House Prices Growth Slows in 2026, Signal of a Sluggish Property Market?
Jakarta – The residential property market is beginning to exhibit signs of slowdown in early 2026. Amid high housing needs and the continued dominance of home purchases via Home Ownership Credit (KPR), house price growth is flattening.
Meanwhile, property sales have plummeted significantly. This situation raises new questions: is the national property sector entering a sluggish phase?
Based on the results of the Residential Property Price Survey (SHPR) for the first quarter of 2026 released by Bank Indonesia, residential property prices in the primary market grew only modestly.
“The Residential Property Price Index (IHPR) for the first quarter of 2026 grew by 0.62% (yoy), slightly lower than the growth of 0.83% (yoy) in the fourth quarter of 2025,” stated the report, as quoted on Monday, 11 May 2026.
The slowdown occurred across nearly all house types. Medium-sized house prices grew by 0.88% annually, down from 1.12% previously. Meanwhile, large-sized houses rose by only 0.50%, lower than the 0.72% in the previous quarter.
Small-sized houses grew by 0.61%, down from 0.76% at the end of 2025. Spatially, the slowdown also occurred in various major cities. Of the 18 cities surveyed, 10 experienced a slowdown in price growth, and three cities even recorded annual house price declines.
One of the deepest declines occurred in Surabaya, which recorded a price contraction of 0.27% (yoy), deeper than the previous quarter’s minus 0.04%.
Not only prices, but residential property sales also faced significant pressure. “Overall, residential property sales in the primary market contracted by 25.67% (yoy), after growing by 7.83% (yoy) in the fourth quarter of 2025,” the report revealed.
The largest decline occurred in small-sized house sales, which contracted by up to 45.59% annually. Whereas in the previous quarter, this segment had still managed to grow by 17.32%.
On the other hand, medium-sized house sales recorded positive growth of 8.28%, while large-sized houses remained negative at 8.03%.
On a quarterly basis, house sales also contracted by 7.69% compared to the previous quarter. Large-sized house sales fell the most at 20.38%, followed by medium-sized houses which dropped 10.72%.