Unemployed Money From The Middle Class And Up, BI: Buying A Home Becomes An Attractive Option For Them

Illustration. (Photo: Unsplash)

JAKARTA - Bank Indonesia (BI) assesses that the property sector can be an attractive option for middle and upper income people during the COVID-19 pandemic.

"This is a prospect for property in the future, especially if we look at it now from the perspective of limited expenditure for the high income group so that property will be an attractive option for middle to upper class households," said Dhaha Kuantan from the BI Macroprudential Policy Department in an online discussion " Behind the 0 Percent DP Policy "in Jakarta, quoted from Antara, Wednesday, April 28.

He assessed that from the expenditure side of the middle to upper class, they did not have much expenditure in a pandemic like now, so the property sector still has potential during a pandemic.

"If we look at the latest developments related to pivoting or pre-sales properties, I see that some developers have experienced a sharp increase and this indicates that the property sector will increase in the future," he said.

Dhaha also added that expenditures related to the upper middle class, although the level of expenditure has started to recover somewhat, it is still below the level of expenditure before the pandemic.

This is best proportional to the level of expenditure in terms of middle to lower and middle class households, which have actually started to improve.

"This is of course what we encourage because the property sector, especially for the middle to upper class, so that consumption can move even more, especially for distribution to the property sector," said Dhaha.

In his presentation, he said that people's preference to buy a house during the pandemic was quite high at 60 percent, even investment interest in the property sector this year has increased by 21 percent compared to 2020 by 18 percent.

Property price preferences by consumers themselves, where as many as 25 percent are interested in property prices in the range of IDR 300 million to IDR 750 million, and around 22 percent are interested in property prices in the range of IDR 1.5 billion to IDR 4 billion.