Research Paper
Year: 2020 | Month: February | Volume: 7 | Issue: 2 | Pages: 41-46
The Highest and Best Use Analysis in PT Cukat Trengginas Arians Land (Case Study: Vacant Land on Flamboyan Street Medan)
Ali Sakti Hamonangan Nasution1, Sukaria Sinulingga2, Hilma Tamiami2
1Postgraduate Students at Universitas Sumatera Utara, Indonesia
2Postgraduate Lecturer at Universitas Sumatera Utara, Indonesia
Corresponding Author: Ali Sakti Hamonangan Nasution
ABSTRACT
Rapid urban growth in the Medan city has caused land needs to increase. But, this is not in line with the increasingly limited availability of land. To improve efficiency on these limitations, optimalitation is needed. This optimalitation is in the form of land use by establishing a property that can provide benefits so that the market value of land becomes high. One of the vacant land that has not been utilized is the vacant land owned by PT Cukat Trengginas Arians which is on the Flamboyan Raya street with an area of 16000 m2. Analysis of the highest and best use in land valuation is very important to consider a product development plan that is most suitable and most profitable built on it. Determining the value of land depends on land use, for that it is necessary to do the analysis of the highest and best use that is physically possible, legally permissible, financially feasible and has maximum productivity. The results study show that the three alternative land use that is modern markets, shopping areas and commercial housing have passed the physical, legal and financial aspects of the test. In the physical feasibility test, this vacant land is located in a strategic area because it is close to the regional trade and service centers in Medan City, has easy accessibility as well as a complete, adequate and in good condition. The legal aspect test results show that based on the applicable regulations in the Medan City spatial plan, the object of study is located in the trade and service zone, so that the object of study can be developed as commercial housing area, shopping area and markets. Based on financial analysis the NPV value for the modern market is Rp3,838,318,000, for the shopping area Rp7,385,765,000, and commercial housing Rp4,434,981,000,. The NPV for the three alternative land uses is more than zero (positive) so that the shopping area is the most optimal development to be developed in the study object because it provides the highest land value Rp3,849,589/m2, this value is higher when compared to the value of land in an empty state that is equal to Rp2,000,000/m2.
Keywords: Highest and Best Use, Land, Physical, Legal, Financial
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