Top 5 Cities with the Highest House Price Growth in Q2 2022

Bank Indonesia (BI) estimates that the annual growth of detached house prices will slow down in the May-June 2022 period, despite the government extending tax incentives for residential property purchases.

This is reflected in the Residential Property Price Index (IHPR), which is projected to grow by 1.39% (year-on-year/yoy) in Q2 2022. This is slower than the growth in Q1 2022, which reached 1.77% (yoy).

"The projected slowdown in primary residential house prices is attributed to price adjustments already made by developers since the beginning of 2022," BI wrote in its report released on Wednesday (18/5/2022).

The slowdown in price growth is expected to occur for all house types, including small, medium, and large houses.

The price of small houses is expected to slow down from 2.01% (yoy) in Q1 to 1.36% (yoy) in Q2 2022.

Meanwhile, the price of medium-sized houses is predicted to slow down from 2.18% (yoy) to 1.88% (yoy) in the same period. The price of large houses is expected to slow from 1.11% (yoy) to 0.91% (yoy).

During the second quarter of this year, the highest house price growth is predicted to occur in Yogyakarta, Manado, Samarinda, Surabaya, and Pontianak, as shown in the graph.

Although high, price growth in these cities generally remains slower than in the previous quarter.

Of the 18 cities surveyed by BI, only 5 cities are predicted to experience higher annual house price growth in Q2 2022 compared to the previous quarter, namely Makassar, Samarinda, Denpasar, Banjarmasin, and Surabaya.