Bank Indonesia Survey: Despite Rising Prices, Property Sales Still Grows

Illustration. (Photo: Doc. Antara)

JAKARTA - The price of residential property in the primary market on an annual basis continues until the third quarter of 2022. Even so, the property sales of this segment also grew.

As stated in the results of the Bank Indonesia Residential Property Price Survey (SHPR), Monday, November 14.

Executive Director of the Communication Department of Bank Indonesia, Erwin Haryono, said that the Residential Property Price Index (IHPR) in the third quarter of 2022 was recorded at 1.94 percent (yoy), higher than 1.66 percent (yoy) in the previous quarter.

"However, in the fourth quarter of 2022, the price of primary residential property is predicted to start to increase in a limited way by 1.65 percent (yoy)," said Erwin.

In terms of sales, residential property sales growth in the primary market in the third quarter of 2022 remained strong. This is indicated by residential property sales which grew by 13.58 percent (yoy) in the third quarter of 2022, although it was lower than 15.23 percent (yoy) in the previous quarter.

Erwin added that the survey results also show that non-bank financing is still the main source of financing for residential property development. In the third quarter of 2022, 73.20 percent of the total capital requirement for housing project development came from internal funds.

Meanwhile, from the consumer side, banking financing with mortgage facilities is still the main choice in purchasing residential property with a share of 74.53 percent of total financing.