Bank lending for property ownership in May 2017 grew by 7.34 percent year-on-year (YoY) and increased by 0.68 percent month-on-month (MoM). Total property ownership credit in May 2017 reached Rp 403.41 trillion, compared to Rp 375.84 trillion in May 2016. This comprises home ownership loans of Rp 362.23 trillion, flat/apartment ownership loans of Rp 29 trillion, and shop house/office house (Ruko/Rukan) loans of Rp 27.89 trillion.
Compared to the end of December 2016, consumer property ownership credit grew by 2.39 percent. Unfortunately, this increase in credit was also accompanied by a rise in non-performing loans (NPLs). The NPL for home ownership loans in May 2017 increased by 41 basis points (bps) to 2.86 percent from its position at the end of 2016. Similarly, the NPL for apartment ownership also increased by 30 bps to 2.55 percent, while the NPL for shop house/office house ownership recorded the highest increase, namely 60 bps to 4.48 percent.
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