Jakarta: The latest Residential Property Price Survey conducted by Bank Indonesia (BI) pointed to restrained growth of residential property prices in the third quarter of 2020.
It was confirmed by a relatively stable Residential Property Price Index (RPPI) of 1.51% (yoy) compared with 1.59% (yoy) in the previous period.
"Respondents predicted another period of muted RPPI growth in the fourth quarter of 2020 at 1.29% (yoy)," said BI Communication Department Head Onny Widjanarko in a media release on Thursday.
In terms of volume, residential property sales continued to decline in the third quarter of 2020, experiencing -30.93% (yoy) contraction compared with -25.60% (yoy) in the previous period, affecting all types of residence.
Regarding sources of finance, the survey showed that most developers continued to rely on nonbank financing in the form of internal funds, accounting for 66.87% of total capital.
Meanwhile, customers preferred housing loans as the primary source of financing for residential property purchases, dominating 76.02% of total financing.