Indonesia Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

18.9x

Ratio of property prices to annual income

Rental Yield

4.6%

Average annual rental return

Price to Rent

21.5

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Indonesia Real Estate trends and investment implications

Market Overview

Indonesia's property market shows signs of being overheated with a high price-to-income ratio, suggesting limited affordability. However, rental yields are moderately attractive compared to current interest rates, presenting potential opportunities for income-focused investors. The market cycle appears to be at a peak, raising caution for short-term capital appreciation strategies.

Key Findings

Data-driven insights

•The price-to-income ratio at 18.9 is high, indicating potential affordability issues for average residents.
•Rental yields are at 4.6%, which is relatively moderate but may still offer a premium over local interest rates.
•The price-to-rent ratio of 21.5 suggests renting could be more economically rational than buying at present.
•Historical data shows price growth has been strong, but current metrics indicate potential for market correction.

Market Trends

Historical patterns

•Price-to-income ratios have consistently increased, reflecting decreased affordability over time.
•Rental yields have remained stable, providing consistent cash flow opportunities.
•The market has experienced several cycles, with the current metrics indicating it may be at or near its peak.

For Investors

Actionable takeaways

•Consider waiting for potential market correction before making large capital investments.
•Focus on properties with rental yields above 5% to ensure a buffer against interest rate increases.
•Evaluate short-term rental markets which might offer better returns given the high price-to-rent ratio.
•Monitor economic indicators for signs of downturn to time entry post-correction.

Market Context

Indonesia's property market is maturing, characterized by rapid urbanization and economic growth. However, challenges such as affordability and potential overvaluation need careful consideration in investment strategies.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.