House ownership credits (KPR) and apartment ownership credits (KPA) achieved the highest growth. In the primary market, condominium sales showed a positive trend, reaching 97%. This has prompted banks to offer KPA credits.
A property market survey conducted by Bank Indonesia (Central Bank) showed a rise in most property credits in Q1-2011. KPR/KPA credits achieved the highest growth (qtq), which was followed by construction credits that grew 2.37% (qtq), while real estate loans declined 1.89% (qtq).
The property credits included those going to contractors who used them to build office blocks, hotels, housing and shopping complexes, and also credits to individuals for house ownership and renovation.
KPR/KPA credits comprised loans for buying or renovating houses and apartments. Construction credits went to contractors which used them to build and renovate buildings, roads and other public facilities.
Meanwhile, real estate loans were flowed for the construction of buildings, apartments, residential houses, market buildings and others, which were all meant for rent or sale.
In terms of market share, KPR/KPA loans held the greatest market share namely 59.04% (a 58.18% rise), which was followed by construction credits that held 26.01% (a decline from 26.14%) and real estate credits that were 14.95% (a decline from 15.68%).
Meanwhile, in the property real sector, the rates of condo sales in Jakarta are quite high at this time, namely 97%, with condo demand grew 13% in Q1-2011. According to data at Procon Savills, of the total supply of condos in Jakarta in Q3-2011 which totaled 76,827 units, only 635 units were new supply. They were lower than the Q4-2011 supply that amounted to 2,900 units. New supply of condos in Jakarta is predicted to rise 5%-10% per year. It is estimated that within the next one year, up to end-2012, new supply of condos will reach 10.600 units.
With new supply growing 5%-10% annually and the annual demand rising 13%, it can be said that condo supply in Jakarta is still far from oversupply at this time. Moreover, at this time developers do not focus their plans on condo development in CBD Jakarta because they have found it more difficult to acquire land in business center areas. If there is any, its prices are so high.
Accordingly, condo project areas have now shifted to non-CBD places like Jl. MT Haryono, Jl. S. Parman and several other secondary areas.
A survey conducted by Bank Indonesia on 43 Jakarta-based commercial banks — whose credit shares reaching a combined 80% of the total credits of national commercial banks – disclosed their similar views that in 2011 property credits will rise 12.2% from last year. Property credit realization in 2010 reached Rp249.7 trillion, or a 15.07% rise from Rp217 trillion in 2009.