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Rising property prices are usually indicative of rising income in a country. Given its position as one of the anchors of the economy, a strong property market is also indicative of healthy economic growth.

It should therefore come as no surprise that property prices in Jakarta rose higher than in any other city in the region in the fourth quarter of last year. According to property advisory firm Jones Lang LaSalle , Jakarta saw the biggest increase in high-end residential property value in the fourth quarter last year compared to the same period in 2010. It looked at eight cities in its recent study, including Hong Kong, Bangkok and Mumbai.

It is also worth noting that more people are opting to live in high-rise condominiums in the city center, a trend that has been building over the past few years. Credit must be given to property developers who identified this trend early on and began building high-end apartments as part of larger commercial and retail developments.

As the value of property in the city center rises, it pulls along the values of property in other areas of Greater Jakarta. As in a rising tide that lifts all boats, all homeowners can enjoy higher property values. This is how wealth is created for a large cross section of the population.

The challenge for the government and private property developers is to build homes for lower-income groups. These should be of sufficient quality for people to want to purchase them by borrowing from banks. And if the land titles for such homes are clear and transparent, home ownership can become more widespread.

More broad-based home ownership is vital for sustained long-term economic growth and for maintaining social stability. If more people are able to own homes, more people will have a stake in the nation’s future. Young people entering the job market will work hard and save in anticipation of being able to afford their own property.

Steps must therefore be taken to push home ownership. The private sector cannot do it on its own. It needs to work with the government to acquire the necessary land and the financial sector to provide the financing.

Rising property prices, as long as they do not create bubble conditions, are positive. They indicate an economy that is growing robustly and a population that is experiencing progress.