Landuseplan & Productmixed(How to Maximize Landvalue?)

Contribution to Studio Development

September 2005

Landuse-plan & Product-mixed

• Landuseplan divided the site in saleable and non saleable are.

• Saleable area is divided in high-value, middle-value and low-value area.

• Non-saleable area is divided in Infrastructure and most of social facilities.

• Non-saleable and saleable area is composed to maximize land value.

Key Factors Determining Development Concept

• External Determinants (uncontrollable): Government Policy & Regulation, Economic Condition, Natural Condition, Externalities, Demand, etc.

• Internal Determinants (controllable): Financial Condition, Human Resources, Corporate Culture, Design, Technical System, etc.

External and Internal Key-factors

• “External factors”: uncontrollable but some can be modified, some others change it self by the time.

• Developer should try to increase positive impacts and to reduce negative impacts of external factors.

• Identification of most possible “external condition”

• Landuseplan in particular or design in general is the most important internal key factor to maximize added value.

Where is the added value coming from?

• How to mixed the products? • How to put the product on the right

place/location?• Which product is to sell first, which is second, etc.• Which facilities should be built, where and when?• Which level of services should be provided to

support the development?

How to mixed the products?

• How to estimate the quantity and the composition of the products?

• How to select the right locations for the products?

• Elaborate different possibilities through alternative Land-use plans

Development Scenario (1)

• Qualitative Survey is needed to identify “most possible external condition”

• Strategy to face “worst condition” or to utilize “best condition” of externalities.

• Increasing of land-price is projected base on most possible external condition.

Development Scenario (2)

• The land-use plan is designed with “most possible external condition” as “point of departure”.

• The flexibility of landuse-plan is an important factor to anticipate changing of externalities.

Development Scenario (3)

• The best development scenario is base on balance between profit and risk.

• Profit can be increase by maximizing internal, controllable key factors and optimizing of external uncontrollable condition.

Strategy to Anticipate Changing of External (uncontrollable) Condition: Anticipate the changing of Government Policy &

Regulation. Anticipating strategy to face changing of economic

condition. Technical Risk Assessment to anticipate the changing of

natural condition. Observation the changing of all important external

factors. Provide Flexibility in technical and corporate planning

Optimizing Internal, controllable Condition to maximize profit

• Solid Financial Condition

• Good quality of Human Resources; innovative, creative

• Strong Corporate Culture

• Reliable Technical System, etc.

• Flexible Design

Relation of Saleable and Non- saleable Area

• There is a strong relationship between saleable area (areas/lots to sell or to rent) and non-saleable area (areas to built infrastructure, utilities and facilities) indicated with the increasing of landprice.

• How to estimate the right proportion between saleable and non saleable

• How to select the appropriate facilities • How to chose the right time to built the facilities?

Which should be there in the beginning of the development, which should follow?

The Right Proportion

Is needed between:

• Lots and ROW

• Commercial and social facilities

• Greens and built up area

• High, Middle and Low value

The Process (Housing Project)

Study on existing

conditions of Location

(technical, social-

cultural,etc)

Land-use Plan &

Development Scenario

DRAFT FINALOf

Development Concept

Final Develop

ment Concept

Owner’s Input (Development Framework)

Owner’s Input from Market

Analysis (Product Mixed)

Owner’s Input from Investment Analysis (Pre-FS)

Government’s Requirements

and Regulation

Comments from

Authority

Inputs from Engineering

Study

Discussion

Consultation

STAGE 1 STAGE 2 STAGE 3 STAGE 4

ALTERNATIVE ZONING PLAN

Phasing

Terms High-value

Middle-value

Low-value

No-Value

Short

Middle

Long

Flexible

Development Phase

Laboratorium for Urban Planning of Tarumanagara University

1st phase

2nd phase

3rd phase

Table of Landvalueplan

Location Land use

Area

(sqm)

Effective Non- Effective

Saleable

(gross)

Subtotal saleable

Net-saleable

Non-Saleable

Subtotal non saleable

Total Total dev area

Subtotal Eff. area

Subtotal non-eff area

Table of Land-use planGross Area Function Phase 1

(ha)

Phase 2

(ha)

Phase 3

(ha)

SubTotal

(ha)

Saleable Area: Housing

Commercial

Others

Non-Saleable: Infrastruktur Facilities

Greens

Others

Reserve

Subtot Subtot Subtot Total

0

100

200

300

400

500

600

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

pessimistic

optimistic

Landprice Assumption

Laboratorium for Urban Planning of Tarumanagara University

Land price/ sqm

preparation growth mature

assumption of land price increase, based on optimistic and pessimistic case

Prediction of Land PriceYear 1 Year 2 Year 3 Year 4 Year 5

Etc.

Housing:

H 1

H 2

H 3

Area sold

Preis

Commercial

C1

C2

C3