Bank Indonesia Survey of Residential Property Price indicates that residential property prices have limited growth in the fourth quarter of 2020.

This is reflected in the increase in the Residential Property Price Index (RPPI) in the fourth quarter of 2020 by 1.43% (YoY), slightly lower than the growth in the previous quarter of 1.51% (YoY).

"RPPI is predicted to have limited growth in the first quarter of 2021 by 1.17% (YoY)," said BI Executive Director Erwin Haryono in an official statement on Tuesday (16/2).

Residential property sales volume growth in the fourth quarter of 2020 was recorded to improve, although it was still contracting. This was reflected in the contraction of residential property sales by -20.59% (YoY) in the fourth quarter of 2020, better than the 30.93% (YoY) contraction in the previous quarter. The decline in residential property sales occurred in all types of houses.

According to financing sources, the survey results show that developers still rely on non-banking financing for residential property development.

This is reflected in the portion of the developer's internal funds to finance property development, which reached 65.46% of the total capital requirement in the fourth quarter of 2020. From the consumer side, credit financing still relies on sources from banks.