"Indeed, (the demand for residential properties) increased in 2021, but the price remained under control," deputy director of the macroprudential policy department of the central bank, Ndari Surjaningsih, said at a webinar hosted by online property website Rumah123.com in Jakarta on Tuesday.
The central bank recorded a significant increase in property sales, particularly of middle- and large-type houses, in the third quarter of 2021, she noted.
Despite property prices recording positive growth, the national price growth was relatively low compared with similar trends in other countries, the deputy director said, adding that the residential property price increase was recorded in many major cities in Indonesia.
Besides the property price increase, the central bank also recorded a growth in public housing credit applications last year, she informed.
The interest rate cut, relaxation of the loan-to-value ratio criteria, and value-added tax borne by the government were among factors that boosted the increase in public housing credit applications in 2021, the deputy director informed.
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"Throughout 2021, millennial homebuyers contributed the greatest percentage to the growth in the public housing credit application with a relatively controllable risk," Surjaningsih said.
She affirmed that the central bank will continue implementing policies that are favorable to promoting the property sector in the foreseeable future, including by designating the highest loan-to-value ratio on property funding of 100 percent for all property types until December 31, 2022.
Bank Indonesia has also halted the provision of gradual disbursement for pre-construction properties to boost credit growth in the property sector without diminishing the circumspection principle, she said.
"We hope those policies will further promote growth in the property sector," Surjaningsih remarked.
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