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BI notes property price increase in Q4 2023
A Bank Indonesia survey found that property prices increased by 1.74 percent year-on-year in the fourth quarter of 2023.
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This aerial picture taken on August 4, 2021, shows a suburban housing complex for residents in Jakarta. (AFP/Bay Ismoyo)
B
ank Indonesia found that property prices increased slightly in the fourth quarter of 2023, according to results of its Residential Property Price Survey, BI spokesman Erwin Haryono said on Monday, as quoted by tempo.co.
“BI’s survey results indicate that residential property prices increased in the primary market in the fourth quarter of 2023, although not as high as the climb in the previous quarter,” he said.
The Residential Property Price Index in the fourth quarter of 2023 increased by 1.74 percent compared with the same period the previous year. The growth rate was, however, lower than the 1.96 percent recorded in the third quarter of 2023.
The rise in house prices was primarily observed in Pontianak, West Kalimantan, showing an increase of 3.57 percent year-on-year (yoy), followed by Banjarmasin, South Kalimantan, at 0.7 percent yoy and Manado, North Sulawesi, at 0.32 percent yoy.
On the other hand, some cities witnessed a decline in house prices, with Balikpapan, East Kalimantan, experiencing a decrease of approximately 0.78 percent yoy, Yogyakarta at 0.77 percent yoy and Bandung, West Java, at 0.73 percent yoy.
Despite the rise in property prices, residential property sales in the primary market also saw an increase in the fourth quarter of 2023, rising by 3.27 percent yoy. This performance was an improvement of the previous quarter, which experienced a contraction of 6.59 percent yoy.
Erwin said financing for residential property development mainly came from the developer’s internal funds, accounting for 72.82 percent. Followed by bank loans at 16.07 percent and consumer payments at 7.14 percent.
