Prices Rise, Residential Property Sales Still Not Recovered In The Third Quarter Of 2023

Home illustration (photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) noted that the development of residential property prices in the primary market on an annual basis (year on year/yoy) increased in the third quarter of 2023.

Executive Director of the BI Communication Department Erwin Haryono said that the Residential Property Price Index (IHPR) in the third quarter of 2023 grew by 1.96 percent (yoy), higher than the growth in the previous quarter which was 1.92 percent (yoy).

"In terms of sales, the survey results indicate that residential property sales in the primary market in the third quarter of 2023 have not recovered," he explained in his official statement, Thursday, November 15.

Meanwhile, residential property sales still contracted by 6.59 percent (yoy) in the third quarter of 2023 despite improving from a contraction of 12.30 percent (yoy) in the previous quarter.

Erwin conveyed that the survey results also show that the main capital for residential property development by developers comes from non-banking financing sources, namely internal funds with a share of 73.46 percent.

Meanwhile, in terms of consumers, the main financing scheme in purchasing primary homes is mortgages, with a share of 75.50 percent of total financing.