Property prices in Bali Province continue to increase as a result of rising building material prices and higher wages for construction workers.
Head of Bank Indonesia’s Bali Representative Office, Achris Sarwani, explained that the results of the Residential Property Price Survey conducted by Bank Indonesia Bali indicate that residential property prices in the primary market during the first quarter of 2026 experienced limited growth.
“The Residential Property Price Index in Q1/2026 grew by 0.87% (yoy), slowing compared to Q4/2025 which was 1.06% (yoy),” Achris stated.
In Q1/2026, growth in the Residential Property Price Index was mainly driven by higher building costs, influenced by rising production factor expenses.
As in the previous period, most respondents assessed that surging building material prices and increased labor wages were the main factors driving house price increases.
“The impact of the war in the Middle East also triggered a rise in oil prices, which affected higher distribution costs for building materials,” Achris added.
In addition, the increase in building costs was also influenced by the weakening of the Rupiah exchange rate, which made the prices of several imported construction materials more expensive.
On the other hand, amid the trend of rising property prices, developers in Bali still see several factors as challenges in selling primary residential properties.
Some of the main obstacles include high mortgage interest rates, limited land availability, tax burdens, and large down payments required for home purchases.
Sources: Bisnis, BaliHotNews