YoY residential property index growth Greater Jakarta, Indonesia Q1 2022-Q2 2024
As of the second quarter of 2024, the residential property price index in Greater Jakarta (locally known as Jabodetabek) increased by approximately 1.4 percent. This indicated a sharp decline following a period of continuous increases in the price index over the past few years.
Indonesia’s housing market
Indonesia is currently struggling with a housing backlog, reaching nearly 13 million units in 2023. This represented the number of Indonesian households who were supposed to own a house in the country. In response to this issue, the government has initiated the “One Million Houses” program (Program Sejuta Rumah), intending to build a million houses annually. Among other cities in Indonesia, Pontianak stood out with the highest house price growth as of the second quarter of 2024.
The rising role of Greater Jakarta‘s satellite cities
As Indonesia’s financial center, Jakarta outpaces other areas in terms of average land prices. For residential homes, the average land price is significantly higher than the land price in industrial areas in Jakarta. Greater Jakarta, home to about 30 million people, encompasses Jakarta and five satellite cities, including Bogor, Depok, Tangerang, South Tangerang, and Bekasi. As Jakarta lacks affordable housing and developed areas for landed houses, many residents are now starting to relocate to its satellite cities. This has also caused Jakarta to have a lower residential property sales rate compared to the other Greater Jakarta regions.
