OREANDA-NEWS. The consolidated marketing sales for seven major Indonesian property developers fell by a steep 59% yoy in 3Q15. This is because domestic demand for housing remained weak, which led to developers putting off a number of new project launches, says Fitch Ratings in the agency's Indonesia Property Watch report for 3Q15.

The aggregate leverage of these seven major developers had also worsened to 35.5% by end-3Q15, compared with a marginal net cash position (leverage was -3.6%) at end-2012 during the height of the property boom. Fitch expects sector leverage to remain high in the next 12 months as sales and cash collections will lag construction, especially for developers with more high-rise projects in the pipeline.

Residential property price growth also continued to slow for the eighth consecutive quarter, up 5.5% yoy in 3Q15. Fitch expects prices to remain muted in the next 12 months - given the weak demand, underpinned by weak commodity prices and higher inflation in 2015 that has led to tepid economy growth.

The full report "Indonesia Property Watch - 3Q15" is available at www.fitchratings.com.