Indonesia's property market slowing sharply
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The Indonesian residential property price index (16 major cities) rose by 3.1% during the year to Q2 2016, according to Bank Indonesia, but when adjusted for inflation, property prices in the country actually fell by 0.39% in Q2 2016 from a year earlier. During the latest quarter, residential property prices rose by a meagre 0.36% (0.3% inflation-adjusted).
Nominal property price figures can be misleading in Indonesia, because inflation has been high (although now slowing). Residential property has been attractive to rich Indonesians and others partly as a protection against inflation.
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