Bank Indonesia: property market healthy despite rising apartment loans | Kontan
(Insider Stories)-Bank Indonesia tells Kontan the property market is healthy and bubble-free despite steep growth in loans for apartment purchases as apartments still account for a very small part of the overall loan market while rising apartment demand is due to middle-class growth rather than speculative buying.
An 84% on-year jump in December to 10.27 trillion rupiah ($1.1 billion) brought apartment loans to only 4.2% of the overall housing loan market and 0.37% of total bank lending, while a 70% loan-to-value regulation for apartments implemented last year has cooled lending growth, BI deputy governors tell the newsportal.
Loans for shophouses also grew sharply, rising 31% to IDR19.98 trillion, but growth in overall home loans was milder at 19%, it says.
http://keuangan.kontan.co.id/news/benarkah-indonesia-terancam-bubble-properti
