Land Value Capture Modeling in Commercial and Office Areas using a Big Data Approach

Abstract

Infrastructure development in Indonesia creates massive impacts on the economy. The Light Rail Transit (LRT) of the greater Jakarta (Jabodebek) project has an estimated cost of more than 29 trillion rupiahs due to land acquisition and route planning. The urban transit development may impact to the price of property including residential, commercial and offices along the route. This research aims to determine variables affecting the price elasticity of property and the correlation to station proximity. Data mining through web scrapping was used to assess the degree of correlation between price elasticity and station location. The result shows that approximately 13% of commercial property was spread over a distance of 1 km from the LRT station. The closer a property to transit station, the more likely a price will be twice as cheap compared to those further away. The findings also show variables that highly contribute to property prices, including schools and hospitals, linked to proximity of some transit stations located in city center of Jakarta and building density.

An Analysis of Implicit Value of Property Characteristics in Residential Property Prices using a Hedonic Value Approach

“…In addition, MRT stations are mostly located near the city center, which provides accessibility to other public facilities. Nearly located residential properties to MRT stations reduce the cost of travel which induces higher property value (Berawi et al, 2018;Berawi et al, 2019). Based on the survey conducted by the Communication, Information, and Statistics Division of the DKI Jakarta Government in 2019, 76.83% of Jakarta citizens value MRT and Light Rail Transit (LRT) highly, which supports our hypothesis (Dinas Komunikasi Informasi dan Statistik, 2019).…”

An analysis of the determinants of office real estate price modelling in Nigeria: using a Delphi approach

“…The stance of these Nigerian researchers contradicts the global best practice where researchers have affirmed micro variables to be significant in price determination. Among these are those who affirm building age (Olszewski et al, 2018;Kołodziejczyk et al, 2020), location (Kopczewska and Lewandowska, 2018;Berawi et al, 2019;Tse-Hsiung and Perng, 2019), building type (Kangallı Uyar, 2020), vacancy rate (Kangallı Uyar, 2020) proximity to transportation facilities (Bera and Kangalli Uyar, 2019;Tse-Hsiung and Perng, 2019).…”

“…, 2018; Kołodziejczyk et al. , 2020), location (Kopczewska and Lewandowska, 2018; Berawi et al. , 2019; Tse-Hsiung and Perng, 2019), building type (Kangallı Uyar, 2020), vacancy rate (Kangallı Uyar, 2020) proximity to transportation facilities (Bera and Kangalli Uyar, 2019; Tse-Hsiung and Perng, 2019).…”

Land Value Capture as Financial Resource for Infrastructure Development in Palembang City

“…In quantitative research, researchers generally evaluated the LVC implementation throughout the world, such as London (Roukoni & Medda, 2012), China (Wu et al, 2018), and Hong Kong (Loo et al, 2018). Some went on to calculate and forecasting value that governments could capture from land value increment (Berawi et al, 2019;Falcocchio et al, 2018;Higgins, 2019;Sharma, 2018;Sharma & Newman, 2018;Xu et al, 2019). Qualitative research primarily evaluated the LVC implementation through document reviews (Budiati, 2020;Mathur, 2014Mathur, , 2015Mathur, , 2017Mathur, , 2019Yilmaz et al, 2015) and specifically, based on the general principle of public finance (Abelson, 2018;Gielen & Mualam, 2019;Roukoni & Medda, 2012;Zhao et al, 2010;Zhao & Larson, 2011).…”