InterCAFE LPPM IPB and PT Bank Tabungan Negara,Tbk released The New BTN House Price Index as a reference for house prices

InterCAFE LPPM IPB and PT Bank Tabungan Negara (BTN) released The New House Price Index (HPI) BTN with Updated Calculation Method, which can be used as a reference for the development of home buying and selling prices for developers and consumers. President Director of BTN Maryono said, this index isn’t only count House Price Index nationally, but also took into account the characteristics of the house, such as building area, house location, buying and selling prices. The HPI, Maryono claims, is the ‘most accurate’ price development index because the indicators used are far broader than the indexes that were previously issued, because we use data on home credit transactions throughout Indonesia and use updated methods to calculate the house price index.

Bank Indonesia Statistics Director, Dr. Yati Kurniati, who was also one of the speakers, revealed that “Bank Indonesia also has a House Price Index from developers spread across 18 districts / cities, this House Price Index has an important role in determining macroprudential policies for Bank Indonesia, if developments house prices are too high, so BI will try to hamper the pace of rising house prices through the Loan to Value limitation policy for banks in distributing housing loans. This is important because the development of house prices is one source of financial crisis in a country. “Furthermore, he revealed that” With the New BTN House Price Index, this will be a reference for us at BI to see the development of house prices and match with the results of our study which also calculates the house price index.

Dr. Iman Sugema as a Senior Researcher at InterCAFE LPPM IPB explained that “Bank BTN has the Big Data that is capable of seeing the overall house price index in Indonesia because it uses home purchase credit transaction data throughout Indonesia. The method used in calculating the BTN With Updated Calculation Method The New House Price Index uses the Matched Sales Method which looks at the growth of house prices with geometric series of transaction pairs per year, in contrast to the Index built by BI using the Chain Fisher Index, this index is expected can be one of the references of government policy and a reference for consumers when buying a house ”.

From the results of the HPI BTN study quarter II-2018, type 36 houses have the highest index compared to types 45 and 70, which is 167.74. When compared to the same period last year, there was an increase of 8.4%. As for type 45, the index recorded 143.97. Or up 5.51%. Meanwhile, type 70 has an index of 141.2 or an increase of 6.6% compared to last year. “Type 36 is very stable in demand and there is an ever-increasing price growth. Despite posting the highest annual growth, but on a monthly basis type 70 houses recorded the highest index growth, which was 1.13 percent, “said the President Director of BTN. Furthermore, “while for types 36 and 45 monthly growth were only 0.51 percent and 0.55 percent respectively. We don’t know why this has increased. But the possibility is now the type 70 market that used to be a lot of large size requests (now changing). For the record, although type 36 houses show the highest index growth, it cannot be an indication that the price offered is more expensive than other types” He Said. (MT)

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