The latest Residential Property Price Survey conducted by Bank Indonesia in the third quarter of 2023 indicates “that residential property prices in the primary market are still rising annually, with growth of the Residential Property Price Index (RPPI) accelerating to 1.96% (yoy) from 1.92% (yoy) in the second quarter of 2023.”
In terms of sales, the latest survey indicates “a further opportunity to improve residential property sales in the primary market in the third quarter of 2023, as sales experienced a shallower 6.59% (yoy) contraction compared with a 12.30% (yoy) contraction in the previous period.”
Based on the sources of finance, the latest Residential Property Price Survey also “shows that most developers continued to rely on non-bank financing in the form of internal funds for residential property development, dominating 73.46% of total capital in the third quarter of 2023. On the consumer side, housing loans disbursed by the banking industry remained the preferred source of financing residential property purchases, accounting for 75.50% of total financing in the reporting period.”
The Residential Property Price Survey is “available in full for download via the official Bank Indonesia website.”
In other updates, it was reported in August that Bank Indonesia, Bank Negara Malaysia, and the Bank of Thailand have reportedly concluded three bilateral Memorandum of Understanding (MoUs) on 25 August 2023.
These MoUs are the Framework for Cooperation to Promote Bilateral Transactions in Local Currencies between the countries. The scope of the framework is “expanded to include more eligible cross-border transactions beyond trade and direct investment.” These MoUs are set to strengthen cross-border economic activities, “enhance regional financial market stability, and deepen local currency markets in the signing countries.”
Bank Indonesia (BI), Bank Negara Malaysia (BNM), and the Bank of Thailand (BOT) concluded “the signing of three bilateral Memorandum of Understanding (MoUs) on 25 August 2023.” These MoUs are the Framework for Cooperation “to Promote Bilateral Transactions in Local Currencies between the countries.”
Bank Indonesia Governor Perry Warjiyo, Bank Negara Malaysia Governor Abdul Rasheed Ghaffour, and Bank of Thailand Governor Sethaput Suthiwartnarueput signed the bilateral MoUs.
The signing took place on “the sidelines of the ASEAN Finance Ministers and Central Bank Governors’ Meeting in Jakarta, Indonesia.”