Measuring the Impact of Light Rail Transit System (LRT) on Commercial Property Prices in Petaling Jaya, Selangor
Mengukur Impak Sistem Transit Aliran Ringan (LRT) Terhadap Harga Hartanah Komersil di Petaling Jaya, Selangor
DOI:
https://doi.org/10.37134/geografi.vol11.1.1.2023Keywords:
Light rail transit systems, commercial property, hedonic pricing model, geographically weighted regressionAbstract
Urban rail transit systems, such as light rail transit (LRT), play an important role in improving accessibility from one place to another. Therefore, real estate owners and researchers believe that light rail transit has a positive impact on land prices and, consequently, on real estate in the affected areas. Thus, this study aims to measure the impact of the LRT system on commercial property prices in Petaling Jaya, Selangor. To achieve this aim, the study uses a case study research design, focusing on the Kelana Jaya LRT system in Petaling Jaya. Linear trend line (LTL) analysis, polynomial trend line (PTL) analysis, hedonic pricing model (HPM), and geographically weighted regression model (GWR) were used to measure the impact. The results of the LTL and PTL analysis show that the impact of the LRT system on commercial property prices is positive at an observation distance of 400 meters from the nearest transit station. Additionally, the results of the hedonic pricing model show that the impact of the LRT system on commercial property prices is positive and significant at the 99% significance level. Furthermore, the results of the GWR analysis provide further interesting information about how commercial properties interact with the LRT system. However, the impact and magnitude of the LRT system's influence on commercial property prices are not consistent across all stations. The impact and magnitude of the LRT system's effect on commercial properties in Petaling Jaya, Selangor, are influenced by a variety of local factors. Therefore, the purpose of this study is not only to contribute to the body of knowledge but, more importantly, to explore the potential implementation of the land value capture policy as an alternative mechanism to finance the cost of construction, operation, and maintenance of the LRT system.
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