Site Selection Factors of Apartment on Developer Perspective Nilam Atsirina Krisnaputri 1 1 Student, Department of Architecture – Real Estate Planning Institut Teknologi Sepuluh Nopember (ITS) Surabaya, Indonesia 2 Ir. Purwanita Setijanti, M.Sc., Ph. D. 3 Prof. Ir. Happy Ratna S, M.Sc., Ph. D. 2,3 Supervisor, Department of Architecture Institut Teknologi Sepuluh Nopember (ITS) Surabaya, Indonesia Abstract—The demand of residence availability in Surabaya increases due to continuous escalation of population and economic growth. However, because of limited site in Surabaya, government has opened large opportunities for apartment developments. It triggers the developers build apartment in many location. While, the distribution of apartment establishment needs to be concerned in order to avoid accumulation in certain site that can generate more environment problems. As a base of city planning and real estate development, site selection needs to be known by the developers who play a major role in apartment development in Surabaya. This research is aim to find the answer what are the most important factors for developers in decision making regarding to apartment site selection. To reach the goal, this research is using descriptive statistical analysis. Then, the result of this research, there are nine variables that important to be considered in apartment site selection by developer perspective, such as landownership, zoning, strategic and planning corporation, supply and demand, public utilities, land price, document planning, township, and corporate ability. Keywords—Apartment; Developer; Location; Site Selection I. INTRODUCTION Trades and industries are leading sector in Surabaya economic growth. Almost 50% of economic growth influenced by trading sector and 23% influenced by industry sector. It will require the availability of housing to live or settle for local resident or immigrants who work in the city. Housing is a primary need of human, not only seen as a means of living, but the process of living human beings in order to create a way of life. Moreover, availability of housing is also influenced by the increasing population which has reached 3,125,576 people. To accommodate those numbers it takes about 694.572 housing units (with the assumption 1 house = 1 family = 4.5 inhabitants). Based on Surabaya document planning in 2013, because of limited land in Surabaya, it is only accommodate about 544,304 housing units. Besides due to population growth Surabaya rapid and the urban activities are varied, its land became saturation and the changing of built-up area such as residential, commercial and industrial land uses [1]. It may cause the city growing began to move away from the city center to suburb. Limited land in the middle of an urban area is also because of highly price increasing and competition [2]. To overcome the limited amount of land, the government comply the availability of housing through the vertical housing like apartment. In Surabaya, apartment is one of alternative to control and streamline the space. Then one of the best solutions to overcome limited land and high land price problems is perform to build terraced houses or apartment [3]. Although Surabaya has been no specific regulation of land designated apartment, government support apartment development. Besides that, consumer behavior can effect apartment development. The economic growth is pretty good to increase number of middle-upper class society, so it is possible to influence the need of good housing for them. Apartment is not only for businessmen or entrepreneurs to live but also nowadays living in apartment is trend of today’s lifestyle which is central to modern society in cities [4]. Then, living in an apartment is also an option for students (younger age groups), young families and older families. Based on Colliers Research Report Apartment 2014, the rate of absorption of apartment units reached 82.8%, this is evident in recent years, especially in middle class apartment, and the number of potential demand will continue growing in line with population growth increasing to 1.2% annually. Easiness payment and terms purchasing apartments is also a major factor that causes increased absorption level apartment (take- up rates). It causing developers have a high interest to build apartment in Surabaya. Supply apartment units has now reached 18.153 units, up to 10,8% from previous year [5]. In the end, those phenomenon has encouraged apartment developed grow randomly. Apartments are not only growing in downtown of Surabaya, but also growing and spread in suburb. Whereas, location where is apartment developed is very important in order to avoid a buildup areas which could effect in unfair price competition, failure in apartment sale, social and environmental problems. Location in land development activity shall be considered and chosen appropriately, so it could be encourage urban activity more productive and efficiently [6]. To avoid the conflicts between activities as an effect of apartment development, it necessary to allocation those activities according to its space characteristics and capacity in long term [7]. In urban planning, land use allocation closely related to determine a location, and create the form of land use apartment. The success and value of a housing project is determined by the location [8]. The accuracy of apartment site selection will affect successful sales, which it may could affect the economic growth [9]. In these case, it necessary to have a International Journal of Engineering Research & Technology (IJERT) ISSN: 2278-0181 www.ijert.org IJERTV5IS010072 (This work is licensed under a Creative Commons Attribution 4.0 International License.) Vol. 5 Issue 01, January-2016 76