The effectiveness of passive land value capture mechanisms in funding infrastructure

IF 1.6 Q3 BUSINESS, FINANCE Journal of Property Investment & Finance Pub Date : 2020-11-12 DOI:10.1108/jpif-07-2020-0084
Chyi Lin Lee, Martin Locke
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引用次数: 7

Abstract

PurposeThis study examines the effectiveness of passive value capture mechanisms as an effective form of mechanisms in funding infrastructure from an Australian perspective The lukewarm response of active value capture mechanisms such as betterment levies in Australia is also discussed Design/methodology/approachA case study of the Sydney Metro City and Southwest (SMCSW) project in Sydney is used to illustrate passive value capture mechanisms FindingsUnlike many developed countries, passive value capture mechanisms have been adopted in Australia This approach is an effective form of value capture mechanisms to capture the value uplift to offset the total development cost of the SMCSW project However, this approach is highly sensitive to property transaction activities that could be affected by the general economic conditions and unprecedented events such as the COVID-19 pandemic Further, there is a widespread discussion of the efficiency of land tax in New South Wales (NSW) in capturing all properties subject to the value uplift Consequently, a shift towards a broad-based land tax is recommended in which it would provide a more efficient way of infrastructure funding Practical implicationsPolicymakers should consider a broad-based land tax for residential and commercial properties in order to improve the efficiency of passive value capture mechanisms This also highlights property valuers should play a greater role in the development of broad-based land tax system Originality/valuePrevious studies have extensively demonstrated property value impacts of transit investments;very little research assesses the growth of value capture funding mechanisms, particularly passive value capture mechanisms Specifically, this paper is the first paper to assess the effectiveness of passive value capture mechanisms
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被动土地价值获取机制在资助基础设施方面的有效性
目的本研究从澳大利亚的角度考察了被动价值捕获机制作为一种有效的基础设施融资机制的有效性。还讨论了澳大利亚的积极价值捕获机制(如改良税)的冷淡反应为了说明被动的价值捕获机制发现与许多发达国家不同,澳大利亚采用了被动的价值捕捉机制。这种方法是价值捕捉机制的一种有效形式,用于捕捉价值提升,以抵消SMCSW项目的总开发成本。然而,这种方法对可能受总体经济状况和新冠肺炎疫情等前所未有的事件影响的房地产交易活动高度敏感。此外,人们对新南威尔士州(NSW)土地税在捕获所有价值上涨的房地产方面的效率进行了广泛讨论,建议转向基础广泛的土地税,这将为基础设施融资提供一种更有效的方式。实际含义决策者应考虑对住宅和商业地产征收基础广泛的土地税,以提高被动价值捕获机制的效率。这也强调了房地产估价师应在发展中发挥更大的作用基础广泛的土地税制度的独创性/价值先前的研究广泛证明了过境投资对房地产价值的影响;很少有研究评估价值捕获资金机制的增长,特别是被动价值捕获机制。具体而言,本文是第一篇评估被动价值捕获机理有效性的论文
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来源期刊
CiteScore
3.50
自引率
23.10%
发文量
33
期刊介绍: Fully refereed papers on practice and methodology in the UK, continental Western Europe, emerging markets of Eastern Europe, China, Australasia, Africa and the USA, in the following areas: ■Academic papers on the latest research, thinking and developments ■Law reports assessing new legislation ■Market data for a comprehensive review of current research ■Practice papers - a forum for the exchange of ideas and experiences
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