Property Stocks Projected to Continue Rising
In 2025, Indonesia’s property sector stocks showed a remarkable rally, surpassing expectations of experts and investors. The IDX Properties & Real Estate Index on the Indonesia Stock Exchange (BEI) surged by 54.41% year-to-date, significantly outperforming the broader Jakarta Composite Index (IHSG), which rose by only 22.1%.
A significant driver of this growth was the monetary policy easing by Bank Indonesia, which included five interest rate cuts, bringing the rate down to 4.75%. This rate reduction decreased borrowing costs, increased mortgage demand, and prompted a capital shift into high-beta stocks, particularly in real estate.
Sukarno Alatas, senior analyst at Kiwoom Sekuritas, highlighted that besides monetary factors, debt restructuring, new projects, and corporate actions also fueled the stock surge. However, these changes are not yet fully reflected in the companies’ profit growth.
Stocks like PT Trimitra Prawara Goldland Tbk (ATAP) and PT Bukit Uluwatu Villa Tbk (BUVA) have been top gainers, surging by thousands of percent.
Analysts advise investors to remain cautious, as some stock prices could be buoyed by speculation and have valuations exceeding their fundamentals.
David Kurniawan from Indo Premier Sekuritas noted that the low-interest rate trend supports expectations for a revival in property sales, especially with a potential capital rotation from overvalued sectors into lagging property stocks.
