Land-Price Dynamics Surrounding Large-Scale Land Development of Technopolis Gedebage, Bandung, Indonesia

Abstract

In spite of its potential value to governments, detailed information on how land prices vary spatially in a city is very lacking. Land price in the city, especially around the development activity, is not known. There are some considerable studies showing that investment in land development increases the land market price; however, only a few are found. One of them is about the impact of large-scale investment by Sumarecon in Gedebage Bandung, which is planning to develop “Technopolis”, as the second center of Bandung Municipality.This paper discusses the land-price dynamics around the Technopolis Gedebage Bandung, using information obtained from many sources including an interview with experienced brokers. Appraised prices were given for different types of residential plot distinguished by tenure, distance from the main road, and infrastructural provision. This research aims to explain the dynamics of the land price surrounding the large-scale land development. The dynamics of the land price are described by the median land price market growth using the Surfer DEM software. The data analysis in Technopolis Gedebage Bandung shows the relative importance of land location, infrastructural provision and tenure (land title) for dynamics of the land price. The examination of data makes it possible to test whether and where there has been a spiraling of land prices. This paper argues that the increasing recent price has been consistently greater in suburban plots than that in the inner city as a result of the massive demand of the large-scale land development project. The increasing price of land cannot be controlled; the market price is rising very quickly among other things due to the fact that Gedebage will become the technopolis area. This, however, can indirectly burden the lower-middle-class groups, such as they are displaced from their previous owned-land, and implicate on ever-decreasing income as the livelihood resources (such as farming and agriculture) are lost.