ESTIMATED CHANGES IN LAND AND PROPERTY PRICESIN TOD AREAS AROUND THE DEVELOPMENT PLAN OF BANDUNG LRT STATION

• Main Author: Prasanti Irwan, Nadya
• Format: Theses
• Language: Indonesia
• Subjects: Perencanaan wilayah
• Online Access: https://digilib.itb.ac.id/gdl/view/81031
• Institution: Institut Teknologi Bandung

The development of urban rail transportation systems and Transit-Oriented Development (TOD) have the potential for value creation due to increasement of urban accessibility and various types of activites agglomeration that affect changes in land and property prices around the transportation nodes area. The increase in land and property values can be beneficial for the community and government, especially in developing LVC (Land Value Capture) scheme which is currently being developed in Indonesia as an alternative scheme in funding transportation infrastructure. Bandung City currently has a plan to build Bandung LRT (Light Rail Transit), but it has not been realized yet due to financial constraints. Research on the impact of urban rail transportation system and TOD development has been widely conducted, but there was not much research related to estimating changes in land and property prices that can occur in the future, especially in Bandung LRT development project. The identification of estimated changes in land and property prices was carried out using pilot case studies, namely the Jakarta MRT (Mass Rapid Transit) and Jabodebek LRT, which are similar urban rail transportation systems that already exist in Indonesia. This research was conducted by identifying several factors that can affect land and property prices using content analysis of previous studies related to hedonic pricing models in similar case studies which were then used in identifying differences model in land and property prices using Propensity Score Matching (PSM) analysis, as well as identifying price models and estimating changes in land and property prices using multiple linear regression analysis. Based on PSM analysis results, areas in Jakarta City that already have an urban rail transportation system have an average land price per sqm and property prices per sqm which are significantly higher than areas in Bandung City that have similar characteristics. Based on multiple linear regression analysis results using the robust model, there are a total of 11 (eleven) variables that can affect land price per sqm and overall property prices on built-up and vacant land, namely distance to the nearest station or TOD, land use, land area, building area, distance to the nearest toll gate, distance to the CBD, distance to the nearest hospital, distance to the nearest elementary school, distance to the nearest senior high school, distance to the nearest amusement or commercial area, and distanceiv to the nearest recreation area/tourist attraction/sports center. The existence of urban rail transportation systems and TOD themselves significantly has a positive influence on the increase in land prices per sqm and overall property prices on both built-up and vacant land. Based on the regression prediction calculation from the obtained hedonic pricing models, there are 94% increase in the average land price per sqm and 65% increase in the average property price of built-up land, as well as 169% increase in the average land price per sqm and 51% increase in the average property prices of vacant land in the TOD areas around the development plan of Bandung LRT Station which can occur up to a span of 4 (four) years after the Bandung LRT officially operates and can be considered in the determination of LVC scheme in the future.