Jakarta: Respondents of the Bank Indonesia (BI) Residential Property Price Survey confirmed slower rising prices of residential property in the primary market during the second quarter of 2019.
Such developments were explained by a 0.20 percent (qtq) swell in the Residential Property Price Index (RPPI), down from 0.49% percent (qtq) the quarter earlier.
"All house types were affected by slower prices," the central bank in a written statement released on Monday.
Nevertheless, the respondents expected residential property prices to rebound in the third quarter of 2019, as indicated by an improvement in the RPPI to 0.76 percent (yoy).
Developers reported a -15,90 percent (qtq) contraction of residential property sales in the reporting period, down from 23,77 percent (qtq) in the previous period.
"Respondents confirmed that small and medium houses were the main drag on sales," the central bank noted.
Most respondents cited slowing purchasing power, high lending rates on housing loan, and high level of housing prices as the most binding constraints to sales growth in the second quarter of 2019.
The Bank Indonesia Residential Property Price Survey also revealed that developers primarily sought nonbank residential property financing, as reflected by 60,57 percent of developers relying on internal funds.
On the other hand, customers were inclined to borrow when purchasing property, with most consumers still favouring housing loan facilities.