BI's Survey Indicates Rising Residential Property Prices in First Quarter of 2022

Jakarta: The latest Residential Property Price Survey conducted by Bank Indonesia (BI) confirmed that rising residential property prices accelerated in the first quarter of 2022.

According to BI's survey, the Residential Property Price Index (RPPI) increased to 1.87% (yoy) from 1.47% (yoy) in the fourth quarter of 2021. 
"Notwithstanding, respondents predict more restrained growth of residential property prices in the primary market in the second quarter of 2022 at 1.16% (yoy)," BI Communication Department Head Erwin Haryono said in a press release on Wednesday.

In terms of sales, the latest survey indicated a shallower contraction of residential property sales in the primary market, improving to -10.11% (yoy) in the first quarter of 2022 from -11.60% (yoy) in the fourth quarter of 2021.

Based on the sources of finance, the Residential Property Price Survey also showed that most developers continue to rely on non-bank financing in the form of internal funds for residential property development, dominating 65.50% of total capital in the first quarter of 2022. 

On the consumer side, housing loans disbursed by the banking industry remain the preferred source of financing residential property purchases, accounting for 69.5% of the total.

(WAH)