BI: Slow Growth in Residential Property Prices

By : Ahmad Fadli And Aldi Firhand. A | Friday, August 10 2018 - 23:10 IWST

Bank Indonesia
Bank Indonesia

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.

News Comment

Today's Industry

N-Tron® Series NT5000

Kamis, 02 Februari 2023 - 12:25 WIB

New Gigabit Ethernet Switches From Red Lion Simplify Configuration With Robust Performance and Security Features

N-Tron® Series NT5000 gigabit industrial switches set a new standard for performance, reliability and ease of use, with security features designed to keep networks connected and protected Red…

PT Inocycle Technology Group Tbk (INOV)

Kamis, 02 Februari 2023 - 11:23 WIB

Rising Trends in Post-Covid Use of Recycled Products Benefit INOV

PT Inocycle Technology Group Tbk (INOV), an issuer engaged in recycling plastic bottle waste (PET) into Recycled Polyester Staple Fiber (RePSF), optimistic that its sales in 2023 will continue…

PT Autopedia Sukses Lestari Tbk (ASLC)

Rabu, 25 Januari 2023 - 09:30 WIB

ASLC Successfully Surpasses 2022 Used Car Sales Target via Caroline.id

PT Autopedia Sukses Lestari Tbk (ASLC), a company engaged in used vehicles auction and trading of used cars, succeeded in selling 2,481 units of used cars through used car dealers under its…

A woman is paying her attention to the Jakarta Composite Index board movement. (Document of INDUSTRY.co.id)

Kamis, 05 Januari 2023 - 22:29 WIB

New Economic Board, GOTO Share Moves Closer to Global Indices

The presence of the New Economic Board on the Indonesia Stock Exchange (IDX) brings many benefits to PT GoTo Gojek Tokopedia Tbk (GOTO). One of them is getting closer to the shares listing of…

PT Alkindo Naratama Tbk (“ALDO”)

Senin, 19 Desember 2022 - 23:51 WIB

ALDO Aims 2023 Sales to Increase More Than Double

PT Alkindo Naratama Tbk (“ALDO”), a listed company engaged in the integrated paper and chemical business are optimistic that the Company's performance in 2023 will improve, in line with…