According to Bank Indonesia’s Residential Property Price Survey, house prices have experienced a consistent rise in the second quarter of 2023.
The House Price Index (HPI) for Q2-2023 has surged by 1.92% year on year (yoy), outperforming the prior quarter’s 1.79% growth, reveals Erwin Haryono, Executive Director of Communication Department at BI.
The significant price increase is primarily attributed to the upswing in prices for small-sized houses, which saw a yoy growth of 2.22%, surpassing the 1.77% yoy growth recorded in Q1 2023.
Medium-sized homes witnessed a price increase of 2.72% yoy, slightly lower than the Q1 2023 increase of 2.76% yoy. Large-sized homes also experienced a price hike, registering at 1.49% yoy.
Batam and the areas of Jakarta, Bogor, Depok, Bekasi (Jabodebek), Banten, and Denpasar recorded the most significant price leaps in Q2. Specifically, Batam saw an HPI surge of 3.57% yoy; Jabodebek-Banten experienced 2.24% yoy; while Denpasar marked a 0.27% yoy increase.
Quarterly, the HPI in Q2 2023 indicated a minor rise, charting an increase of 0.48% quarter to quarter (qtq), slightly higher than the previous quarter’s 0.42% qtq increase.
Delving into specifics, prices for small-sized houses increased by 0.75% qtq and large houses by 0.41% qtq. However, the price for medium-sized homes increased by just 0.49% qtq, a dip from the preceding quarter’s 0.66% qtq. Spatially, Batam saw the most substantial qtq rise of 2.88%, followed by Jabodebek-Banten at 0.74% and Denpasar at 0.07% qtq.
With the consistent rise in house prices, especially in areas near Singapore such as Batam and Jabodebek, Singaporeans looking to invest or relocate might find the escalating prices less attractive. Conversely, this might be indicative of robust economic growth and potential future investment opportunities, making these regions attractive to keen-eyed international investors.
House prices in Indonesia have observed consistent growth in 2023, with Batam and Jabodebek witnessing the steepest hikes. The rising prices, though, might influence investment considerations for neighboring Singaporeans and global investors.
Source: Batam News (2023)
