BI Says Tax House Prices Increase Driven By Types Of Small Property

Illustration. (Photo: Doc. Antara)

JAKARTA - The price growth of landed houses increased in the first quarter of 2024, when compared to the previous quarter. This is based on the results of the Bank Indonesia residential property price survey (SHPR) indicating that residential property prices in the primary market in the first quarter of 2024 will continue to increase.

Assistant Governor, Head of the BI Communication Department Erwin Haryono said this was reflected in the growth of the Residential Property Price Index (IHPR) in the first quarter of 2024 of 1.89 percent (yoy), higher than the growth in the fourth quarter of 2023 which was 1.74 percent (yoy).

According to Erwin, the increase in the IHPR was mainly driven by the increase in small-type property prices, which increased 2.41 percent (yoy), continuing to increase prices in the fourth quarter of 2023 by 2.15 percent (yoy).

Furthermore, the development of medium and large house prices in the first quarter of 2024 is also indicated to still increase even though it is not as high as the previous quarter.

The prices of each type increased by 1.60 percent (yoy) and 1.53 percent (yoy), slowing down from 1.87 percent (yoy) and 1.58 percent (yoy) compared to the previous quarter.

Erwin said residential property sales grew 31.16 percent (yoy), a significant increase compared to the previous quarter which grew by 3.37 percent (yoy).

"This is driven by an increase in sales in all types of houses," said Erwin in a written statement, Thursday, May 16.

In addition, Erwin conveyed that the survey results also showed that the source of financing for residential property development mainly came from developers' internal funds with a share of 72.93 percent.

Meanwhile, in terms of consumers, Erwin said that the majority of the primary housing purchases were made through a housing loan financing scheme (KPR), with a share of 76.25 percent of the total financing.

Spatially, of the 18 cities observed, nine cities experienced an increase in the IHPR, eight others experienced a slowdown while one city was recorded to have decreased.

Meanwhile, the largest increase in house prices in the first quarter of 2024 mainly occurred in Samarinda City 2.45 percent (yoy), Pontianak 4.68 percent (yoy), and Denpasar 1.48 percent (yoy).

Meanwhile, the slowdown mainly occurred in Bandar Lampung City 0.10 percent (yoy), Surabaya 0.34 percent (yoy), Balikpapan 0.48 percent (yoy), and Pekanbaru recorded a contraction of 0.13 percent (yoy).

Erwin said that the increase in residential property prices in the first quarter of 2024 is estimated to be influenced by the increase in building materials prices.

This is reflected in the increase in the IHPR in line with the movement of the Consumer Price Index (IHK) Subgroup for Maintenance, Repair, and Housing Safety in March 2024 of 1.89 percent (yoy), higher than 1.74 percent (yoy) in the fourth quarter of 2023.

In addition, Erwin said that the increase in residential property prices was also driven by an increase in demand as reflected in the sharp increase in home sales in the quarter of the report.