Sales Of Seret Property In The Mid-Ascension In Prices, High Interest Rate Effects?

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) reports that based on the results of the Residential Property Price Survey (SHPR), it indicates that residential property prices in the primary market will continue to increase until the fourth quarter of 2022.

Head of the Communications Department Erwin Haryono said the Residential Property Price Index (IHPR) in the fourth quarter of 2022 recorded an increase of 2.00 percent on an annual basis (year on year/yoy).

"This is higher than the previous quarter which was 1.94 percent," he said in a written statement on Friday, February 17.

Erwin explained that at the same time there was a contradiction in the sales side. It is stated that the survey results indicate residential property sales in the primary market in the fourth quarter of 2022 grew slowly.

"Residential property sales grew by 4.54 percent yoy in the fourth quarter of 2022, lower than 13.58 percent yoy in the third quarter of 2022," he said.

Erwin added that the survey results also showed that non-bank financing was still a major source of financing for residential property development.

He said, in the fourth quarter of 2022, 72.51 percent of the total capital needs for housing project development came from internal funds.

"Meanwhile, from the consumer side, mortgage facilities are still the main choice in purchasing residential property with a share of 75.03 percent of the total financing," he said.

For information, the property sector is closely related to Bank Indonesia's policy because it is related to setting a benchmark interest rate.

Meanwhile, in the second half of 2022, the central bank continued to raise the interest rate from 3.50 percent to 5.50 at the close of the year.

This certainly has an impact on property consumers who live through a home ownership credit scheme, aka KPR.