Defining Gap between Housing Land Value and the Facilities Provision in Urban Housing Development by Private Developers in Malang City, Indonesia

Abstract

One of Indonesian government strategy in fulfilling the national housing target is by improving private developer's roles in housing provision. Due to the provision of housing facilities, obligated by Indonesian government for every private developer since 1987, the practical implementation shows opposite circumstances for the private residential area. This research aims at describing conflict between the fulfilment of urban housing facilities and the housing land price in Malang City. Hence, comparison between the existed land prices to the availability of facilities is conducted to identify the gap. Since the price-contour is resulted by the land price mapping, this paper compares between the price and the existed facilities in order to show the practical gaps between the prices and the facilities. Finally, this research indicates: 1). The residential areas with unfulfilled facilities are located at the urban area with high prices, 2) Theefficiency of housing prices becomes the main motivation of the developers in building the facilities, without much consideration on environmental quality of the residential areas.