer countries,” Kevin said in the research.
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Regional comparisons underline how discounted the sector has become. Thailand and the Philippines are the closest benchmarks, with P/E ratios ranging from 7.8 to 8.2 times and P/B ratios between 0.7x and 0.8x. Meanwhile, property sector valuations in Malaysia, Singapore, and Vietnam are significantly higher.
Dividend returns add another layer of appeal. Indonesian property stocks offer dividend yields of around 2% to 4%, supported by dividend payout ratios of 10% to 30%. These yields remain below Thailand’s, which range from 4% to 9% due to more aggressive payout policies. Even so, the income potential remains attractive for investors seeking balance between yield and valuation.
Another key factor is how far prices sit below asset values. Property stocks in Indonesia are trading at discounts of roughly 80% to 90% to adjusted net asset value. This wide gap reflects just how undervalued the sector is in current market conditions.
Taken together, cheap valuations, appealing dividend yields, and the expected recovery in pre-sales support a positive view on the sector in 2026. Within this landscape, PWON stands out as the top pick. The stock is backed by a strong recurring income base, attractive yields, and valuations that remain relatively inexpensive compared with peers.
