Study of End-User Willingness to Pay for Sustainable House in Gresik Regency
DOI:
https://doi.org/10.32832/astonjadro.v15i3.21868Keywords:
willingness to pay, sustainable house, residential, market analysis, property.Abstract
Gresik is a preferred residential location due to available land and affordable prices, thus demand for land-housing in Gresik may increase yearly. This study aims to determine the willingness-to-pay (WTP) of end-users for sustainable residential buildings in Gresik, using a statistical approach to obtain a comprehensive picture of the property market situation. Both of qualitative and quantitative approaches used to gain information and data collection through questionnaires. The results revealed that social, environmental, infrastructure, technological, and governmental variables have a significant positive effect on willingness to pay, while the economic variable showed no significant influence. This indicates that while affordability remains a practical concern, the decision to invest in sustainable housing is more strongly driven by non-economic factors related to comfort, quality, and long-term value. Social aspects, such as safety, community engagement, and inclusivity, play a major role in shaping consumer preferences, reflecting the importance of social cohesion in sustainable living environments.
References
H. E. Ardiansyah and D. Rahmawati, “Efektivitas Penyediaan Perumahan oleh Perumnas dalam Menangani Masalah Housing Backlog di Kabupaten Gresik,” J. Tek. ITS, vol. 10, no. 1, pp. C1–C6, 2021.
J. Węgrzyn and K. Kania, “Heterogeneous preferences for sustainable housing: evidence from Poland,” J. Hous. Built Environ., vol. 39, no. 2, pp. 749–767, 2024, doi: 10.1007/s10901-023-10101-6.
P. Yandri, D. S. Priyarsono, A. Fauzi, and A. H. Dharmawan, “Formulating and Validating Sustainable Residential Area Indicators in Suburban Metropolitan Jakarta,” Int. Rev. Spat. Plan. Sustain. Dev., vol. 9, no. 3, pp. 82–102, 2021, doi: 10.14246/irspsd.9.3_82.
V. W. Pranoto and A. Njo, “Effect of Residential Preferences on the Willingness to Pay for Residential with Near Toll Road Gate in Surabaya,” Dimens. Utama Tek. Sipil, vol. 7, no. 1, pp. 33–46, 2020, doi: 10.9744/duts.7.1.33-46.
S. Mishi and R. Mwanyepedza, “Willingness to accept and willingness to pay for residential properties: a hedonic model approach,” Emerald Open Res., vol. 1, no. 5, Jan. 2023, doi: 10.1108/EOR-05-2023-0012.
S. Mandell and M. Wilhelmsson, “Willingness to Pay for Sustainable Housing,” Swedish Natl. Road Transp. Res. Inst. (VTI), Work. Pap., vol. 20, Jan. 2010, doi: 10.1080/10835547.2011.12092034.
A. Zalejska-Jonsson, S. J. Wilkinson, and R. Wahlund, “Willingness to pay for green infrastructure in residential development-a consumer perspective,” Atmosphere (Basel)., vol. 11, no. 2, pp. 1–20, 2020, doi: 10.3390/atmos11020152.
A. W. Hapsariniaty, B. D. Sidi, and A. Nurdini, “Comparative Analysis of Choosing to Live in Gated Communities: A Case Study of Bandung Metropolitan Area,” Procedia - Soc. Behav. Sci., vol. 101, pp. 394–403, 2013, doi: 10.1016/j.sbspro.2013.07.213.
J. Qusen Zumaya and J. Baqir Motlak, “Sustainable Housing Indicators and Improving the Quality of Life: The Case of Two Residential Areas in Baghdad City,” IOP Conf. Ser. Earth Environ. Sci., vol. 754, no. 1, 2021, doi: 10.1088/1755-1315/754/1/012002.
E. Mulliner, N. Malys, and V. Maliene, “Comparative analysis of MCDM methods for the assessment of sustainable housing affordability,” Omega (United Kingdom), vol. 59, pp. 146–156, 2016, doi: 10.1016/j.omega.2015.05.013.
L. H. Le, A. D. Ta, and H. Q. Dang, “Building up a system of indicators to measure social housing quality in Vietnam,” Procedia Eng., vol. 142, pp. 116–123, 2016, doi: 10.1016/j.proeng.2016.02.021.
H. N. Abushaqra and F. A. Al Khalifa, “Assessing Social Sustainability Indicators in New Housing Development: Case of New East Al Hidd Bahrain,” IET Conf. Proc., vol. 2023, no. 44, pp. 288–293, 2023, doi: 10.1049/icp.2024.0940.
