Jakarta: The latest Residential Property Price Survey conducted by Bank Indonesia (BI) revealed more subdued residential property price growth in the fourth quarter of 2019, as reflected by a flatter Residential Property Price Index (RPPI) of 0.30 percent (qtq) compared with 0.50 percent (qtq) in the third quarter of 2019.
"Meanwhile, respondents predicted RPPI growth to hit 0.43 percent (qtq) in the first quarter of 2020," the central bank said in a press release issued on Wednesday, February 12, 2020.
Developers acknowledged a deep -16.33 percent (qtq) residential property sales contraction in the fourth quarter of 2019 after posting positive 16.18 percent (qtq) growth in the third quarter of 2019.
"Furthermore, the decline was felt across all types of residence," the central bank stated.
The survey results also reiterated that most developers (58.80 percent) relied on non-bank financing in the form of internal funds, while the majority of customers (71.88 percent) were inclined to borrow housing loans disbursed by the banking industry.