Bank Indonesia Survey: Property Prices Rise Limited

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) reports that the Residential Property Price Survey (SHPR) results indicate that the development of residential property prices in the primary market in the first quarter of 2023 has increased to a limited extent.

Head of the BI Communication Department Erwin Haryono said the Residential Property Price Index (IHPR) in the first quarter of 2023 was recorded at 1.79 percent year on year (yoy).

"This figure is slightly lower than 2.00 percent yoy in the previous quarter," he said in a press statement today, Wednesday, May 17.

Erwin explained that the sales side of the survey results indicated that residential property sales in the primary market in the first quarter of 2023 had decreased.

"Residential property sales contracted by 8.26 percent yoy in the first quarter of 2023, lower than sales in the previous quarter which grew positively by 4.54 percent yoy," he said.

According to Erwin, the survey results also show that non-bank financing is still the main source of financing for residential property development.

He said, in the first three months of this year it was at the level of 73.31 percent of the total capital requirement for housing project development came from internal funds.

"Meanwhile, in terms of consumers, mortgage facilities are still the main choice in purchasing residential property with a share of 74.83 percent of total financing," Erwin concluded.