POTENTIAL VALUE CAPTURE ON PROPERTIES IN THE TRANS SEMARANG BRT CORRIDOR

• Main Author: Jauhari, Kifayah
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/61986
• Institution: Institut Teknologi Bandung

Limited infrastructure funding encourages local governments to seek alternative funding sources. Value capture is an alternative scheme to capture the economic benefits of public services and infrastructure, such as Bus Rapid Transit, a costeffective public transport services alternative. However, the impermanence of the BRT system, especially when compared to rail-based public transport, is a factor that has led some researchers to question its accessibility benefits, especially in promoting properties value-added. This study presents an investigation of BRT service effect on property values uplift in BRT corridor, as a basis for assessing the potential value capture from BRT investments. Trans Semarang BRT is the case study in this research, where property transaction prices in 141 sub-districts (out of 177 sub-districts in Semarang City) along Trans Semarang Corridor 1-8 in the period 2012-2017 are used to identify the value added of properties generated by Trans Semarang services. Sub-districts along Corridor 1-6 Trans Semarang are designated as treatment units whose property value changes are observed, and areas along Corridor 7 and Corridor 8 Trans Semarang (opened in 2018 and 2020) are the comparison or control units in the analysis. The Difference-inDifferences analysis technique was used in this study to identify the average treatment effect of BRT services on property values, by controlling the unobserved factors that may vary over time and the characteristics of treatment units and comparison unit that affect the property values, even before establishment of BRT services, so that the identified treatment effects do reflect the effects obtained from the opening or addition of the Trans Semarang BRT service corridor. Structural attributes, location attributes, socioeconomic attributes, and physical environmental attributes of property locations that are expected to affect the transaction value of the property are used as control variables in the DiD analysis. This study found the spatial and temporal heterogeneity of the effects of providing BRT services between sub-district along the Trans Semarang Corridor for the period 2012- 2017. In aggregate, there is no evidence of an increasing effect on property values in the study area in the period 2012-2017. The added value of providing BRT Transiv Semarang services is found in 6 sub-districts in the urban fringe zone of Semarang City that received BRT services at the opening of Corridor 4 Trans Semarang, where property values are estimated to be 30.75% higher on average in 2012-2017 than it would have been if there was no Trans Semarang BRT service. From a temporal perspective, the impact of property value appreciation is found 1-2 years after the opening of Corridor 4 of Trans Semarang. The study also finds that dominance nonsignificant and negative effect on property values in the provision of BRT Trans Semarang services. The highest rate of negative effect on property value appreciation is found in the periphery zone of the study area, and most of the non-significant effect was found in the central core zone of the study area. The results of the study provide evidence of the value capture potential from increased property values generated by public transport investments, as an alternative to financing public transport. Considering the results in this study, the implementation of the Land Value Capture scheme needs to pay attention to the spatial and temporal distribution of the BRT services effect on property value appreciation, especially for the City of Semarang as the object of this study.