Property prices in the fourth quarter of last year recorded positive growth. This fact was conveyed by Bank Indonesia (BI). They concluded from the Residential Property Price Survey (SHPR) conducted for properties in the form of landed houses, flats, apartments, condominiums to villas.
The growth of the Residential Property Price Index (IHPR) in the fourth quarter of 2021 recorded an annual increase of 1.47 percent. This is considered better than the previous quarter which was recorded at 1.41 percent on an annual basis.
Furthermore, BI also projects that the price of primarily residential property will increase, but not higher, namely by 1.29 percent on an annual basis. This is due to the continuation of the DTP VAT discount program provided by the government until September this year.
“From the sales side, the survey results indicate an improvement in the contraction of residential property sales in the primary market. This is reflected in residential property sales which contracted 11.60 percent in the fourth quarter of 2021, lower than the 15.19 percent contraction in the previous quarter,” said the Head BI Communication Department Erwin Haryono in an official statement, Wednesday (16/1).
The central bank also noted that most of the financing received by developers or developers for property development still relies on fees from non-banks
“In the fourth quarter of 2021, 63.33 percent of the total capital requirement for housing project development comes from internal funds,” he wrote.
From the consumer side, the majority of consumers still use banking facilities to buy housing, one of which is through Public Housing Credit (KPR) with a share of 75.65 percent of total financing.
The Rise of the Property Business
Meanwhile, Knight Frank Research Senior Research Advisor Syarifah Syaukat said, at the end of 2021, Knight Frank had surveyed respondents from property activists such as developers, financial institutions, and property advisors.
He explained, “From the survey, we found that property players estimate that this year there are three sectors that are expected to be the best performing sectors, namely residential, industrial and logistics, and retail,” he explained.
Knight Frank Indonesia also estimates that in 2022 the momentum for the property sector’s slow revival. Property activists also believe that property growth is expected to rise or rebound.
Meanwhile, in semester II/2021, there was an additional launching of new landed houses of 6,800 per square meter. The cumulative average sales level reached 89 percent, up from 2020 which was at the level of 72 percent.
In terms of price affordability, almost 70 percent of the products sold in semester II/2021 were priced below Rp. 1.3 billion.
Positive demand is still dominated by logistics service providers who continue to expand, making the occupancy rate of modern warehouse space, especially in Greater Jakarta, increase to 94 percent.
. They concluded from the Residential Property Price Survey (SHPR) conducted for properties in the form of landed houses, flats, apartments, condominiums to villas.){kind=link}