Monetary Policy and Demographics: Empirical Evidence for Housing Prices in Indonesia

Alghifari Mahdi Igamo (Universitas Sriwijaya)
Azwardi Azwardi (Universitas Sriwijaya)
Ardi Saputra (Universitas Sriwijaya)
Rizky Ghoffar Ismail (Universitas Sriwijaya)
Gustriani Gustriani (Universitas Sriwijaya)
Vinny Dwi Melliny (Universitas Sriwijaya)

SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
SIJDEB, Vol. 6, No. 4, December 2022

The housing market in Indonesia has different characteristics for each region. These differences underlie changes in house prices, factors that affect house prices include Loan to Value (LTV), mortgage rate, income, and population. The data was obtained from relevant agencies of Bank Indonesia and the Statistics Indonesia, using data from 2012-2021, which is a combination of time-series data and a cross-section of 18 cities in Indonesia. The research method used is a regression panel. The results of the study of income levels, population, and Loan to Ratio (LTV) are significant to house prices, except for mortgage rates which not be effective in depressing housing price during the observation period.