Wednesday, 11 December 2019 | 10:36 WIB

BI Survey: Residential Property Prices Show Slow Growth in Third Quarter of 2019

BI Survey: Residential Property Prices Show Slow Growth in Third Quarter of 2019 (mapio)

JAKARTA, NETRALNEWS.COM - A survey conducted by Bank Indonesia (BI) shows that residential property prices in the third quarter of 2019 continues to experience limited growth. However, the level of property sales in the primary market has grown 16.18 percent (quarter-to-quarter).

Based on the official statement released by the Communication Department of Bank Indonesia in Jakarta, on Monday (11/11/2019), the results of the survey of residential property prices in the primary market in the third quarter of 2019 were still limited.

This condition is reflected in the Residential Property Price Index (IHPR) as of the third quarter of 2019 which grew by 0.5 percent (qtq), as compared to 0.41 percent (qtq) in the previous quarter.

The Indonesian central bank estimates the growth rate of IHPR to slow down slightly to 0.45 percent (qtq) in the fourth quarter of 2019. "Amid the limited price growth, residential property sales in the third quarter of 2019 rose 16.18 percent (qtq), higher than the contraction of -15.9 percent (qtq) in the previous quarter," the survey report said.

The BI report also said that the increase in residential property sales was mainly driven by sales growth of small and large type houses, while sales of medium type houses remained contracted.

BI survey results also showed that the financing of residential property development by developers was still supported by the developers' financial capability. This is reflected in the portion of the use of internal developer funds which reached 60.44 percent.

"Meanwhile, for the purchase of residential property by consumers, the majority (76.02 percent) use housing loan (KPR) facility from banks," the report said.