Central Bank Notes Indonesia's Property Price Hike in Q2/2023

TEMPO.CO, Jakarta - Bank Indonesia or BI said that the price of the property will increase further in Q4/2024, as seen from the central bank's Residential Property Price Survey (SHPR). BI head of communications Erwin Haryono said that the SHPR results indicated growth in residential property prices in the primary market increased in the fourth quarter although not as high as the growth in the previous quarter.

In an official statement on Feb. 19, Erwin said that the Residential Property Price Index or IHPR in the fourth quarter of 2023 grew by 1.74 percent (yoy), lower than Q3/2023's 1.96 percent growth.

Even though property prices increased, residential property sales in the primary market also increased in the fourth quarter of 2023 to 3.27 percent (yoy), a massive rebound from the previous quarter's 6.59 percent (yoy) contraction.

"The survey also shows that financing for residential property development mainly comes from the developer's internal funds with a share of 72.82 percent," he said.

From the consumer side, Erwin added, the main financing scheme used in purchasing a primary home is the KPR housing, with a portion of 75.89 percent of the total home financing disbursement.

Amelia Rahima Sari

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