SMART CITY Universitas Indonesia is concerned with four major research topics: 1) Energy & Environment, 2) Infrastructure, 3) Information & Communications Technology and Mobility, and 4) Quality of Life. As a research center that encourages to conduct high quality research with cross-disciplinary perspectives, it does not limit its research activities.
During the outbreak of the COVID-19 pandemic, the way people live changes significantly. This includes how housing is prefered in this period. Researchers at SMART CITY Universitas Indonesia: Ahmad Gamal, Lailatul Rohmah, Mahdaniar Maulidini Muhyi initiated and conducted a research investigating the impact of the pandemic on the housing preference entitled Housing preference shifting during COVID-19 pandemic in Indonesia. This study specifically aims to estimate the shift in residential property buyer preferences.
The findings indicate that the COVID-19 pandemic has a significant impact on both the housing industry and people housing preference in Indonesia, as evidenced by a decline in the market for high-rise and dense multi-unit residential buildings. The buyers have shown a preference for landed houses over multi-unit residential buildings during the pandemic. According to a survey conducted of more than over 380 real-estate customers in 2020, at least 35.97% of potential residential property buyers have changed their preferences due to the pandemic. In detail, there has been a 24% increase in preference for landed houses over apartments due to fear of meeting people. However, changing trends and potential investments are also factors in this shift. The fear of economic recession is less significant than the fear of meeting people, but purchasing ability also remains a prominent consideration. Moreover, it is also found that the buyers are seeking control over their living environments and willing to compromise on additional facilities for budgetary reasons. Therefore, developers and stakeholders must anticipate the risk of stalled or unfinished apartment projects and focus on residents’ control for personal safety. This study provides valuable empirical information for policymakers and the public on real estate market trends and housing preferences.
The article has been submitted and recently accepted and published on the Journal of Urban Management in 2023.
The citation :
Gamal, A., Rohmah, L., Muhyi, M.M.. (2023). Housing preference shifting during COVID-19 pandemic in Indonesia. Journal of Urban Management. DOI: https://doi.org/10.1016/j.jum.2023.05.002
COVID-19 pandemic, Housing preferences, Residential property