BANDUNG-The price of residential property in Bandung in the third quarter of 2017 increased, but it declined for hotel.
Head of Representative of Bank Indonesia (BI) West Java (Jabar) Wiwiek Sisto Widayat said that the residential property price index recorded growth of 5.2 percent year on year. Where the increase in residential property prices occurs throughout the type of house.
Mentioned, the type of small house rose by 6.01%, the type of house is rising by 5.86% percent and large type rose 2.24%. This rise in property prices is due to rising prices of construction materials and workers' wages amidst the impact of the loan to value (LTV) lending rate in mid-2016.
"The performance of the property sector has increased as seen from the realestate sector growth rate of 9.85% from the data of West Java GDP of Q3 / 2017," he explained.
The increase in the performance of the property sector can not be separated from the improved access to banking as an alternative source of financing. The decline in loan interest rates from 11.4% from the previous quarter to 11.19% became the main driver of the increase in mortgage loans (KPR).
West Java BI mentions for the mortgage record increased by 15.14% much better than the previous quarter performance. Which means people demand for property is still high. Jo