Home Buyers Research Articles

Location, Quality, and Price Drive Home Purchases in Indonesia

This study examines the influence of location, product quality, and price on purchasing decisions at Graha Candi Pratama housing in Indonesia. Despite extensive research on housing purchase decisions, the unique contributions of these factors at Graha Candi Pratama have not been thoroughly explored. A quantitative approach was employed, sampling 96 homeowners via questionnaires, with data analyzed using SPSS 25. Results indicate that favorable location, high product quality, and affordable pricing significantly impact consumer decisions. Developers are advised to consider modern trends, cultural habits, and continually improve design and amenities while maintaining affordable pricing to attract buyers. Highlight: Location Impact: Proximity to amenities and transport influences purchase decisions. Product Quality: High-quality construction and variety increase buyer satisfaction. Price Affordability: Competitive pricing enhances housing project attractiveness. Keywoard: Housing purchase decision, location, product quality, price, consumer behavior

Legal Protection for Homebuyers in Cases of Developer Default on Guarantees Issued Without Prior Notification (A Case Study of Bekasi District Court Decision Number: 239/Pdt.G/2020/PN Bks)

With the progression of time, the demand for housing has significantly increased, motivating various parties to develop businesses in the property sector, particularly in housing. However, in pursuing this business, developers sometimes fail to fulfill their obligations, as illustrated in the Bekasi District Court Decision Number 239/Pdt.G/2020/PN Bks. The purpose of this scientific article is to examine the legal protection available to home buyers against breach of contract by developers and to identify possible courses of action buyers can take to secure ownership rights from non-compliant developers. This article utilizes a normative juridical research method through legislative and case-based approaches. The issues addressed are the legal protections available for home buyers in cases of developer breach of contract and the remedies available to buyers for securing their ownership rights when developers fail to meet contractual obligations. The findings indicate that legal protection for home buyers can be based on the Consumer Protection Law and the Indonesian Civil Code. Buyers have several possible actions, such as demanding that developers fulfill their obligations as per the court ruling, seeking compensation for damages incurred, and reporting the issue to the Ministry of Public Works and Public Housing (PUPR), which has the authority to impose administrative sanctions on developers.

Beyond blueprints: unveiling sustainable housing ambitions – a TAM and EMGB fusion among paraprofessionals in urban construction landscape

PurposeThis study explores the factors influencing the investment intentions of potential home buyers among paraprofessionals in sustainable housing within urban construction. By combining the technology acceptance model (TAM) and the extended model of goal-directed behavior (EMGB), the research seeks to understand how technological perceptions, personal motivations and behavioral intentions intersect to shape these investment decisions.Design/methodology/approachA quantitative, cross-sectional and descriptive research design was employed in this study. The study surveyed 641 paraprofessionals as potential home buyers in various Indian cities using a multi-stage stratified sampling technique. It incorporated variables from the TAM and EMGB, modifying some aspects to include financial self-efficacy, hedonic motivation and anticipated regret, alongside adding location as a new factor to examine its impact. For data analysis, partial least squares structural equation modeling was utilized. The analysis focused on hypothesis testing to examine the relationships between the constructs of interest. Bootstrap t-values and effect sizes were used to assess these relationships’ significance and magnitude.FindingsThe study found that perceived usefulness and ease of use significantly enhance attitudes toward sustainable homes, while subjective norms have a minimal effect on such investments in India, emphasizing personal rather than societal influences. Financial self-efficacy, anticipated regret and hedonic motivation are key drivers, indicating that economic capacity and the pursuit of a satisfying lifestyle are crucial for investment intentions. Additionally, the importance of location is highlighted, with infrastructural aspects notably affecting sustainable housing appeal. These insights reveal unique dynamics in India’s sustainable housing sector, diverging from trends in developed countries.Originality/valueThe study lies in its unique fusion of the TAM and EMGB specifically tailored to the Indian urban construction context. It introduces financial self-efficacy, hedonic motivation and anticipated regret as novel variables within these frameworks, alongside emphasizing the significant role of location in sustainable housing decisions. This approach offers new insights into the psychological and socioeconomic factors driving sustainable housing investments in developing countries.

