Indonesia’s housing market is showing an interesting shift. While property prices in some segments remain stable or even grow slightly, large homes are beginning to lose value. At the same time, the rental market in Indonesia is gaining a stronger role in shaping how people choose where to live.
Data from Pinhome’s National House Price Index for the fourth quarter of 2025 reveals that large houses categorized as type greater than 201, often referred to as mansion-sized homes, experienced a year-on-year price decline of 0.9 percent.
According to Pinhome, changes in consumer behavior are influencing this trend. Many buyers are delaying the purchase of large homes or choosing rental options instead, especially in core urban areas. At the same time, housing inventory has increased in several commuter regions.
“Medium and small segments remain the public’s favorite, while large houses are experiencing a decline related to consumers’ tendency to postpone purchases or switch to rental options in core cities, as well as increasing inventory in several commuter areas,” Pinhome explained in a written statement on Wednesday (March 11, 2026).
The price decline for large houses has been most visible in several areas of West Java. In Bogor Regency, prices fell by 3 percent to around Rp3.5 billion. Bekasi Regency also recorded a 2 percent drop, bringing the average price to approximately Rp2.75 billion. The decrease was influenced by a growing number of properties being listed as quick sales, which pushed sellers to adjust prices.
Other areas in West Java experienced similar movements. In Bandung Regency, prices for large homes dropped by 3 percent to around Rp2.9 billion. Cimahi City also saw a 3 percent decrease, with prices reaching about Rp3 billion. These changes were partly influenced by increasing public attention to environmental risks and the implementation of housing moratorium policies. In Cirebon City, prices for houses larger than type 201 also declined by 3 percent, settling at around Rp3.1 billion.
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Outside Java, a similar trend appeared in Jayapura, Papua. Prices for large homes in the city declined by 2 percent to around Rp1.9 billion. The shift is linked to a stronger focus on developing affordable housing for low-income communities.
Even though large houses are experiencing price pressure, the national housing market still recorded modest growth overall. Home sale prices across Indonesia increased by 0.4 percent between 2024 and 2025.
When examined by housing type, smaller homes showed the strongest growth with an annual increase of 0.8 percent. Houses sized between type 55 and 120 rose by 0.5 percent, while homes in the 121 to 200 category increased by 0.3 percent.
These figures highlight the continued strength of the small and medium housing segments. They remain the main pillars of Indonesia’s property market. Improving economic activity in several regional centers has helped support this demand. Rising land values near education hubs, industrial zones, and tourism areas also contribute to keeping housing prices aligned with consumer purchasing power.
Meanwhile, the rental market is showing signs of stabilization. Rental prices for houses in the fourth quarter of 2025 increased slightly by 0.6 percent compared to the previous quarter.
However, on a year-on-year basis, rental prices were still down by 1 percent. The quarterly increase occurred across all housing segments, particularly for medium and large homes.
This pattern suggests that the rental market in Indonesia has entered a more stable phase after experiencing price adjustments in earlier quarters.
