Don't Slip Up: Public Appraiser Reveals the Dark Side of Home Transactions

JAKARTA, KOMPAS.com - New home sales in the primary market contracted in the first quarter of 2026. Based on the Residential Property Price Survey (SHPR) published by Bank Indonesia (BI), the decline in transactions occurred both on an annual basis and quarter-on-quarter. Year on year, the drop in market volume was led by softer sales of smaller house types, which recorded a fairly deep contraction. The weakness in sales volume directly affected price movements of housing commodities, which tended to stagnate. The Residential Property Price Index (IHPR) in Q1-2026 remained anchored at 110.60 points, up only 0.62 percent year-on-year, slower than the previous quarter’s 0.83 percent. Independent research from Colliers Indonesia confirmed a similar slowdown trend. Small and medium-sized house segments saw only a tepid quarterly growth of around 0.3 to 0.5 percent, with uneven distribution. Price increases were relatively stable and generally localized to areas connected directly to new infrastructure connectivity, such as toll road corridors or railway networks in West Java and Central Java. The stagnation of this macro price index triggers information asymmetry risks at the upstream consumer level. Without comparator data, consumers are prone to paying prices well above the market fair value (overpay). Because the nominal base value of property transactions is very large, even small percentage differences in the field will quickly drain buyers’ liquidity. Many buyers of new property realise price miscalculations after the sale and purchase agreement is signed and the down payment is transferred to the developer. The Public Appraiser, and founder of Penilaian.id and CekNilai.id, Ni Luh Asti Widyahari, outlined common cases that occur in the retail primary property sector.