Landowners and stakeholders

Oct 13, 2025 by thesweetdesigns.com 3 views

Optimizing Vacant Land Around Kualanamu Airport: Highest & Best Use Analysis

Introduction

The area around Kualanamu International Airport in Deli Serdang Regency, North Sumatra, has immense potential for development. However, the existence of large vacant land and its suboptimal utilization is a pressing issue. To address this problem, the Highest and Best Use (HBU) analysis method can be a viable solution. This method helps determine the most optimal type of land use, taking into account physical, legal, and financial aspects.

Understanding Highest and Best Use (HBU) Analysis

HBU analysis is a systematic approach to identifying the most suitable land use, considering various factors such as physical characteristics, legal restrictions, and financial viability. This method involves evaluating different land use alternatives, such as housing, warehousing, and hotels, to determine the most optimal type of land use.

Methodology

This study employed a quantitative descriptive analysis and utilized a scoring analysis tool to determine the most optimal type of land use. A Likert scale was used to assess each alternative land use, considering factors such as physical feasibility, legal compliance, and financial viability.

Physical Aspect Analysis

From the physical aspect, the three alternative land uses (housing, warehousing, and hotels) were found to be feasible. However, it is essential to note that physical feasibility is only one aspect of the HBU analysis.

Legal Aspect Analysis

From the legal aspect, land use for housing and warehousing was found to be permitted, while use as a hotel was not permitted. This highlights the importance of considering legal restrictions when evaluating land use alternatives.

Financial Analysis

Financial analysis revealed that land use as housing has the highest financial value, meeting the four feasibility criteria: Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), and the smallest payback period. The value of land if developed as housing reached Rp. 400,792,- per square meter, representing an increase of 802% compared to the market value of vacant land at the study site, which was Rp. 50,000 per square meter.

Results and Discussion

The results of this study are in line with the development of the property market around Kualanamu International Airport, where the construction of medium-luxurious housing is increasing. This indicates that land use as housing is the most optimal and profitable choice in the region.

Benefits of HBU Analysis

The utilization of vacant land around Kualanamu Airport by the HBU method can produce various benefits, including:

Increasing Land Value

The development of vacant land into housing can significantly increase land value, providing a substantial return on investment for landowners.

Opening Jobs

Housing development will create new jobs, improve the local economy, and contribute to regional growth.

Improving the Quality of Life

Optimal land use will provide benefits for the surrounding community, such as providing decent and affordable housing.

Supporting Regional Development

The development of the area around the airport will encourage economic growth and infrastructure development in the region.

Conclusion

This study provides recommendations to landowners and stakeholders in the area around Kualanamu Airport to develop vacant land as housing. Through the HBU method, land use can be optimized, providing optimal benefits for landowners, the community, and regional development.

Recommendations

Based on the findings of this study, the following recommendations are made:

Landowners and stakeholders: Develop vacant land as housing to maximize land value and create new job opportunities.
Local government: Implement policies and regulations that support the development of housing in the area around Kualanamu Airport.
Private sector: Invest in housing development projects in the area around Kualanamu Airport to capitalize on the growing demand for medium-luxurious housing.

Limitations and Future Research Directions

This study has several limitations, including:

Limited scope: The study focused on a specific area around Kualanamu Airport and may not be generalizable to other locations.
Methodological limitations: The study relied on a quantitative descriptive analysis and may not capture the complexities of land use decision-making.

Future research directions include:

Case studies: Conduct case studies of successful housing development projects in the area around Kualanamu Airport to identify best practices and lessons learned.
Comparative analysis: Conduct a comparative analysis of different land use alternatives, such as warehousing and hotels, to determine their feasibility and financial viability.
Policy analysis: Analyze the impact of policies and regulations on land use decision-making in the area around Kualanamu Airport.
Frequently Asked Questions (FAQs) About Highest and Best Use (HBU) Analysis

Introduction

Highest and Best Use (HBU) analysis is a systematic approach to identifying the most suitable land use, considering various factors such as physical characteristics, legal restrictions, and financial viability. In this article, we will address some of the most frequently asked questions about HBU analysis.

Q1: What is Highest and Best Use (HBU) analysis?

A1: HBU analysis is a method used to determine the most optimal type of land use, taking into account physical, legal, and financial aspects. It involves evaluating different land use alternatives to identify the most suitable use of a property.

Q2: What are the benefits of HBU analysis?

A2: The benefits of HBU analysis include:

Increased land value: HBU analysis can help identify the most valuable use of a property, increasing its value and potential return on investment.
Improved financial performance: By identifying the most profitable land use, HBU analysis can help property owners and investors make informed decisions about their investments.
Enhanced community benefits: HBU analysis can help identify land uses that benefit the surrounding community, such as affordable housing or community facilities.

Q3: What are the steps involved in HBU analysis?

A3: The steps involved in HBU analysis include:

Data collection: Gathering data about the property, including its physical characteristics, legal restrictions, and financial performance.
Analysis: Evaluating the data to identify the most optimal land use.
Recommendations: Providing recommendations for the most suitable land use based on the analysis.

Q4: What are the limitations of HBU analysis?

A4: The limitations of HBU analysis include:

Limited scope: HBU analysis may not capture the complexities of land use decision-making, particularly in areas with multiple stakeholders or conflicting interests.
Methodological limitations: HBU analysis relies on data and analysis, which may be subject to errors or biases.
Regulatory limitations: HBU analysis may be limited by regulatory restrictions or zoning laws that restrict the use of a property.

Q5: How can HBU analysis be applied in practice?

A5: HBU analysis can be applied in practice in a variety of ways, including:

Property development: HBU analysis can help property developers identify the most profitable land use for a property.
Investment analysis: HBU analysis can help investors evaluate the potential return on investment for a property.
Community planning: HBU analysis can help community planners identify land uses that benefit the surrounding community.

Q6: What are the future directions for HBU analysis?

A6: The future directions for HBU analysis include:

Integration with other analysis methods: HBU analysis may be integrated with other analysis methods, such as financial analysis or environmental impact assessment.
Use of new technologies: HBU analysis may be enhanced by the use of new technologies, such as geographic information systems (GIS) or data analytics.
Increased focus on sustainability: HBU analysis may place increased emphasis on sustainable land use practices and environmental impact assessment.

Conclusion

Highest and Best Use (HBU) analysis is a powerful tool for identifying the most optimal land use, considering various factors such as physical characteristics, legal restrictions, and financial viability. By understanding the benefits, steps, limitations, and applications of HBU analysis, property owners, investors, and community planners can make informed decisions about land use and development.