THE INFLUENCE OF RESIDENTIAL PROPERTY PRICES ON INDONESIAN ECONOMIC GROWTH

Abstract

Economic growth is an important measure for measuring the progress of economic development. By increasing production capacity to produce more output. This is because the economy develops or changes over time, and the changes or developments themselves put pressure on the economy. However, during the Covid-19 pandemic, conditions in various sectors slowed down, one of which was the property sector. The decline in residential property sales and the decline in demand for property resulted in a slowdown during the pandemic, namely that people implemented savings strategies to maintain expenses. So this research was conducted to determine the effect of residential property prices on Indonesian growth. The method used is simple panel regression using panel data from 2018 to 2022 in 8 cities in Indonesian. Based on the research that has been concluded, it can be concuded that the commercial property price index has an effect on economic growth because the variable has a probability value equal to 0.0033 < 0.05 or t count of 3.152677 > t table 1.69092, then reject H0 or accept Ha. Meanwhile, the residential property price index, construction cost index and inflation have no effect on economic growth. So in this research, the only influence is the commercial property price index. Because the available data is limited, researchers use the residential property price index, commercial property price index, construction cost index, and inflation as factors that can influence residential property prices on Indonesian economic growth. For research that when determining independent variables and dependent variables, it is necessary to conder adjustments to the sample to be used and other analysis methods. This is because these factors can influence the final results obtained based on statistical calculations.