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Abstract
The capitalization rate is an important factor and must be presented in order to valuing a property applying income approach and direct capitalization method. This paper attempt to measure the capitalization rate on residential sector in district of Mataram through the overall capitalization rate theory developed by the International Association of Assessment Officers. Measurements of central tendency and dispersion were conducted to find out early indications related to the characteristics and tendencies of the capitalization rate. In addition, regressivity and progressivity test was conducted through simple regression analysis and Spearman rank test correlation to determine the lease pattern. Utilizing purposive sampling as many as 70 samples were divided proportionally according to number of sub-district. This research showed that average capitalization rate in district is 4.39%, while average capitalization rate for each sub-district varied widely from 3.7% to 5.31%. Individually, the highest capitalization rate is 6.15% and the lowest is 3.33%. Higher capitalization rate indicated higher percentage return than lower capitalization rate. Regression and correlation analysis showed that capitalization rate tends to regressive against market price or there is a regressive relationship between capitalization rate and market price. The interesting result of this paper is a property with higher market price has lower percentage return than a property with lower market price, and vice versa.
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References
- Accetta, G.J., 1998, “Supporting Capitalization Rates”, The Appraisal Journal, Oct 1998: 371-374.
- AIREA, 1987, The Appraisal of Real Estate, American Institute of Real Estate, Appraisal, Chicago.
- Anderson, D.R., Sweeney, D.J. dan Willims, T.A., 1996, Statistics for Business and Economics, Six edition, West Publishing Company, USA.
- An, Xudong dan Deng,Yongheng, 2009, “A Stuctural Model for Capitalization Rate”, Real Estate Research Institut, February 2009: 1-24.
- Appraisal Institute, 2001, The Appraisal of Real Estate, 12th Edition, Appraisal Institute, Chicago.
- Argensio, J.D. dan Laurin, F., 2007, “The Real Estate Risk Premium: A Developed/Emerging Country Panel Data Analysis”, Real Estate Journal, December 2007:1-41.
- Direktorat Jenderal Pajak, 1994, “Undang-Undang Republik Indonesia No. 12 Tahun 1994 tentang Pajak Bumi dan Bangunan”, Ditjen Pajak, Jakarta.
- Gujarati, D.N., 2003, Basic Econometrics, 4th Edition, McGraw-Hill, Singapore Gujarati, D.N. dan Porter, D.C., 2009, Basic Econometrics, 5th Edition, McGraw-Hill, Singapore.
- IAAO, 1996, Property Assessment Appraisal, International Association of Assessment Officer, Chicago, Illionis.
- Lusht, K.M., 1997, Real Estate Valuation, Principles and Application, USA.
- Mooney, S.P., Vergin, T.L. dan Mortrude, S.J., 1998, “Why Capitalization Rates Of Single-Tenant Property Vary”, The Appraisal Journal, Oct 1998: 366-379.
- Simons, R., Arbel, Y., Choi, E. dan Shahrar, D.B., 2011, “Explaining the Variation in Residential Capitalization Rates Worldwide: A Preliminary Investigation”, The ERES Journal, June 2011: 1-10.
- Sivitanides, P.S., Southard, J., Torto, R.G. dan Wheaton, W.C., 2001, “The Determinants of Appraisal-Based Capitalization Rates”, Real Estate Finance Journal, March 2001: 1-27.
- Sivitanidou, R.C. dan Sivitanides, P.S., 1997, “Exploring Capitalization Rates Differentials Across Property Types”,. Real Estate Journal, March 1997: 1-11.
- Kantor Perwakilan NTB, Bank Indonesia, 2021, Laporan Perekonomian Provinsi Nusa Tenggara Barat, Februari 2020.
References
Accetta, G.J., 1998, “Supporting Capitalization Rates”, The Appraisal Journal, Oct 1998: 371-374.
AIREA, 1987, The Appraisal of Real Estate, American Institute of Real Estate, Appraisal, Chicago.
Anderson, D.R., Sweeney, D.J. dan Willims, T.A., 1996, Statistics for Business and Economics, Six edition, West Publishing Company, USA.
An, Xudong dan Deng,Yongheng, 2009, “A Stuctural Model for Capitalization Rate”, Real Estate Research Institut, February 2009: 1-24.
Appraisal Institute, 2001, The Appraisal of Real Estate, 12th Edition, Appraisal Institute, Chicago.
Argensio, J.D. dan Laurin, F., 2007, “The Real Estate Risk Premium: A Developed/Emerging Country Panel Data Analysis”, Real Estate Journal, December 2007:1-41.
Direktorat Jenderal Pajak, 1994, “Undang-Undang Republik Indonesia No. 12 Tahun 1994 tentang Pajak Bumi dan Bangunan”, Ditjen Pajak, Jakarta.
Gujarati, D.N., 2003, Basic Econometrics, 4th Edition, McGraw-Hill, Singapore Gujarati, D.N. dan Porter, D.C., 2009, Basic Econometrics, 5th Edition, McGraw-Hill, Singapore.
IAAO, 1996, Property Assessment Appraisal, International Association of Assessment Officer, Chicago, Illionis.
Lusht, K.M., 1997, Real Estate Valuation, Principles and Application, USA.
Mooney, S.P., Vergin, T.L. dan Mortrude, S.J., 1998, “Why Capitalization Rates Of Single-Tenant Property Vary”, The Appraisal Journal, Oct 1998: 366-379.
Simons, R., Arbel, Y., Choi, E. dan Shahrar, D.B., 2011, “Explaining the Variation in Residential Capitalization Rates Worldwide: A Preliminary Investigation”, The ERES Journal, June 2011: 1-10.
Sivitanides, P.S., Southard, J., Torto, R.G. dan Wheaton, W.C., 2001, “The Determinants of Appraisal-Based Capitalization Rates”, Real Estate Finance Journal, March 2001: 1-27.
Sivitanidou, R.C. dan Sivitanides, P.S., 1997, “Exploring Capitalization Rates Differentials Across Property Types”,. Real Estate Journal, March 1997: 1-11.
Kantor Perwakilan NTB, Bank Indonesia, 2021, Laporan Perekonomian Provinsi Nusa Tenggara Barat, Februari 2020.