JAKARTA - Residential property prices grew slowly in quarter IV-2019 and are predicted to continue in quarter I-2020. The Residential Property Price Index (IHPR) in the fourth quarter of 2019 grew 0.30% (qtq), lower than 0.50% (qtq) in the previous quarter. In the first quarter of 2020, IHPR growth is predicted to increase slightly to 0.43% (qtq).
In the midst of limited price increases, residential property sales in quarter IV-2019 declined. Residential property price survey results indicate residential property sales fell 16.33% (qtq), after the previous quarter grew 16.18% (qtq). The decline in house sales occurred in all types of houses.
The survey results also show that developers still rely on internal company funds as the main source of financing for housing projects. This is reflected in the portion of the use of internal developer funds which reached 58.80%. Meanwhile, the majority of respondents (71.88%) purchase houses using financing sources from KPR banking facilities. (LM)