Executive Summary

Key insights and market outlook

Indonesia's property market remains sluggish despite government incentives and interest rate cuts, with residential property prices growing only 0.84% YoY in Q3 2025 ¹

. Sales of residential properties in the primary market contracted by 1.29% YoY, though this was an improvement from the previous quarter's decline of 3.80% ¹. Industry experts attribute the stagnation to weak consumer purchasing power and economic growth concerns.

Full Analysis

02

Deep Dive Analysis

Indonesian Property Market Remains Sluggish Despite Incentives

Weak Consumer Demand Cited as Main Cause

The Indonesian property market continues to struggle despite various government incentives and monetary easing measures. According to Bank Indonesia's Residential Property Price Survey for Q3 2025, the Residential Property Price Index (IHPR) grew by only 0.84% year-on-year (YoY), down from 0.90% YoY in the previous quarter ¹

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Sales of residential properties in the primary market contracted by 1.29% YoY in Q3 2025, though this represented a moderation from the 3.80% YoY decline in the previous quarter ¹

. Industry players report that weak consumer purchasing power remains the primary challenge.

Industry Insights and Challenges

Harun Hajadi, Director of Ciputra Group (CTRA), noted that sales realization for the year remained sluggish and had not shown significant growth. By September, CTRA had achieved approximately 75% of its revised sales target of Rp 7.5 trillion ¹

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Bambang Ekajaya, Vice Chairman of Real Estate Indonesia (REI), confirmed that the weakening was felt among property business players, particularly heading into Q3 2025. Despite initial double-digit sales growth earlier in the year, the sector struggled as consumer demand failed to recover meaningfully ²

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References