BI: Property Prices In Bali Grow 1.08 Percent

Illustration - A number of construction workers completed a shophouse project in Gianyar Regency, Bali, Friday (21/11/2025) ANTARA

DENPASAR - In the third quarter of 2025, the Bali Province Bank Indonesia (BI) Representative Office revealed that the growth in the property price index on the Island of the Gods was recorded at 1.08 percent, higher than the growth in the previous quarter of 0.67 percent.

Head of the BI Bali Representative Erwin Soeriadimadja in Denpasar, Saturday, explained that the increase in the property price index was driven by the increase in the price of building materials due to the increase in the price of the production sector.

"The increase in the price of building materials and work wages are the main contributors in increasing the price of housing units," he said, as reported by ANTARA, Saturday, November 22.

He further explained that in the three-month survey, the increase in building materials prices contributed 84.4 percent and the wages of construction workers were 43.8 percent.

The results, he said, were driven by an increase in the price of three types of properties, namely small with a building area of 36 square meters (m2), medium (36-70 m2) and large with a building area of above 70 m2.

The central bank recorded sequentially, the property price index for the three types of buildings reached 1.66 percent, 1.12 percent and 0.82 percent.

BI revealed the survey results that the share of large home-type sales increased by 0.7 percent compared to the previous quarter period, in line with the high demand for large houses as investment or residential housing.

Erwin added that when property prices increased, there were a number of factors that were considered to hinder the sale of primary residential property in Bali, including interest rates for home ownership loans (KPR), land limitations, down payment of houses and rising price of building materials.

In terms of financing, the portion of financing for residential property development in Bali is sourced from the developer's own funds or developers of 55 percent, bank loan funds of 36.6 percent, funds from buyers of 6.3 percent, and funds from non-bank financial institutions loans of 2.2 percent.

Meanwhile, in terms of consumers, the majority of the financing scheme in the purchase of primary houses is carried out through mortgages with a share of 62.1 percent.

Meanwhile, other schemes, namely gradual cash and hard cash, were recorded at 34.5 percent and 3.4 percent of the total primary home sales in Bali.

BI conducted a three-month survey of 32 developers in Bali with a large activity scale, dominant and quite active in building sustainable houses.

The survey method is conducted face-to-face, including data on the selling price of houses, the number of housing units built and sold and projected the selling price of houses in the next quarter.