DETERMINING FACTORS INFLUENCING THE PRICE OF HOUSING FOR FIRST TIME HOME BUYER INDONESIA

• Main Author: Sola Gratia, Dame
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53091
• Institution: Institut Teknologi Bandung

The building refers to houses, apartments, malls, shops or office building. Increasing demand in property stimulated by the people who need housing. All due to high population growth in Indonesia that makes housing on the big cities in Indonesia is more important as basic facility rather than to be an investment. As a shelter, housing must be accommodating with a comfort and harmonious place to a family. However, it isn’t an easy thing to choose a house because it does involve a big commitment. Other than that housing also involves the highest cost in expenditure. Therefore, home buyers need to put a lot of concern into their choice, especially for the first-time home buyer as they did not have any experience in buying a house before. First time home buyer, which represent professional that just started their first job, found it difficult to acquire a house inside the city since the house price is already high. This statement underlines the fact that although the purchasing power of first-time home buyer might be low to own a property, they actually have significant potentials. As the land is limited and the price also getting higher there’s a difficulty to generate cashflow and determine an opening price. With a limited budget, first time home buyer needs to consider the available option that match with their needs. This research tries to analyze the relationship between housing prices, first time home buyer preferences, and external factors arising that influence the price. The approach used is by analyzing, making synthesis, and giving a critical analysis from twenty papers related to housing preferences. The objective of this research is to find the buyer preferences factors that influencing price for first time home buyer. The research revealed that economic conditions, quality, location, physical attributes, facilities, design and aesthetic aspects are the factors that influencing the price of housing for first time home buyer. After that, the factors spelled out into a questionnaire and the data is analyzed using regression to find out the weighted number of each variable. The scope of this research is limited to the analysis of factors influencing price on first time home buyer in Indonesia including Jabodetabek, Bandung, Surabaya, Denpasar, Medan, Pekanbaru, Balikpapan, and Makassar as representative of big cities in Indonesia. In this research, a model for determining factors that influence housing prices for the first time in Indonesia has been developed and applied in several regions in Indonesia. This conceptual model can be used and extended to other cities in any potential investigations. It is also possible to elaborate further on the development options for the housing sector, especially for first-time home buyers. The findings of this study will eventually enrich the database of real estate developers, buyers and stakeholders, as there are limited studies of first-time home buyers in Indonesia.