To make house more affordable for low income people
The Ministry of Housing just raises the price of subsidized low cost housing from a maximum of IDR49 million to IDR55 million for target group I, from a maximum IDR37 million to IDR41.5 million for target group II, and from a maximum of IDR25 million to IDR28 million for target group III. The reason behind this price hike is more or less due to the recently increase of building materials. With the price hike, the developers will expectedly be encouraged to build as many as possible low cost houses, and therefore the supply will also increase. The question is can we expect that with the price increase, the demand of subsidized low cost house will also increase? Read more
A year of hope for property
As the economy of Indonesia still depends on bank loans, the robust bank lending can help economy to expand. Bankers are optimistic that bank loan outstanding will grow at least 25 percent compared to only about 22 percent last year, that will help the economy to expand 6,4-6,8 percent. This optimism is based on the prediction that Bank Indonesia’s benchmark interest rate (BI rate) will continue to drop from its current level of 8 percent to around 7 percent. The down trend of BI rate will give banks more room to cut their lending rates. Read more
