Indonesia residential real estate market report for September 2026. National house prices were edging up, up 0.7% from a year earlier in Q2 2026 (+0.3% quarter on quarter). The pace of annual growth is steady. Bank Indonesia’s policy rate stood at 5.75% in August 2026, up from 5.00% a year earlier.
September 2026 at a Glance
House Prices and Trends
The national house price index for Indonesia rose 0.7% year on year in Q2 2026 and was +0.3% against the previous quarter, according to BIS, Residential property prices (nominal). A year earlier the annual rate was +0.9%, so growth has held broadly steady over twelve months.
| Quarter | Prices YoY | Prices QoQ |
|---|---|---|
| Q1 2025 | +1.1% | +0.3% |
| Q2 2025 | +0.9% | +0.2% |
| Q3 2025 | +0.8% | +0.2% |
| Q4 2025 | +0.8% | +0.2% |
| Q1 2026 | +0.6% | +0.0% |
| Q2 2026 | +0.7% | +0.3% |
House price index, % change year on yearQ3 2024+1.5%Q4 2024+1.4%Q1 2025+1.1%Q2 2025+0.9%Q3 2025+0.8%Q4 2025+0.8%Q1 2026+0.6%Q2 2026+0.7%
Financing and Interest Rates
Bank Indonesia’s policy rate was 5.75% in August 2026 (BIS, Central bank policy rates). Rates are 0.75 points higher than a year ago, which raises the cost of borrowing and tends to cool price growth with a lag of two to four quarters.
Indonesia in the News
- Real Estate Leader Rusmin Lawin Named SNPI Global Country Ambassador for Indonesia – InvestorTrust (InvestorTrust, 27 Sep 2026)
- Indonesia intensifies search effort for 129 people missing after ferry capsized in Java Sea – The Boston Globe (The Boston Globe, 14 Sep 2026)
- Indonesia’s property market feels the pinch of a reeling rupiah – Asia Property Awards (Asia Property Awards, 3 Sep 2026)
- In 1994, 280 craftsmen built a Balinese estate from Indonesian ironwood and teak; dismantled and shipped – The Times of India (The Times of India, 7 Sep 2026)
- Peregrine and Sinar Primera Join Forces to Build Indonesia's Next Cold Storage Powerhouse – Business Wire (Business Wire, 31 Aug 2026)
- ESR, MCUDI expand Indonesia Logistics partnership – Institutional Real Estate, Inc. (Institutional Real Estate, Inc., 7 Jul 2026)
Reading the Trend
Prices in Indonesia are essentially flat in nominal terms — which, after inflation, means slightly falling in real terms. Buyers have more time and more leverage than a year ago.
What to watch next month
- The next quarterly release of the house price index for Indonesia (Q2 2026 is the latest) — whether annual growth holds near +0.7%.
- Upcoming decisions by Bank Indonesia — any move from 5.75% feeds through to mortgage pricing within weeks.
What This Means for Buyers, Sellers and Investors
Time is on your side — offers below asking are normal in a flat market, especially on stock listed for more than 90 days.
The first two weeks on the market matter most — price to the last comparable sale, not the highest asking price in the street.
Rising financing costs narrow the gap between yield and mortgage rate; model returns at today's rate plus one point.
Sources
- BIS, Residential property prices (nominal)
- BIS, Central bank policy rates
- Headlines via Google News RSS; content belongs to the linked publishers.
Previous edition: Indonesia Property Market Report — August 2026
Methodology: all figures are taken directly from the free public statistical sources linked above, for the periods stated; official statistics are published with a lag, so the latest available release is used. Commentary is generated from those figures by rule and reviewed before publication. Nothing here is financial advice.
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