Feasibility Research on Low-Rise Apartment and Landed Housing Development within Smart Living Areas in Indonesia’s Secondary City (A Case Research at PT.XYZ)

Abstract

Indonesia's growing urbanization, population growth, and changing work behaviors have increased the demand for diverse housing options. PT XYZ, established in 2021, plans to meet this demand by developing low-rise apartments and landed housing in smart residential areas in secondary cities. This research aims to assess the feasibility of this project by analyzing market demand, financial performance, and regulatory factors. Using financial models such as Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), as well as sensitivity analysis and Monte Carlo simulation, this research evaluates the financial viability of the project. The results show strong profit potential, with a positive NPV and IRR of 57.41%, achieving a payback within four years. The project not only fulfills the housing needs of Millennials and Gen Z, but also aligns with government initiatives to promote home ownership. The implications of this research include improving housing accessibility for young, dynamic demographic groups, such as Millennials and Gen Z, as well as strengthening developer strategies in the face of changing market challenges.