Although Still Contracted, Property Sales Start To Rise

JAKARTA - Bank Indonesia reported that there was an increase in property sales in the first quarter of 2022. The results of the Residential Property Price Survey (SHPR) stated that residential property sales increased to a 10.11 percent contraction on an annual basis (year on year/YoY) in the first quarter of 2022. compared to the position of the fourth quarter of 2021 which contracted 11.60 percent YoY.

"The survey results for the first quarter of 2022 indicate an improvement in sales of residential properties in the primary market, although they are still contracting", said Bank Indonesia Communications Department Head, Erwin Haryono, Wednesday, May 18.

According to Erwin, the same increase also occurred in the growth of the Residential Property Price Index (IHPR) which was recorded at 1.87 percent YoY.

This figure is higher than the growth in the previous quarter which was 1.47 percent YoY. Meanwhile, residential property prices in the primary market are expected to grow limited in the second quarter of 2022 by 1.16 percent YoY.

"This indicates that residential property prices in the primary market grew at the beginning of the year", he said.

Furthermore, Erwin explained that non-banking financing is still the main source of financing for residential property development.

In detail, in the first quarter of 2022, 65.50 percent of the total capital needs for housing project development came from internal funds.

"Meanwhile, from the consumer side, banking financing with mortgage facilities (home loans) is still the main choice in purchasing residential properties with a share of 69.54 percent of total financing", he concluded.