E. Saptutyningsih and Nursetiawan, “Willingness to pay for flood risk mitigation among residents living near river’s confluence in Yogyakarta, Indonesia,” IOP Conf. Ser. Earth Environ. Sci., vol. 1314, no. 1, 2024, doi: 10.1088/1755-1315/1314/1/012061.
A. Renald, P. Tjiptoherijanto, E. Suganda, and R. D. Djakapermana, “Toward Resilient and Sustainable City Adaptation Model for Flood Disaster Prone City: Case Study of Jakarta Capital Region,” Procedia - Soc. Behav. Sci., vol. 227, no. November 2015, pp. 334–340, 2016, doi: 10.1016/j.sbspro.2016.06.079.
L. Pérez-Sánchez, R. Velasco-Fernández, and M. Giampietro, “Factors and actions for the sustainability of the residential sector. The nexus of energy, materials, space, and time use,” Renew. Sustain. Energy Rev., vol. 161, no. June, p. 112388, 2022, doi: 10.1016/j.rser.2022.112388.
T. Holler and A. Serra, “A vision of suburban sustainability: The Long Island Radically Rezoned project,” Metrop. Sustain. Underst. Improv. Urban Environ., pp. 697–720, 2012, doi: 10.1533/9780857096463.6.697.
W. Rid, J. Lammers, and S. Zimmermann, “Analysing sustainability certification systems in the German housing sector from a theory of social institutions,” Ecol. Indic., vol. 76, pp. 97–110, 2017, doi: 10.1016/j.ecolind.2016.12.022.
R. F. Aziz, “Ranking of delay factors in construction projects after Egyptian revolution,” Alexandria Eng. J., vol. 52, no. 3, pp. 387–406, 2013, doi: 10.1016/j.aej.2013.03.002.
V. W. Y. Tam and S. X. Zeng, “Sustainable Performance Indicators for Australian Residential Buildings,” J. Leg. Aff. Disput. Resolut. Eng. Constr., vol. 5, no. 4, pp. 168–179, 2013, doi: 10.1061/(asce)la.1943-4170.0000123.
C. Turcu, “Re-thinking sustainability indicators: local perspectives of urban sustainability,” J. Environ. Plan. Manag., vol. 56, no. 5, pp. 695–719, 2013, [Online]. Available: http://dx.doi.org/10.1080/09640568.2012.698984
Z. S. Shama and J. B. Motlak, “Indicators for Sustainable housing,” IOP Conf. Ser. Mater. Sci. Eng., vol. 518, no. 2, 2019, doi: 10.1088/1757-899X/518/2/022009.
M. A. Adabre and A. P. C. Chan, “Critical success factors (CSFs) for sustainable affordable housing,” Build. Environ., vol. 156, no. February, pp. 203–214, 2019, doi: 10.1016/j.buildenv.2019.04.030.
J. F. Hair, B. J. Babin, W. C. Black, and R. E. Anderson, Multivariate Data Analysis. Cengage, 2019. [Online]. Available: https://books.google.co.id/books?id=0R9ZswEACAAJ
A. G. Prafitasiwi, M. Rochim, and A. A. Permadi, “PENGARUH KOMUNIKASI STAKEHOLDER TERHADAP KEBERHASILAN PROYEK BANGUNAN PABRIK DI GRESIK,” in Prosiding Seminar Nasional Teknik Sipil, 2024, vol. 2, no. 1, pp. 384–394.
M. Mironiuc, E. Ionașcu, M. C. Huian, and A. Țaran, “Reflecting the sustainability dimensions on the residential real estate prices,” Sustain., vol. 13, no. 5, pp. 1–28, 2021, doi: 10.3390/su13052963.
V. S. Pineda and J. Corburn, “Disability, urban health equity, and the coronavirus pandemic: promoting cities for all,” J. Urban Heal., vol. 97, no. 3, pp. 336–341, 2020.
R. A. S. Mateus, T. Oliveira, and C. Neves, “Sustainable technology: Antecedents and outcomes of households’ adoption,” Energy Build., vol. 284, p. 112846, 2023, doi: 10.1016/j.enbuild.2023.112846.
E. Nketiah, H. Song, G. Adu-Gyamfi, B. Obuobi, M. Adjei, and D. Cudjoe, “Does government involvement and awareness of benefit affect Ghanaian’s willingness to pay for renewable green electricity?,” Renew. Energy, vol. 197, pp. 683–694, 2022, doi: https://doi.org/10.1016/j.renene.2022.07.139.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 ASTONJADRO
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Paper submitted to ASTONJADRO is the sole property of the Astonjadro Journal. Unless the author withdraws the paper because he does not want to be published in this journal. The publication rights are in the journal Astonjadro.ASTONJADRO
LICENSE
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://ejournal.uika-bogor.ac.id/index.php/ASTONJADRO
