Traditionally, Indonesia sees the prices of basic commodities such as chickens, eggs, sugar, onions, chillies, rice and cooking oil rise significantly during the 4 weeks of Ramadan and this, in turn, impacts the economy.  Inflation this year, however, is more controlled and that's having an effect on the country's property market.

The Central Bureau of Statistics (BPS) have predicted Indonesia's property market to experience slight adjustments related to Ramadan but these will be measured and controlled.

According to a recent report in Tribun News, in the past three years, a downward trend in house prices can be seen during Ramadan. Country Manager of Rumah.com, Marine Novita confirms this. "The last three years of our Rumah.com Property Index (RPI) show the national property market is dynamic during Ramadan but the last two years have been a lot more stable than the aggressive boom of 2015," she said.

The RPI analyzes some hundreds of thousands of listed properties sold and leased from all over Indonesia, and it shows the decline in property prices in Ramadan compared to previous quarters in the range of 1-2%, with Bali recording a 1.9% decline, East Java 1.4% and West Java just 1%.

The survey at a glance:

• Property prices in Ramadan have been falling for the past few years and this trend is expected to continue this year.
• Most residential transactions are taking place among first-time buyers looking for a home. Those looking to upgrade or invest seem to be holding back.
• Now is a good time to buy (from a buyer's perspective) as prices are relatively stable. Prices will increase as the market shifts to favour sellers.

Speaking to Merdeka, Independent economic and property analyst David Cornelis explains property price fluctuations are likely to be felt most in the lower-middle-class sector, where people are faced with choosing between buying a home or meeting their seasonal Idul Fitri obligations. In this market segment, "property sales tend to decline during Ramadan," he says. One month after however, there's a rise and this tends to be the pattern until the end of the year.

When it's a buyer's market developers have less bargaining power and tend to use more promotional gimmicks such as bonuses and other conveniences as incentives for people to commit to a property purchase. Ike Hamdan from Rumah.com says if people are aware then it's times like this that provide the best options and prices for home buyers.

This article was previously published on GapuraBali

Sources: Tribun, Republika, Merdeka, RPI 

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