The rising benchmark interest rate added pressure on the landed housing sector, property consultancy firm Colliers has said.

Colliers head of research department Ferry Salanto explained that the increasing benchmark interest rate would significantly impact the landed house sector considering 90 percent of its buyers were end-users -- or home-buyers -- who use the property loans or housing loans (KPR).

Meanwhile, the apartment sector would not be affected as much, as most apartments were bought by investor-buyers who mostly paid in cash installments instead of apartment ownership loans (KPA), Colliers estimated.

“This is a cause of concern because so far, the landed house sector is a significant contributor to the overall property sales,” he said in a press briefing on Wednesday. 

“The market encompasses many people nationwide. [Stakeholders] need to work on boosting [the people’s] buying power.”

Total disbursement credit for KPR reached Rp 557.49 trillion (US$36.71 billion) in July, Bank Indonesia (BI) data showed, significantly larger than the total disbursement credit for KPA, recorded at Rp 27.06 trillion for the same month.

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