According to Bank Indonesia, with Indonesian workers earning higher wages plus rising costs of construction materials, residential property prices have risen 3.32 percent year on year (yoy). Over the same period last year, prices rose 3.17 percent (yoy).

Thus, the residential property price index in the third half is 200.26 points or in comparison to second quarter 2017 up 0.50 percent.

This survey compared housing project developers across 14 Indonesian cities, such as Jabodebek and Banten, Bandung, Surabaya, Semarang, Yogyakarta, Manado, Makasar, Denpasar, Pontianak, Banjarmasin, Bandar Lampung, Palembang, Padang and Medan.

The central bank reported increases in house prices across the board including smaller houses, which rose 5.73 percent (yoy), while mid-type home prices rose 2.97 percent (yoy) and large type rose 1.51 percent (yoy).

Surabaya was noted for the highest rise in house prices at 6.86 percent (qtq).

"The West Ring Road construction from north to south Surabaya will connect many strategic facilities in Surabaya," BI said in the publication of the survey, Monday (11/13/2017).

Residential property sales volume also rose 2.58 percent (qtq), but appears to have slowed compared to second quarter of 2017 which amounted to 3.61 percent (qtq) with a lesser demand for residential homes and high-interest rates on Housing Loans.

Source: Central Bank , netralnews

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