Residential Property Prices Rise 1.89 Percent, This Is The Cause

JAKARTA - The results of the Bank Indonesia Residential Property Price Survey (SHPR) indicate that residential property prices in the primary market in the first quarter of 2024 will continue to increase.

Assistant Governor, Head of the BI Communication Department Erwin Haryono said this was reflected in the growth of the Residential Property Price Index (IHPR) in the first quarter of 2024 of 1.89 percent (yoy), higher than the growth in the fourth quarter of 2023 which was 1.74 percent (yoy).

Erwin said residential property sales grew 31.16 percent (yoy), a significant increase compared to the previous quarter which grew by 3.37 percent (yoy).

"This is driven by an increase in sales in all types of houses," said Erwin in a written statement, Thursday, May 16.

In addition, Erwin conveyed that the survey results also showed that the source of financing for residential property development mainly came from developers' internal funds with a share of 72.93 percent.

Meanwhile, in terms of consumers, Erwin said that the majority of the primary housing purchases were made through a housing loan financing scheme (KPR), with a share of 76.25 percent of the total financing.

Meanwhile, spatially, out of 18 cities, nine cities increased IHPR, eight others slowed down, while one city recorded a decline.

The largest increase in house prices in the first quarter of 2024 mainly occurred in Samarinda City 2.45 percent (yoy), Pontianak 4.68 percent (yoy), and Denpasar 1.48 percent (yoy).

The slowdown mainly occurred in Bandar Lampung City 0.10 percent (yoy), Surabaya 0.34 percent (yoy), Balikpapan 0.48 percent (yoy), and Pekanbaru recorded contractions of 0.13 percent (yoy).