Impact of Asking Price Signals on House Buyer Behavior: Evidence from Ho Chi Minh City

This study explores how potential homebuyers in Ho Chi Minh City respond to critical market signals, particularly unusually low asking prices and extended listing durations. Using a three-step approach and survey data from 448 recent buyers of self-built homes between June 2017 and May 2018, the research provides new insights into buyer behavior in a rapidly growing but information-constrained housing market. Contrary to common belief, our findings reveal that houses listed at significantly below-market prices do not attract eager buyers but instead trigger skepticism, resulting in lower transaction prices and prolonged time on the market. Additionally, the Cox proportional hazards model highlights the crucial importance of the first 30 days of listing, where the probability of a sale is highest. As time passes, buyer suspicion increases, leading to a declining likelihood of sale and reinforcing the “stigma effect” of extended listing times. These findings challenge traditional pricing strategies and offer valuable implications for sellers and real estate agents navigating dynamic and competitive housing markets.

Like father, Like son? Intergenerational Transmission of Household Housing Preference: Evidence from China

Based on the cross-generational data of the China Family Panel Studies (CFPS) in 2010, 2014, 2018, this paper empirically explores the intergenerational transmission of household housing preference and its underlying mechanism from a perspective of intergenerational transmission. It finds that: (1) There is a distinct intergenerational transmission of housing preference. (2) For offspring under the age of 45, or those who are female, the intergenerational transmission of housing preferences from parents to their children is more pronounced. (3) Fertility intentions exhibit a resource dilution effect on the intergenerational transmission of housing preference. (4) The stronger the belief within a family that a child’s future success depends on the family’s economic status, the more likely it is to negatively influence the child's housing preferences. (5) Parents not only affect their children's consumption preferences regarding housing but also shape their attitudes towards borrowing for home purchases. This paper offers new insights into understanding household housing preference, and provides a foundation for government initiatives aimed at guiding households in rational asset allocation through social mechanisms.

The rights and obligations of consumers, banks and developers in the home purchase agreement through the home ownership loan facility (STUDY PT.PILAR WAHANA SEJATI)

This study aims to (1) Examine and analyze the legal relationship between consumers and developers due to the Home Purchase Agreement. (2) reviewing and analyzing the legal protection of Home consumers due to the obligations of the developer due to the house sale and purchase agreement. The research method used is juridical normative by using conceptual (conceptual approach). Data analysis is done qualitatively by utilizing relevant positive theories and laws. Legal protection of consumers is regulated in law No. 8 of 1999 on consumer protection this law is expected to protect consumers in buying and selling homes through home ownership credit facilities. Based on the rules of law ,then in making the sale and purchase of houses must be made in the form of an authentic deed that is a deed that is made in the form specified by law and made before the competent public officials. Deed of sale and purchase under Article 617 of the Civil Code Kepmenpera number 09/1995 and PP24 / 1997, The Deed of sale and purchase must be signed by the seller and buyer in the presence of PPAT.

Discrimination Against Puerto Ricans in the Puerto Rican Housing Market: Evidence From a Preregistered Audit Experiment

Abstract Do locals discriminate against themselves by favoring foreigners with higher expected purchasing power? Drawing on theories of prejudice, discrimination, and colonialism, I argue that in colonized and post-colonial countries, local home sellers discriminate against local potential homebuyers while favoring foreigners with expected higher purchasing power, anticipating a more profitable transaction. I support this argument with evidence from a preregistered online audit study targeting discriminatory attitudes toward local home buyers. In the study, fictitious home buyers with distinctive language and ethnic names emailed 1,512 home sellers (realtors and homeowners) across all municipalities in Puerto Rico. Home sellers reported more houses available to Americans and invited them to more house showings than Puerto Ricans. My estimates indicate that ethnic discrimination exists in the Puerto Rican housing market. These findings provide new insights into ethnic dynamics in colonized and post-colonial societies and underscore concerns about recent legislation that turned Puerto Rico into a tax haven.

