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The Relationship between Macroeconomy and Property Price on Housing Mortgage in Indonesia

Anastasia, Njo and DIYANTO, FERRY (2018) The Relationship between Macroeconomy and Property Price on Housing Mortgage in Indonesia. In: The 1st International Conference on Social Sciences, Humanities, Economics and law (IConShel), 06-09-2018 - 06-09-2018, Padang - Indonesia.

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      Abstract

      The growth of housing mortgage (HM) value displays a flourishing annual trend in line with the number of house purchase using the named credit facility. The amount of HM given by the bank to the buyer is affected by macroeconomic condition. The high inflation rate causes the peoples buying power to weaken and triggers the interest rate to drop. Buyer receives benefit in a condition of reduced HM cost, as well as in the contrary condition, causing the proportion of HM to go up. This research aims to examine the relationship between macroeconomic growths toward the proportion of HM in Indonesia. Macroeconomic variables reviewed are Gross Domestic Product (GDP), inflation level, residential property price, and interest rate. The research period extends between the years 2005-2016 through Auto Regressive Distributed Lag (ARDL) bound test model technique in order to see the relationship between each variable. As a result, the test reveals a significant long-term relationship between the variables of GDP, inflation level, and residential property price with the HM proportion. However, no relation is found between the amount of interest rate and HM proportion.

      Item Type: Conference or Workshop Item (Paper)
      Additional Information: Dalam proses terindeks scopus
      Uncontrolled Keywords: Macroeconomic, Property Price, Mortgage Proportion
      Subjects: H Social Sciences > HG Finance
      Divisions: Faculty of Economic > Finance Management Program
      Depositing User: Admin
      Date Deposited: 17 Sep 2018 01:08
      Last Modified: 02 Sep 2020 10:22
      URI: http://repository.petra.ac.id/id/eprint/18205

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