The property sector would benefit from the recent BI Rate cut to 6.75%. BI Rate cut would prompt the cut in loan interest rate for housing segment as 75% of property purchases were funded by banking loan. On average, loan interest rate for housing segment (KPR) is set above 10%. In 2015, the purchase of property funded by banking loan declined to 30%, but it is expected to grow to over 50% this year.
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