Patterns of supported home purchase in the United Kingdom

Housing markets are an important arena for the intergenerational transmission of (dis)advantage in advanced economies. In recent years, academics and policymakers have argued that homeownership is becoming a ‘family affair’ as home buyers become increasingly reliant on receiving financial and in-kind support from their relatives. This article develops our understanding of supported home purchases in Britain by examining the distribution and residential implications of receiving assistance to buy a home. The results show that support for home purchase is more widespread, varied and multichannelled than is often assumed. Receipt of support is also socially patterned as younger and more economically marginal buyers, as well as those in the tight London housing market, are disproportionately likely to purchase homes with assistance. Finally, although support generally has weak associations with the characteristics of housing purchases, drawing on an inheritance boosts the probability that those entering homeownership buy homes in more advantaged neighbourhoods. Receiving support also reduces the likelihood of heavier mortgage borrowing among moving owner-occupiers.

Analysis Of the Impact of China's Population Age Structure on Residential Commercial Housing Prices

With the intensification of global aging, the impact of changes in population age structure on the real estate market is becoming increasingly significant. This article aims to explore the impact of changes in China's population age structure on the prices of residential commercial housing, to provide a scientific basis for regulating the real estate market. By analyzing data from 30 provinces and cities in China from 2013 to 2022, this article finds that as aging population intensifies and the number of children decreases, both the old-age dependency ratio and the child-age dependency ratio have a negative impact on housing prices. This means that the aging society and the economic pressure of childcare may weaken the demand for home purchases. Household Saving Rate and increase in total population positively drive house prices, while the relationship between per capita income and house prices is not significant. From a regional perspective, the aging population in the eastern region has a significant effect on suppressing housing prices, while the impact is gradually evident in the central region. The western region has a smaller impact and population growth suppresses housing price increases. The study emphasizes the impact of changes in the age structure of the Chinese population on the prices of residential properties and proposes policy recommendations such as improving old-age security and optimizing the housing supply structure to promote the steady development of the real estate market.

Marriage entry, divorce and reconciliation: The unintended consequence of the home purchase restriction policy in China

This study investigates the unintended socioeconomic consequences of housing market regulations, focusing on the home purchase restriction (HPR) policy implemented in cities across China. While the primary aim of the HPR policy is to curb property prices by limiting the number of properties a household can purchase, its broader impact on family formation, particularly marriage and divorce patterns, remains underexplored. Applying Becker’s economic theory of marriage, which views marital decisions as rational choices influenced by socioeconomic factors, this study examines how the HPR policy affects family formation and dissolution across different city tiers and age groups in China. Our analysis reveals several key findings. First, the HPR policy effectively contributed to a decrease in house prices, aligning with its primary objective. However, it also led to delayed marriages among younger age groups, especially in first-tier cities, where housing affordability is a significant concern. Second, the policy inadvertently encouraged strategic divorces, allowing couples to circumvent purchase restrictions and acquire additional properties. This loophole undermines the policy’s effectiveness in reducing housing demand and stabilizing prices. These results highlight the complex interplay between housing market regulations and family demographics, emphasizing the need for policymakers to consider the broader societal impacts of non-family-oriented policies. As China, like many other societies, faces challenges related to the second demographic transition—such as declining marriage and fertility rates—the findings of this study serve as a cautionary tale. Housing policies, while effective in addressing market concerns, can have significant and sometimes counterproductive effects on family stability and formation, potentially exacerbating the demographic trends a society aims to mitigate.

The effect of soaring housing prices on the quality of export products: Evidence from China

AbstractThis paper examines the impact of rising housing prices on the quality of export products. When housing prices increase, the collateral value of firms can rise, easing financial constraints and potentially boosting investment in innovation and product quality. However, higher housing prices can also lead firms to divert investments from their core business operations to the housing sector, where returns are relatively higher. This diversion can negatively affect product quality. We empirically investigate this relationship using Chinese firm‐level data, matched with customs and city‐level data from 2000 to 2013. Our results show that during China's housing boom, rising housing prices significantly reduced the quality of export products. The negative impact of speculative investment in the housing sector outweighed the positive effects of eased credit constraints. Firms with real estate investments and industries with low external financial dependence were more affected by rising housing prices. Additionally, government restrictions on home purchases helped mitigate the negative impact of rising housing prices on export product quality.

