Jakarta (Indonesia Window) – The result of a survey made by Bank Indonesia (BI) has indicated that the country’s residential property prices in the primary market grew steadily in the first quarter of 2022, the central bank said on Wednesday.

This is reflected in the Residential Property Price Index growth in the first quarter of 2022 which was recorded at 1.87 percent year-on-year (yoy), higher than that in the previous quarter of 1.47 percent (yoy).

Residential property prices in the primary market are predicted to grow limitedly in the second quarter of 2022 by 1.16 percent (yoy), Head of BI’s Communications Department, Erwin Haryono, said in an official statement.

In terms of sales, the survey result for the first quarter of 2022 indicated an improvement in sales of residential properties in the primary market, although they were still contracting, he said.

This improvement is reflected in residential property sales which contracted by 10.11 percent (yoy) in the first quarter of 2022, better than the contraction in the previous quarter of 11.60 percent (yoy), he added.

The survey result also shows that non-banking financing is still the main source of financing for residential property development, Erwin explained.

In the first quarter of 2022, 65.50 percent of the total capital requirement for housing project development came from internal funds, he said, adding that from the consumer side, banking financing with credit facilities was still the main choice in purchasing residential properties with a share of 69.54 percent of the total financing.

Reporting by Indonesia Window