Highest and Best Use Analysis for an Apartment with Office Buildings or Shopping Centers in East Surabaya

Authors

  • Barca Hadi Juwono Petra Christian University
  • Timoticin Kwanda Petra Christian University
  • Njo Anastasia

DOI:

https://doi.org/10.9744/acesa.v2i2.9959

Keywords:

Salary, evaluation staff, human resource development, position, request.

Abstract

Surabaya is the capital of East Java and the center of community
activities. A developer has a plan to build a residential area in East Surabaya,
located on Dharma Husada Indah Barat III road with an area of 7.123 m2. After
considering many aspects, there are two alternative ideas that really attract the
attention of this developer, namely, apartments with office buildings or apartments
with shopping centers. The best decision results of the two alternatives can be
analyzed through the highest and best use (HBU) analysis method. The HBU must
fulfill four criteria, that is, legally permissible, physically possible, financially
feasible, and maximally productive. Of the two scenarios, the one that meets the
HBU aspect is an apartment with office buildings, with the annual internal rate of
return of 99%, the net present value of Rp. 563.448.604.512,- with payback period
60,46 months and discounted payback period 60,8 months.

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Published

2020-03-17

Issue

Vol. 2 No. 2 (2019): Advances in Civil Engineering and Sustainable Architecture

Section

Full Paper Articles

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