Property Price Growth Slows, Sales Of Corrected Houses In The Second Quarter Of 2025

Housing (Photo: dock. Antara)

JAKARTA - The increase in the price of landed houses in Indonesia still shows a slowdown in the second quarter of 2025, especially for the small and medium house segments.

Based on data from the Residential Property Price Survey (SHPR) released by Bank Indonesia (BI) noted that the Residential Property Price Index (IHPR) only grew 0.90 percent on an annual basis or year-on-year (yoy) in the second quarter of 2025. This figure is lower than the growth in the previous quarter which was 1.07 percent (yoy).

BI Communications Department Executive Director Ramdan Denny Prakoso explained that the development of property prices was influenced by the slowdown in sales growth of small-type residential property units in the primary market, while large and medium-sized house sales contracted.

"Overall, sales of residential property units in the primary market recorded a contraction of 3.80 percent (yoy), after growing by 0.73 percent (yoy) in the first quarter of 2025," he said in a written statement, Wednesday, August 6.

As for the 18 cities surveyed, 14 cities showed an annual slowdown in IHPR growth, including Pekanbaru and Surabaya, recorded the most significant slowdown.

Pekanbaru recorded slowing growth from 2.69 percent (yoy) in the first quarter to 1.67 percent (yoy) in the second quarter of 2025. Then Surabaya became 0.44 percent (yoy) in the second quarter of 2025 compared to the first quarter of 2025 of 1.05 percent.

Meanwhile, several cities such as Banjarmasin and Semarang experienced an acceleration of growth in house prices.

In Banjarmasin, growth increased from 2.18 percent in the first quarter of 2025 to 2.25 percent (yoy) in the second quarter of 2025, while in Semarang it rose from 0.85 percent in the first quarter of 2025 to 0.96 percent (yoy) in the second quarter of 2025.

Denny said that in terms of financing, the survey shows that the main source of funding for residential property development still comes from the developer's internal funds, with a share of 78.36 percent.

Meanwhile, from the consumer side, the majority of the purchases of houses in the primary market are carried out through the Home Ownership Credit (KPR) financing scheme, with a share of 73.06 percent of the total financing.

However, the growth in the value of mortgages in the second quarter of 2025 only reached 7.81 percent (yoy), slowing down from the first quarter of 2025 by 9.13 percent (yoy).

Meanwhile, the cash payment method gradually contributed 17.75 percent, and direct cash payments were recorded at 9.19 percent of the total home purchases in the primary market.