Real estate business can be defined as business property of a land and any permanent things or buildings that are attached to the land. Real estate includes large plots of land that are still in the program to be used as residential buildings, schools, buildings, and so on. In Indonesia, in the years of 1974, the first time the government officially regulated real estate as an industry. Based on the increasingly intense development of the country, the real estate industry has become a very influential driver for the country.
Various regions and cities in Indonesia are developing land that has not been used optimally so that it can be managed better as real estate, property and other needs fulfillment businesses. In the future, real estate is expected to continue to gain a prime position in efforts to improve the economy. This is because real estate can adjust to the demands of the global community and adjust to the times.
The belief that Indonesia’s real estate business will improve the economy was broken because the coming of COVID Pandemic. The pandemic that pushed everyone to never leave home nor gather with each other made housing, schools, shops buildings, even some tourism objects need to be locked down. This locked down effect the demands of real estate in Indonesia. People prefer to allocate the budget for holiday to buy every day essentials. Real estate weren’t the top demands of that time. The low interest of real estate made business goes bankrupt.
However, nowadays the real estate market is currently facing the transition from the COVID pandemic to becoming endemic. The changes in conditions change the characteristics demands of real estate housing business that consumers are want for. According to Rumah.com Country Manager, Marine Novita, conveyed that it is important to change the business to adjust the property quality in accordance the consumers wants. In addition, Bank Indonesia recently extended the Zero Percent Down Payment of incentive for KPR (House ownership credit) so this opportunity needs to be utilized fully for the market needs. Marine also said in her official statement, Thursday (27/10/2022) that several important aspects of home seeker’s concern must be noted for attention by developers.
One of the home seeker’s needs that changes is to get a house with much better hygiene. Before the pandemic, peoples tend to search cheaper housing that has decent hygiene facility. Transitioning to post COVID, people are willing to pay more to get a house with higher quality of environment and health features. According the results of the survey ‘Rumah.com Consumer Sentiment Study H2 2022’, there are as many as 83 percent respondents that search higher quality of housing’s health facility.
Climate change after post COVID is also a concern for consumers in choosing the best housing. As many as 97 percent of consumers will buy housing that is safe from the impacts of climate change, including floods, earthquakes, landslides, fires, and others. Another important thing that consumers see is properties with a sustainable living concept. The survey noted that 95 percent of consumers want properties designed to save electricity. In this case it includes important features in housing, namely the use of minimal and cost-effective air conditioning (AC) and lights.
Marine explained that property consumers consider several important property features after a transition occurs when living with Covid-19 as endemic. There are at least two main features in choosing a property, namely proximity to public transportation and proximity to green areas. Marine also explained that 38 percent of respondents stated that the location of the housing which allows people travel every day without the need to use a private vehicle is demanded. Marine said that there is 56 percent of respondents that stated another property feature that is important for the respondents is a housing that has an area for children to play and study. The location of the housing also must be close to food and beverage outlets and shopping centers as stated by 53 percent respondents. Less crowded housing is also the concern when searching housing by 46 percent respondents.
Furthermore, infrastructure remains an important consideration for respondents when choosing a location for a house. The survey results show that 4 out of 5 respondents will consider future infrastructure when making residential buying decisions. The future infrastructure that is considered by respondents is the new toll road stated by 46 percent of respondents, city buses by 34 percent of respondents, Jabodetabek LRT (Integrated Railroad) by 32 percent of respondents, commuter trains by 32 percent of respondents and the Jakarta-Bandung Fast Train by 19 percent of respondents. Marine conveyed that one of the main considerations when buying housing is still the availability of infrastructure and public transportation. The Government’s incessant development of infrastructure and public transportation needs to be followed by property developers to start building new housing in the vicinity so as to create a new economic center.
By: NURUL WIDYA TANAYA
Write and Win: Participate in Creative writing Contest & International Essay Contest and win fabulous prizes.
