Jakarta: The property industry in Indonesia experienced a post-pandemic renaissance over the past year, ending with a cycle of stagnation at the end of the year. This can be seen from the price index and supply, as well as the decline in demand.
Rumah.com Country Manager Marine Novita revealed that based on data from the Indonesia Property Market Report Q1 2023 it showed a slight increase of 1 percent in the price index on a quarterly basis in the fourth quarter of 2022. “Meanwhile, there was a
0.3 percent quarterly increase in the supply index. national market demand fell by 40.4 percent on a quarterly basis,” he explained in the report quoted Monday, February 27, 2023.
Marine explained that the stagnation seen in the price and supply indices, as well as the negative trend in the national demand index is estimated as an annual trend, in addition to the trend of rising interest rates and cannot be separated from global macroeconomic conditions.
“The annual trend in the property industry is that at the end of the year people spend more on consumptive things, such as celebrating Christmas and New Years as well as holidays with their families, which is the reason for the decline in interest in the property market in the fourth quarter of 2022,” he said.
Despite stagnation and decreased demand, a number of areas in Greater Jakarta continued to show positive trends in the fourth quarter, such as the Tangerang and Bogor Regencies. In addition, the trend of property searches for residences above IDR 1 billion also continues to increase. The national property price
index in the fourth quarter of 2022 only increased by 1 percent on a quarterly basis in the fourth quarter of 2022. On an annual basis, the trend still shows a moderate increase of 5.8 percent.
Meanwhile, from the supply side, the national supply index was almost stagnant, with an increase of only 0.3 percent on a quarterly basis. On an annual basis, the increase in the supply index also looks quite moderate, namely 6.8 percent.
The slight increase in the property price index and property supply index, which was accompanied by a decrease in the market demand index, is expected to be a seasonal impact. Consumers seem to be more focused on consumer spending for Christmas and New Year and year-end holidays.