Prices are rising slowly
According to the SHPR, BI's quarterly survey of primary-market residential prices, the IHPR price index rose 0.69% year on year in the second quarter of 2026. Growth was 0.62% in the first quarter.
BI itself describes the increase as limited.
Sales are recovering
Home sales fell 2.36% year on year. That is a marked improvement on the first quarter, when sales dropped 25.67%.
Sales of small and large homes improved. Demand for medium-sized homes remained subdued, according to the survey.
How building and buying are funded
Builders rely mostly on their own money. Internal company funds cover 73.28% of construction financing.
Buyers, by contrast, lean on banks. 70.05% of purchases use KPR (home loans). That is why BI's rate rise to 5.75% in June feeds directly into this market.
Builders' heavy reliance on their own funds means bank finance matters less for construction than for purchases. That softens the direct effect of rates on building, though not on demand.
BI raised its policy rate twice in June. Loan rates adjust with a lag, so the effect on mortgages may show up in later quarters.
What the survey covers
The SHPR polls residential developers in the primary market, meaning those selling new homes. The index tracks the prices at which they sell.
The survey splits housing into small, medium and large homes. It does not cover resales and gives no separate reading for resort property or villas rented to tourists.