Land-use plan & Product-mixed (How to Maximize Landvalue?)

1. Land-use plan & Product-mixed(How to Maximize Landvalue?) Contribution to Studio Development Dr.-Ing. Jo Santoso September 2005 (actualized on March 3, 2006)

2. Landuse-plan, Landvalue-plan & Product-mixed • Land-use plan 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, Social Facilities, Green and other restricted Zone.

3. Landuse-plan, Landvalue-plan & Product-mixed • Land-use plan is composed to maximize land value. • The landvalue-plan is the basic to allocate the proposed product-mixed. • Land-use plan is the basic to establish development plan

4. 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.

5. 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” as point of departure • Land-use plan in particular or design in general is the most important internal key factor to maximize added value. • Land-value plan is the base to design land-use plan.

6. Where is the added value coming from? • How to mixed the products? • How to put which product on the right place/site? • 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?

7. 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? • Method: Elaborate different possibilities through alternative Land-use plans.

9. 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.

10. 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.

11. 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.

12. 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

13. Optimizing Controllable (internal) Condition to maximize profit • Solid Financial Condition • Good quality of Human Resources; innovative, creative • Strong Corporate Culture • Reliable Technical System, etc. • Flexible Design

14. 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?

15. The Right Proportion Is needed between: • Lots and ROW • Commercial and social facilities • Greens and built up area • High, Middle and Low value

16. Phasing

17. Development Phase 2nd phase 1st phase 3rd phase Laboratorium for Urban Planning of Tarumanagara University

18. Table of Land-valueplan

19. Table of Land-use plan

20. Prediction of Land Price Laboratorium for Urban Planning of Tarumanagara University

21. Land-price Assumption Land price/ sqm preparation growth mature assumption of land price increase, based on optimistic and pessimistic case Laboratorium for Urban Planning of Tarumanagara University

22. Study, Physical Planning &Design (a)Landuse-plan >distribution of development area in different functions/effective &non-effective area. (b) Land value-plan >division the area in high-middle-low and no values of land/saleable &non-saleable area. (c)Development phases/stages > determines the timing of construction and of the product delivery > determines the development stages (d) Other studies (marketstudy, environmental study,etc.)

23. The Process (Housing Project) Owner’s Input from Market Analysis (Product Mixed/ Land-valueplan) Owner’s Input (Development Framework) Owner’s Input from Investment Analysis (Pre-FS) Discussion Study on existing conditions of Location (technical, social-cultural,etc) Land-use Plan & Development Scenario ALTERNATIVE ZONING PLAN DRAFT FINAL Of Development Concept Final Development Concept Consultation Government’s Requirements and Regulation Comments from Authority Inputs from Engineering Study STAGE 1 STAGE 2 STAGE 3 STAGE 4 Laboratorium for Urban Planning of Tarumanagara University

24. Development Phase 2nd phase 1st phase 3rd phase Laboratorium for Urban Planning of Tarumanagara University