Market Trends of Indonesia Mortgage/Loan Brokers Industry
Change in Real Estate price affecting Mortgage loan market.
Indonesia's residential property price index observed continuous growth, reaching 218.76 in 2022 from around 209 in the COVID-19 period; other than this, the Commercial property price index is almost at a stable level with nominal growth of 100 basis points.
This trend shows the growing importance of home loans compared to commercial property loans, with an increase in the mortgage value of house loans. The ownership rate of housing units has grown in the past few years, with a maximum share of households owning under household member names. All these trends create a positive impact on the mortgage market in Indonesia.
With further increases in mortgage prices, it is expected banks will not be increasing their interest rate much, as in case of default by the customer, they would be able to receive higher prices through the sale of assets/houses.
Access to Banking System affecting Indonesia Mortgage/Loan Broker Market.
Increased access to the banking system will be helping Indonesian population easily get loan facilities offered by banks. The total population of Indonesia is observing a positive population growth with an addition of an average of 1.5 million inhabitants annually. This increase in population growth requires banks to expand their reach and reach to the population providing all their facilities from providing credit to deposits.
Reaching a large population with a certain customer base interested in taking loans through a mortgage will help the growth of the mortgage loan market. During the previous year, almost half of the population base in Indonesia owned an account at a financial institution, with another half without access to the service of a bank or similar organizations. Access to the bank in Indonesia observed continuous growth, helping create a market for Mortgage loan providers.
