Sensitivity Analysis of Financial Feasibility: Westown View La Chiva Tower Apartment in Surabaya

Masayu, Princessa Auditorina (2024) Sensitivity Analysis of Financial Feasibility: Westown View La Chiva Tower Apartment in Surabaya. Other thesis, Institut Teknologi Sepuluh Nopember.

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Abstract

Surabaya is the second largest city in Indonesia with a population of 3 million and an area of 335 km2 in 2023. The large population and limited land for residence mean that vertical buildings such as apartments are the best property investment candidates. Westown View Apartments seize this opportunity to accommodate people's needs for a comfortable, safe, and strategically located residence developed by PT PP Properti Tbk.
The condition of the Surabaya property market as of Semester II-2023 regarding the selling price of apartments in Surabaya in 2023 increased 0.8 percent to 22.33 million per m2 compared to the previous year. In 2024, price growth and demand for vertical housing in Surabaya will slow down due to the political year with the presidential election 2024. Apartment sales this year will remain stagnant even though the 100% DTP VAT policy continues to apply until June 2024. With an increase in apartment selling prices in 2023 and a slowdown in 2024, price growth and demand for vertical housing may impact the acceptance of Westown View Apartments. Therefore, a financial feasibility analysis and sensitivity analysis of the investment acceptance of the Westown View Tower La Chiva Apartment is needed to ensure that the construction of the apartment is financially feasible and has a probability of being accepted.
This financial feasibility analysis was carried out using capital budgeting criteria such as the Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP) parameters. The steps in carrying out the analysis are estimating investment costs, revenue, and expenditure to create cash flow during the project investment period, then carrying out sensitivity analysis. The results of the financial feasibility analysis of the Westown View Tower La Chiva Apartment project with a MARR of 6.58% showed an NPV of IDR 231,715,997,657, an IRR of 22.94%, and a PP of 5 years. Sensitivity analysis was carried out on the variables of investment costs and unit sales prices. From the sensitivity analysis carried out, it was found that the most sensitive variable was a decrease in the unit sale price with an increased limit of 31.76% or IDR 816,653,298,746.

Item Type:	Thesis (Other)
Uncontrolled Keywords:	Apartment, Financial, Investment, Sensitivity Analysis
Subjects:	T Technology > TH Building construction > TH438 Construction industry--Management. Project management.
Divisions:	Faculty of Civil Engineering and Planning > Civil Engineering > 22201-(S1) Undergraduate Thesis
Depositing User:	Princessa Auditorina Masayu
Date Deposited:	02 Aug 2024 06:56
Last Modified:	02 Aug 2024 06:56
URI:	http://repository.its.ac.id/id/eprint/110428

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