Flooring Guide by Cinvex JAKARTA — Indonesia’s residential property prices continued to exhibit growth in the first quarter of 2026, although the pace of this expansion notably slowed. This moderation comes amid softening demand and a deceleration in price increases across several major cities, signaling that the primary housing market has yet to fully recover its momentum.
The latest Bank Indonesia Residential Property Price Survey (SHPR) revealed that the Residential Property Price Index (IHPR) stood at 110.60 in Q1/2026, marking a year-on-year growth of 0.62%. This figure represents a dip compared to the 0.83% growth recorded in the fourth quarter of 2025, highlighting a consistent trend of deceleration in the Indonesian property market.
The primary driver behind this slowdown was the increasingly constrained price increases for both medium and large-type houses. Prices for medium-sized homes grew by 0.88% year-on-year, a decrease from the 1.12% seen in the previous quarter. Similarly, large-type houses experienced a more modest rise of 0.50%, down from 0.72%. Even small-type houses were not immune to this trend, with their prices growing 0.61% year-on-year, a decline from 0.76% in Q4/2025.
On a quarter-on-quarter basis, the IHPR showed an even more pronounced deceleration, rising by only 0.04% in Q1/2026. This was significantly lower than the 0.17% increase observed in the preceding quarter, indicating a broad-based slowdown affecting nearly all segments of the housing market.
Delving deeper into quarterly movements, small-type house prices increased by a mere 0.06%, a substantial drop from the previous 0.28%. Intriguingly, medium-type house prices contracted by 0.01% after having grown 0.12% in the prior quarter. Meanwhile, large-type houses saw a marginal increase of 0.06%, slowing from 0.17%, further illustrating the widespread cooling of the market.
Geographically, the softening trend was evident across the archipelago. Out of the 18 cities surveyed, ten experienced a slowdown in year-on-year price growth, while three cities even registered a decline in residential property values. This highlights a varied but generally subdued landscape for real estate in Indonesia.
Banjarmasin, for instance, recorded one of the sharpest decelerations, with house prices rising by only 0.52% year-on-year, a significant drop from the 1.63% growth previously. Surabaya faced even more intense pressure, as its house prices contracted by 0.27% year-on-year, a deeper contraction than the 0.04% seen in Q4/2025, pointing to a challenging environment in these urban centers.
Despite these widespread slowdowns, some cities are beginning to show signs of recovery. Padang, for example, saw impressive year-on-year growth of 1.21% in house prices, a substantial improvement from its previous 0.17%. Balikpapan also demonstrated resilience, with prices climbing 1.44%, up from 0.43%, suggesting pockets of strength within the broader market.
On a quarterly basis, Pontianak and Yogyakarta exhibited the most significant weakening. House prices in Pontianak fell by 0.74% after a previous increase of 0.56%, while Yogyakarta contracted by 0.68% following a 0.18% growth, underscoring localized challenges. Conversely, Padang and Balikpapan led the quarterly gains, with house prices in Padang surging by 1.08% from a previous minus 0.04%, and Balikpapan also rising by 1.08% from 0.14%, indicating robust quarterly performance in these areas.
The overall limited movement in residential property prices suggests a cautious approach from developers. They appear hesitant to significantly raise prices amidst persistent weak consumer purchasing power and an increasingly competitive sales environment. This prudence reflects the ongoing challenges in stimulating a full recovery within Indonesia’s housing market.
Summary
Indonesia’s residential property prices continued to grow in the first quarter of 2026, but at a significantly slower pace. The Residential Property Price Index (IHPR) reached 110.60, showing a year-on-year growth of 0.62%, a decline from 0.83% in the previous quarter. This deceleration was consistent across all house types, with medium and large homes experiencing increasingly constrained price increases. The slowdown was even more pronounced quarter-on-quarter, with the IHPR rising by only 0.04%.
Geographically, the softening trend was evident in ten out of eighteen surveyed cities, with some like Surabaya even registering a decline in values. Conversely, cities such as Padang and Balikpapan showed robust growth, indicating pockets of strength within the broader market. Developers are exercising caution in pricing due to persistent weak consumer purchasing power and a competitive sales environment, which continues to challenge a full recovery in Indonesia’s housing market.