BI: Slow Growth in Residential Property Prices

INDUSTRY.co.id - Jakarta - Bank Indonesia (BI) Residential Property Price (SHPR) Survey in quarter II-2018 indicates a slowdown in the increase in residential property prices in the primary market.

This is reflected in the Residential Property Price Index (IHPR) in the second quarter of 2018 which grew 0.76% (qtq), slowing down from 1.42% (qtq) in the previous quarter.

"The slowing increase in residential property prices occurred in all types of houses. In the future, the slowing increase in housing prices is expected to continue in the third quarter of 2018 at 0.55% (qtq)," said Director of the Wuryandani Statistics Department in Jakarta.

In quarter II-2018, residential property sales volume was recorded at -0.08% (qtq), lower than 10.55% (qtq) in the previous quarter. The decline in residential property sales was caused by a decline in sales in medium-sized and large-type houses. Meanwhile, sales of small types of houses increased.

"Some of the factors that led to the decline in residential property sales in the second quarter of 2018 were the high interest rates on housing loans (KPR) and the minimum down payment (DP) limit on home loans," he said.

The survey results show that the financing of residential property development by developers mainly comes from non-banking. This was reflected in development financing sourced from internal developer funds which reached 58.11%.

Meanwhile, as much as 75.21% of consumers use mortgage facilities as the main facility for the purchase of residential property.