‘Market expected to normalise after GE’

Asian Property Review interviews Marine Novita, Country Manager of Rumah.com (part of PropertyGuru) on the outlook for the Indonesian property market.

1. What is the 2H 2023 outlook for the Indonesian property market?

Indonesia had been relatively resilient amid macroeconomic turbulence throughout 2022 thanks to its strong commodity export and domestic consumption; this will remain so in 2023.The Indonesia n Rupiah (IDR) has been recovering aga inst USD with 5.26% increase from December 2022 to April 2023.

In H2, spending from both priva te a nd government tends to accelera te along with infla tion. It’s sa fe to assume the property market in H2 will recover from Q2 low seasonality due to Ra mada n a nd Eid

Holidays. Note tha t BI Ra te hike in H2 2022 from 3.75% to 5.75% has not a ffected mortgage ra te yet (up until March 2023 aggregated mortgage rate data).

Another push for the property ma rket is tha t major infrastructure projects such as LRT Ja bodeta bek a nd the High-speed Ra il between Ba ndung a nd Jaka rta a re scheduled to complete a nd sta rt opera ting in 2023.

From our DataSense by PropertyGuru, our business ma rket da ta a nd intelligence pla tform, we ca n tell tha t dema nd is already recovering in 2023 with 14.5% increase in Q1 against the previous quarter although it’s still -14.6% lower YoY.

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