REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) recorded that residential property price rose in second quarter of 2014. It increased 1.69 percent compared to 1.45 percent in same period last year. The increase of raw material prices and labor costs are main factors causing the expensive price.

According to Executive Director of Statistic Department in BI, Hendy Sulistiowaty, despite increases quarterly, the annual data showed a slow down, from 7.92 percent to 7.4 percent in second quarter of 2014.

"The figure will be positive in third quarter of 2014 despite slower growth," Sulistiowaty said in Jakarta recently.

The highest increase (2.09 percent) occured in small type, while large type was relatively low. Manado and Makassar experienced the increase in large type up to 9.54 percent. It is in line with economic growth in these regions, which invites developers to build more residential properties.

This condition will continue in third quarter of 2014. Majority of consumers (73.69 percent) using housing loan (KPR) to purchase the transaction, especially on small type. The banking interest rate is ranging from 9-12 percent.

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