The Bank Indonesia Residential Property Price Survey (SHPR) indicates that residential property prices in the primary market showed limited growth in Q1 2025.

The Residential Property Price Index (IHPR) grew by 1.07% year-on-year (yoy) in the first quarter of 2025, which is lower than the 1.39% yoy growth seen in Q4 2024.

Changes in Property Sales Trends

This limited growth in property prices was influenced by the increased sales of small homes in Q1 2025, alongside a decline in sales of medium and large homes.

Overall, residential property sales increased by 0.73% yoy, a recovery from the 15.09% yoy contraction in the previous quarter.

Financing for Residential Property Development

The survey also revealed that the primary source of funding for residential property development still comes from developers' internal funds, which account for 77.28% of total financing.

On the consumer side, the majority of home purchases in the primary market are made through Mortgage Loan (KPR) schemes, making up 70.68% of the total financing.

PHOTO: UNSPLASH

This article was created with AI assistance.