Bank Indonesia Survey: Property Prices Rise At The End Of 2021 And Back To Slop At The Beginning Of This Year

JAKARTA - Bank Indonesia (BI) released a Residential Property Price Survey (SHPR) report which stated that residential property prices in the primary market grew on an annual basis in the fourth quarter of 2021.

Head of the BI Communications Department Erwin Haryono said the growth of the Residential Property Price Index (IHPR) in the fourth quarter of 2021 was recorded at 1.47 percent year on year (yoy).

"This record is higher than the growth in the previous quarter, namely the third quarter of 2021, which was 1.41 percent," he said in an official statement on Wednesday, March 16.

According to Erwin, different conditions will most likely occur at the beginning of this year.

"Primary residential property prices are expected to grow more limitedly in the first quarter of 2022 by 1.29 percent," he said.

In terms of sales, the survey results indicate an improvement in the contraction of residential property sales in the primary market in the fourth quarter of 2021. This is reflected in the sales of residential properties which contracted 11.60 percent in the fourth quarter of 2021, lower than the 15.19 percent contraction in the previous quarter. .

Then, based on the source of financing, it shows that developers still rely on financing from non-banks for residential property development.

In the fourth quarter of 2021, 63.33 percent of the total capital requirements for housing project development came from internal funds.

"Meanwhile, from the consumer side, banking financing with mortgage facilities is still the main choice for consumers in purchasing residential properties with a share reaching 75.65 percent of total financing," concluded Erwin.