Comparison of the property practitioners and consumer preferences on housing prices in the Jakarta metropolitan region

Abstract

Purpose – The purpose of this paper is to compare the different preferences between property practitioners and residential consumers on housing prices in the Jakarta Metropolitan Region. Design/methodology/approach – The Jakarta Metropolitan Region as the largest metropolitan city in Indonesia was selected as the main sample city for this study. This study comprises 134 respondents from property practitioners and 277 respondents from residential consumers. Data were collected from all regions in Jakarta Metropolitan Region and their respective satellite cities. Descriptive analysis, the correlation study, Wilcoxon t-test and principal component analysis were used to compare the findings between each group’s preferences on housing attributes. Findings – The results of this research provide an analysis on the different decisive attributes for each group, disparities on the correlation between attributes in housing consumers and property practitioners and disagreements among each group on the attribute preferences influencing housing prices in the Jakarta Metropolitan Region. Research limitations/implications – In conclusion, the study provides valid and dependable evidence on different consumers and property practitioners attribute preferences for housing products in the Jakarta Metropolitan Region. Originality/value – This research is the first to compare the attribute preferences for housing products between housing consumers and property practitioners in Indonesia. In addition, this study is one of the first to reaffirm preference attributes influencing housing product prices in Indonesia.

Preferences for housing attributes in Saudi Arabia: A comparison between consumers' and property practitioners' views

“…Tan (2012b) emphasise that housing developers should regulate their housing activities to suit households' needs and wants. Rahadi et al (2015a) suggest that practitioners in the property industry have recognised the importance of understanding preference attributes relating to their products. For example, housing developers will have an improved reputation and brand if they can interpret what customers need (Rahadi, 2013).…”

“…This is particularly true with regards to preferences for housing attributes. Rahadi et al (2015a) claim to be one of the first investigations to compare housing consumers' and property practitioners' views with regards to attributes that influence housing prices. In examining the relationship between housing preference factors and price, Rahadi et al (2015a) found some discrepancies between residential consumers' and property practitioners' views.…”

“…Rahadi et al (2015a) claim to be one of the first investigations to compare housing consumers' and property practitioners' views with regards to attributes that influence housing prices. In examining the relationship between housing preference factors and price, Rahadi et al (2015a) found some discrepancies between residential consumers' and property practitioners' views. Overall, the study found housing consumers to be more concerned with the physical quality attributes of housing, while property practitioners were more concerned with location attributes (Rahadi et al, 2015a).…”

“…In examining the relationship between housing preference factors and price, Rahadi et al (2015a) found some discrepancies between residential consumers' and property practitioners' views. Overall, the study found housing consumers to be more concerned with the physical quality attributes of housing, while property practitioners were more concerned with location attributes (Rahadi et al, 2015a). However, two populations placed similar emphasis on the attributes with the highest and lowest mean values, indicating there was also some alignment in their opinions (Rahadi et al, 2015a).…”

“…This research will be the first to do so, contributing theoretically to the identified knowledge gap (Naderi et al, 2012;Rahadi et al, 2015) that exists internationally. Moreover, Rahadi et al (2015a) emphasised that a limitation of their study was that it was limited to housing consumers and property practitioners in only one region (the Jakarta Metropolitan Region) of a country (Indonesia), whereas the present study will gather a broader range of views from several regions across a country (Saudi Arabia). Developing understanding in this regard should assist housing providers in planning and designing their products in line with the preferences consumers in order to create better quality homes and neighbourhoods that are successful in the long term.…”