Jakarta: The latest Residential Property Price Survey conducted by Bank Indonesia (BI) indicated another period of slower annual residential property price growth in the primary market, as reflected by a Residential Property Price Index (RPPI) of 1.59 percent (yoy) in the second quarter of 2020, down from 1.68 percent (yoy) in the previous period.
"Small residences were the main drag on rising residential property prices," the central bank said in a statement on Wednesday.
In addition, survey respondents predicted further moderation in the third quarter of 2020, with a reading of 1.19 percent (yoy).
Respondents confirmed shrinking residential property sales in the second quarter of 2020, despite the contraction easing to -25.60 percent (yoy) from -43.19 percent (yoy) in the previous period.
Declining residential property sales in the second quarter of 2020 affected all types of residence.
The survey also showed that most developers continued to rely on non-bank financing in the form of internal funds, accounting for 67.67 percent of total capital.
Meanwhile, from the customers perspective, housing loans remained the primary form of financing for residential property purchase, accounting for 78.41 percent of respondents.