Monthly bulletin August 2018
- Indonesia has been scrapping its 15% minimum mortgage down payment for first-time homebuyers and relaxing rules on loan disbursements to encourage buying in the property market and support listless credit expansion.
- In Thailand, a higher ratio of new mortgages with loan-to-value rates exceeding 90%, the increasing debt-to-income ratio, and a credit quality deterioration of mortgages may signal a fragile outlook for the residential market.
From August 2018, Indonesia has been scrapping its 15% minimum mortgage down payment for first-time homebuyers and relaxing rules on loan disbursements to encourage buying in the property market and support listless credit expansion. Meanwhile, Malaysia’s market could face both opportunities and challenges after the newly-elected government announced to cancel some mega infrastructure projects, including the high-speed rail project linking Kuala Lumpur and Singapore and the Mass Rapid Transit Line 3, and scrap a 6-percent goods-and-services tax. In Thailand, a higher ratio of new mortgages with loan-to-value rates exceeding 90%, the increasing debt-to-income ratio, and a credit quality deterioration of mortgages may signal a fragile outlook for the residential market.
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