Determinants of Intra-City Residential Migration Patterns of Older Adults: A GIS and Decision Tree Analysis of Yancheng City, China

This study investigates the spatial patterns of residential migration among older adults in the city center of Yancheng and the influencing factors using data on the home purchases of individuals aged 65 and older from 2016 to 2018, along with peripheral point of interest (POI) data, analyzed with ArcGIS and a decision tree model. The results indicated that persons aged 60–65 accounted for 42.8% of the total sample and primarily chose to migrate in the early stages of retirement. The intra-city migration of older adults exhibits both centripetal and centrifugal patterns, with a greater tendency toward the city center. House prices, floor levels, and commercial facilities significantly impact their choice of migration destinations. Among these, house prices were the most critical determinant, with the majority of older adults migrating to neighborhoods with lower house prices. This study contributes by integrating residential migration and location choice research and constructing an analytical framework based on facility accessibility. The findings provide insights into the key determinants of location choice for intra-city residential migration among older adults and the construction of livable neighborhoods for them.

The role of speculation on housing price disparities

This paper explores the impact of speculation on disparities in home purchase prices within neighborhoods. Using administrative data on residential real estate transactions in Singapore's private housing market, our analysis reveals that housing unit prices increase over time within a neighborhood in the presence of speculators. However, this pattern remains stable after the implementation of macroprudential policies aimed at deterring speculation. Our mechanism analysis indicates that while speculative sales contribute to the increase in the price of neighboring units over time, speculative purchases have negligible effects. These findings underscore the potential of macroprudential policies in mitigating speculation and promoting housing affordability.

Out‐of‐area home purchase and U.S. internal migration

AbstractThis study demonstrates that out‐of‐area (OOA) property transactions can serve as a proxy for migration. Using micro‐level transaction data, we document that about 35% of migrants make OOA property purchases. The goodness‐of‐fit between migration and OOA purchases is higher for aggregate migration measures and lower for migration flows between disaggregated areas. Furthermore, in most specifications, a one percent increase in OOA purchases is associated with an approximately one percent increase in migration. We characterize the monthly out‐migration from NYC zip codes to surrounding areas after the outbreak of the COVID‐19 pandemic to demonstrate the high temporal and spatial resolution of OOA transaction data.

Cash is King? Understanding Financing Risk in Housing Markets

Abstract In Los Angeles, all-cash home purchases quintupled during the last decade. Compared with an else-equal mortgage offer, a cash offer is associated with 29% shorter time-to-close and a 2-3.9% price discount, indicating a substantial amount of financing risk—the risk to a seller that a transaction may not close on time and may fail to occur again because a mortgage contingency fails. The estimated cash discount aligns well with a canonical model calibrated to the sample market. Our findings reveal that closing risk alone is insufficient to explain the cash discount. Rather, it turns on the possibility that a property back on the market may fail to sell, requiring a substantial risk compensation. The estimated cash discount is smaller during booms and in larger markets, highlighting the inseparability of financial frictions in the mortgage market and search frictions in the housing market.

Investigation of Influential Factors of Housing Price

The fluctuation of housing prices and its influencing factors are important research topics in economics. Under the current background of rapid globalization and urbanization, understanding the driving factors of housing prices is not only an important contribution to academic research but also has important guiding significance for policymakers and individual home buyers. This paper explores the key factors affecting housing prices, focusing on the impact of variables such as living space, land space, housing landscape, housing conditions, housing quality, and housing construction year on housing prices. This study uses multiple regression analysis to analyze the US housing price data set. The results show that living space, housing landscape, housing quality, and housing construction year have statistically significant effects on housing prices at a significance level of 1%. This study provides an effective reference to real estate developers, policymakers, and individual home buyers, which can help them understand market demand more deeply, make decisions that are more in line with market trends, and promote the dynamic and functional development of the real estate market.

