Factors influencing the price of housing in Indonesia

Abstract

Purpose – This study aims to address the factors or attributes that would influence the price of residential products in Jakarta Metropolitan Region. Design/methodology/approach – In total, 202 respondents from all across Jakarta Metropolitan Region participated in the questionnaire for this study. Demographic questions are categorized into age, gender and preferences for real estate locations. The questionnaire was made based on the author’s previous studies. Of the total respondents, 127 were males and 75 were females with age ranging from 18 to 56 years old. For data analysis, the authors utilized factor analysis, Cronbach’ α test and analysis of correlation to reach the conclusion of this study. Findings – The findings suggested that from the initial three factors groups, there are five new groups that emerge as influencing factors for housing prices. Cronbach’ α score were verified (α = 0.906). Correlation study result suggested that the initial three factors groups produce a significant correlation between each of them, except for the factor of “overall location” and “located near family.” After factor analysis, the research results show that there are two new additional groups of factors that emerge as influences to housing prices. There are significant scores of differences between gender and real estate location preference toward the groups of factors. Research limitations/implications – This study shows how physical qualities, concept and location factors influence the housing price perception of their consumers. The result shows to be relatively reliable and valid. Originality/value – The study is the first to analyze the relationship between the factors for preferences on residential products and housing price in Indonesia. This paper is also intended to be the first to pioneer the study on factors of preferences on residential products in Indonesia. The findings will be useful to develop pricing models for housing product in Indonesia.

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

“…Research on housing preferences has been developing over the last few decades (Rahadi et al, 2015b) where researchers have sought to investigate the topic from different theoretical perspectives and using various methodologies (Coolen & Hoesktra, 2001). For example, researchers have focused on examining consumer preferences for particular housing attributes/characteristics (Opoku & Abdul-Muhmin, 2010) and satisfaction with current housing situation (Djebarni & Abed, 2000;Tan, 2012b).…”

“…For example, researchers have focused on examining consumer preferences for particular housing attributes/characteristics (Opoku & Abdul-Muhmin, 2010) and satisfaction with current housing situation (Djebarni & Abed, 2000;Tan, 2012b). Others have investigated issues such as the role of demographics, socioeconomics and values in influencing housing preference (Coolen & Hoesktra, 2001;Rossi & Weber, 1996) and the relationship between housing preferences and house prices (Rahadi et al, 2015b). Studies of housing preferences can also be divided into studies on stated preferences and those on revealed preferences (Coolen and Hoekstra, 2001).…”

“…Indonesia (Rahadi et al, 2015b) Location attributes were more important than housing attributes (such as housing design and quality).…”

“…This echoes other research conducted in Chile (Greene & Ortuzar, 2002) and Jordan (Al-Momani, 2003) that identified building materials used for the exterior as one of the most important variables for housing consumers. Building quality was also found to be important to consumers in Indonesia (Rahadi et al, 2015b). Chia et al (2016) suggest that house features such as construction quality can have a significant relationship with house purchase intention, and that this could be due to the fact that it is tangible and easy for consumers to evaluate upon buying a house.…”

Modeling House Price Prediction using Regression Analysis and Particle Swarm Optimization Case Study : Malang, East Java, Indonesia

“…In his research Rahadi, et al [14] divide these factors into three main groups, there are physical condition, concept and location. Physical conditions are properties possessed by a house that www.ijacsa.thesai.org can be observed by human senses, including the size of the house, the number of bedrooms, the availability of kitchen and garage, the availability of the garden, the area of land and buildings, and the age of the house [15], while the concept is an idea offered by developers who can attract potential buyers, for example, the concept of a minimalist home, healthy and green environment, and elite environment.…”