Wealthy Individuals Frequently Utilise Mortgages, Here Is Why
Mortgages (KPR) are not exclusively utilised by the middle class. Developer NavaPark BSD City has noted that the majority of premium home buyers continue to use mortgage facilities as a strategy for financial management and liquidity.
Wanto Ngali, Head of Marketing & Business Development at NavaPark, stated that approximately 60 per cent of premium residential buyers in the area use mortgages, despite having the financial capacity to purchase properties in cash. “The use of mortgages reaches almost 60 per cent,” Wanto remarked during the launch of Island Villa at NavaPark BSD City on Wednesday.
According to him, the decision to use mortgages is primarily driven by the need to maintain cash flow and financial flexibility, particularly for buyers who manage large-scale businesses or investment portfolios. “We observe that many buyers still require cash flow for the companies or businesses they operate. Therefore, it is not due to an inability to pay in cash,” he explained.
This phenomenon is evident across several NavaPark premium projects targeting ultra-high-net-worth individuals (UHNWI). Despite possessing significant assets, many consumers continue to utilise banking financing facilities. Wanto explained that most buyers are long-term NavaPark residents who are upgrading their residences in line with the growth of their businesses and assets.
Recently, NavaPark, in collaboration with Hongkong Land, launched the Island Villa, consisting of 35 units: 30 Premium type units and five Signature type units. Prices range from Rp80 billion to Rp140 billion per unit. Although marketed with limited availability, the developer claims market response has been positive. Of the 12 units offered in the initial phase, six have been sold, including three Signature type units, which are the highest-priced products in the cluster.
According to the developer, the trend of using mortgages in the premium housing segment indicates that high-end buyers are increasingly prioritising efficient asset management and liquidity over making full cash payments for property acquisitions.