Perlindungan Hukum Pembeli Perumahan Subsidi

The study investigates policies and law related to the protection of law for the purchase of subsidized housing. The study focuses on the subsidized housing biding agreement and the legal protection applied to the home buyer facing the developer. Research results show that legal protection for subsidized housing buyers still has weaknesses. Therefore, this study recommends several measures to improve legal protection, such as raising consumer awareness of their right and increasing transparency in biding sales agreements. Overall, this research is expected to help create better policies and law to protect consumer right in the sale of subsidized houses.

The Mortgage‐Cash Premium Puzzle

ABSTRACTAll‐cash homebuyers account for one‐third of U.S. home purchases between 1980 and 2017. We use multiple data sets and research designs to robustly estimate that mortgaged buyers pay an 11% premium over all‐cash buyers to compensate home sellers for mortgage transaction frictions. A dynamic, representative‐seller model implies only a 3% premium, which would suggest an 8% puzzle. Accounting for heterogeneity in selling conditions explains half of this difference, but a puzzle holds in conditions with high transaction risk. An experimental survey of U.S. homeowners replicates these patterns and suggests that belief distortions can explain the puzzle in these high‐risk states.

The Relationship of the 4P Model to Purchasing Decisions: Evidence on Residential Property

This paper explores the application of the 4P model (product, price, place, promotion) in analyzing the factors that influence house purchasing decisions in the Anging Mammiri Residence housing complex, Makassar City. Through quantitative research with a descriptive approach and collecting primary data through questionnaires, validity and reliability tests were carried out on these variables to ensure the robustness of the variables and the formation of a linear relationship between the variables. The population in this research is the number of consumers who have bought a house at Anging Mammiri Residence, Makassar City from 2016 to 2022. In this research, the sample was taken using the Census Sampling technique where the researcher took the entire sample or part of that number. Questionnaires were distributed to all home buyers totaling 131 respondents. However, at the data processing stage, 61 respondents did not return the questionnaire. So, the number of samples used was 70 respondents. The research results found that product, price, location and promotion had a significant and positive influence on the decision to purchase a house at Anging Mammiri Residence, Makassar City. This research contributes to understanding the elements of the marketing mix and analyzes the 4P model in shaping consumer decisions and its implications for the property market. Apart from that, it contributes to the government as a source of literature in formulating appropriate policies and in building infrastructure and regional development such as roads and other public facilities.

Location and Brand Image Outshine Price in Homebuyer Decisions in Indonesia

General Background: The increasing population in Medan has led to a rising demand for housing, prompting competition among companies to provide secure and comfortable upper-middle-class residences. Specific Background: Citraland Helvetia serves as a case study to understand the dominant factors influencing consumer decisions in purchasing homes. This study specifically investigates whether price, location, promotion, brand image, and facilities significantly impact the purchase decisions at Citraland Helvetia. Knowledge Gap: Previous research has not conclusively identified which factors are most influential during the product launch phase for residential properties in this region. Aims: This study aims to identify the dominant factors affecting consumer purchasing decisions during the product launch of Citraland Helvetia, focusing on location, brand image, and price. Results: The study found that location and brand image are the two most influential factors in the decision-making process, while price has a significant impact but is not as dominant. Promotion and facilities also positively influence purchasing decisions. Novelty: The research provides empirical evidence highlighting the critical role of location and brand image over price during the initial launch phase, which contrasts with the common perception that price is the primary determinant. Implications: These findings suggest that developers should prioritize strategic location selection and strong brand image development to attract buyers. Enhancing these elements can lead to better consumer satisfaction and potentially higher investment returns. The study's insights can inform future urban development and marketing strategies in the housing sector, particularly in emerging urban areas like Medan. Highlights: Dominant Factors: Location and brand image drive home purchase decisions. Price Impact: Less significant during initial product launch phase. Strategic Focus: Prioritize location and brand image for buyer attraction. Keywords: Housing demand, Medan, Consumer decision, Location, Brand image