FEASIBILITY STUDY ON LOW-RISE APARTMENT AND LANDED HOUSING DEVELOPMENT WITHIN SMART LIVING AREAS IN INDONESIA'S SECONDARY CITY (A CASE STUDY AT PT.XYZ)

• Main Author: Artha Wijaya S, Jessyca
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85813
• Institution: Institut Teknologi Bandung

Indonesia’s growing demand for housing, driven by urbanization and shifting work behaviors, has prompted PT. XYZ, established in 2021, to expand into the residential sector. The company plans to develop low-rise apartments and landed housing in smart living areas across secondary cities, catering to Millennials, Gen Z, and the middle-upper generation. Low-rise apartments appeal to younger buyers with modern features, while landed housing targets mature buyers seeking spacious environments. This feasibility study analyzes the project’s market potential, financial viability, and regulatory environment through PESTEL, VRIO, Porter’s Five Forces, SWOT, and Risk Management frameworks. Financial models, including NPV, IRR, PBP, and Monte Carlo simulations, are used to assess risks and returns, with global references enhancing the analysis. Out of 18 cities RPPI analysed by Bank Indonesia, 16 are classified as secondary cities. Semarang is selected as the representative secondary city due to its balanced market growth, evident in the steady rise of its Residential Property Price Index (RPPI) across different housing segments. Infrastructure projects, such as the Kendal Industrial Park, with room for future development and consistent demand across various housing types, making it ideal for understanding Indonesia’s secondary cities. PT. XYZ’s strategy focuses on partnerships, cost control, developing new housing types, and creating smart living environments. The project not only promises substantial returns but also contributes to the development of sustainable, smart living communities in the country’s secondary cities, catering to both the younger generation seeking flexibility and the mature generation desiring a more traditional living environment. This research can also serve as a valuable reference for future studies on Indonesia's secondary city market, offering insights into real estate development strategies in similar urban contexts.