Indonesia’s Secondary Housing Market Splits as Premium Homes Outpace Broader Market

JAKARTA, Jakartaweekly.com — Indonesia’s secondary housing market is becoming increasingly polarized, with larger premium homes significantly outperforming the broader market as demand remains concentrated in selected segments despite slowing nationwide price growth.

According to Rumah123’s July 2026 Flash Report, the national median house price was unchanged from the previous month in June and rose just 1.1% from a year earlier.

The increase lagged Indonesia’s annual inflation rate of 3.3%, suggesting that real house price growth has begun to lose momentum.

Beneath the modest national figure, however, some market segments recorded much stronger gains.

“The median price of homes larger than 251 square meters surged 46.7% year-on-year, with the strongest growth recorded in Medan,” Marisa Jaya, Head of Research at Rumah123, said in Jakarta on Monday, July 20, 2026.

She said the premium housing segment continued to outperform the broader market, while price growth in the mid-market segment remained more subdued.

The report also showed that homes measuring 151–250 square meters posted the strongest annual price increase in Surakarta, rising 15.8%. For homes between 91 and 150 square meters, Denpasar led with a 13.2% increase, while houses smaller than 60 square meters recorded the highest growth in Surakarta at 13.8%.

Although several cities and housing categories continued to post double-digit gains, the nationwide increase of just 1.1% suggests that price growth remains concentrated in selected regions and market segments rather than reflecting broad-based market strength.

“The pattern has changed over the past few years,” Marisa said. “Larger and premium homes are seeing much stronger price growth than the overall market, while the mid-market segment is expanding more slowly as household purchasing power has yet to fully recover. The market is becoming increasingly selective, with stronger demand supporting prices only in certain locations and segments.”

Price Growth Concentrated in Selected Cities

House price growth has also become more uneven across cities. On a monthly basis, only three of the 13 cities tracked by Rumah123 recorded price increases in June: Denpasar, up 2.5%; Jakarta, up 0.3%; and Tangerang, also up 0.3%.

On an annual basis, however, 10 of the 13 cities still posted gains. Denpasar led with a 9.5% increase, followed by Makassar at 6.2% and Bogor at 4.4%. Across Greater Jakarta, annual price growth was recorded in Bogor (4.4%), Bekasi (2.9%), Depok (1.7%), Tangerang (1.1%), and Jakarta (0.3%).

The data suggest that price gains are increasingly concentrated in cities with stronger demand, while markets that recorded sharper increases in previous years are beginning to normalize.

Supply Tightens While Buyer Interest Remains Strong

On the supply side, the number of secondary home listings fell 2.4% from the previous month and declined 17.0% from a year earlier, pointing to tighter inventory in the resale market.

Demand, however, remained resilient, particularly in the Greater Jakarta area. Tangerang accounted for the largest share of property searches in June at 15.2%, followed by South Jakarta at 11.9% and West Jakarta at 10.6%.

The figures indicate that fewer listings have yet to weaken buyer interest, with prospective homeowners continuing to actively search for properties despite limited supply.

Marisa said the market remains relatively balanced. “The decline in listings does not indicate mounting selling pressure,” she said. “Homeowners are largely holding onto their properties, while prospective buyers remain active. As long as that balance is maintained, secondary home prices are likely to remain relatively stable.”

BI Rate Hikes Yet to Fully Feed Through to Mortgage Costs

From a macroeconomic perspective, Bank Indonesia has raised its benchmark interest rate by a cumulative 100 basis points in recent months, bringing the BI Rate to 5.75%.

Despite the increase, the average benchmark lending rate (SBDK) for mortgages offered by major banks edged down slightly to 9.20% at the end of May from 9.27% previously.

Marisa said the central bank’s rate hikes had yet to fully feed through to mortgage lending rates. As long as that transmission remains incomplete, financing conditions for homebuyers are unlikely to tighten significantly heading into the second half of 2026.

She said the coming months would be crucial in determining whether the property market recovery broadens across more segments or remains concentrated in selected areas.

“As long as supply remains tight, demand stays resilient, and financing conditions do not tighten significantly, we believe Indonesia’s secondary housing market will continue to be supported by solid fundamentals through the end of 2026,” she said.