BI Revealed The Most Rising Property Prices Throughout The Second Quarter, KPR Facilities Are Still The Prima Donna

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reports that based on the results of the Residential Property Price Survey (SHPR) it is known that residential property prices will grow in the second quarter of 2021.

Head of the BI Communications Department Erwin Haryono said the Residential Property Price Index (IHPR) growth in the second quarter of 2021 was recorded at 1.49 percent year-on-year (yoy), higher than growth in the previous quarter of 1.35 percent (yoy).

"Primary residential property prices are estimated to grow more limitedly in the third quarter of 2021 by 1.12 percent (yoy)," he said in a press statement, Friday, August 13.

However, Erwin said that the survey results indicated that residential property sales in the primary market in the second quarter of 2021 had decreased.

This is reflected in residential property sales which contracted 10.01 percent (yoy) in the second quarter of 2021, down from 13.95 percent (yoy) in the previous quarter.

"The deeper decline in property sales was restrained by sales of medium-sized house types, which continued to grow positively," he said.

Erwin added, based on the source of financing, the survey results show that developers still rely on financing from non-banking sources for residential property development.

In the second quarter of 2021, 66.45 percent of the total capital requirement for housing project development comes from internal funds.

"Meanwhile, from the consumer side, banking financing with mortgage facilities (housing loans) remains the consumer's main choice in purchasing residential properties with a share reaching 75.08 percent of total financing," Erwin concluded.