Search results

This 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.

A case study of the Sydney Metro City and Southwest (SMCSW) project in Sydney is used to illustrate passive value capture mechanisms.

Unlike 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.

Policymakers 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.

Previous 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.

The theoretical case for land value capture is well-known, but the effectiveness of affordable housing delivery as a capture mechanism is not so well-documented. Building on the earlier theoretical and empirical work of Whitehead (1991, 2007) and Crook and Whitehead (2002), the purpose of this paper is to consider the provision of affordable housing from a land value capture viewpoint, focusing on the process by which the amount of affordable housing is determined between landowners/developers on the one hand and local planning authorities on the other.

The paper adopts a mixed-mode approach for the data collection. Two surveys of local planning authorities were undertaken, together with a series of case study interviews.

The paper evaluates whether land value capture has been an effective mechanism for delivering affordable housing by focusing on three principal areas: first, the political agenda in relation to land value capture and the supply of affordable housing; second, the nature and motivation of the stakeholders involved in affordable housing decision-making; and third, the use of economic models as decision tools for determining the amount and type of affordable housing are negotiated.

The research provides some insight into the effectiveness of local authority affordable housing targets as a means of capturing the uplift in land value that results from the grant of planning permission.

Australia’s Future Tax System (2009) among its recommendations identified the need for realignment of tax revenue across the tiers of government in Australia, as well as the need to raise additional revenue from land-based taxes. In achieving these objectives, this paper aims to examine the revenues generated from land and how capital gains tax may be reconceptualised as a value capture tax resulting from the rapid urbanisation of Australia’s cities. The development of a theoretical framework realigns the emerging rationale of a value capture tax, as a means for revenue to be divested from central government in the form of capital gains, to sub-central government as a value capture tax.

A qualitative research methodology comprising grounded theory and phenomenological research is used in undertaking the review of tax revenue collection from state land tax, conveyance stamp duty, local government rating and Commonwealth capital gains tax. Grounded theory is applied for constant comparison of the data with the objectives of maximising similarities and differences in these revenues with an analytical construct as defined by Strauss and Corbin (1990, p. 61).

The paper finds that realigning revenue from land-based taxes against the principles of good tax design provides greater opportunity to raise additional revenue to fund public infrastructure while decentralising revenue from central government. It provides an alternate mechanism for revenue transfer from central to sub-central government while conceptually improving own source revenue from value capture taxation as a new revenue source.

The limitation of this paper is the ability to quantify the potential increase that would be generated in the form of value capture revenue. It is demonstrated in the paper that capital gains tax took over 15 years for revenue generation to crystallise, a factor that would likely occur in the potential introduction of a value capture tax for funding transport infrastructure.

The pathway to introducing a value capture tax is through re-innovating capital gains tax as a value capture tax directly hypothecated to funding transport infrastructure that results in the uplift in values of the surrounding property from which revenue is raised.

This paper provides a new approach in contributing to funding the capital outlay of public infrastructure in lieu of central government consolidated revenue allocated through the Commonwealth Grants Commission. It provides a much-needed approach to decentralising revenue from the Commonwealth to sub-central government in Australia which has one of the most centralised tax systems in the OECD.

Examines the valuation difficulties that have arisen as a result of the falls in rental value in the UK property market during the early part of the 1990s. Considers overage cases being caused by the rent passing being above rental value on a normal rent review pattern because of a letting on an abnormal review pattern. Comments on the straightforward case of a fall in rental value since the last rent revision. Concludes that the growth explicit model is a better and more consistent methodology for the market valuation of investment property.

This study aims to address the research gap about value in the holistic discourse of creative placemaking. It identifies and synthesises the often discounted social and environmental values of creative placemaking along with typically emphasised economic values.

This paper builds upon two research phases; first, a review and extraction of creative placemaking value indicators from relevant current urban, cultural and planning literature; and second, the identification of relevant, practice-based, value indicators through interviews with 23 placemaking experts including practitioners, urban planners, developers and place managers from the two largest cities of NSW, Australia; Sydney and Newcastle.

This study identifies three broad thematics for valuing creative placemaking along with several sub-categories of qualitative and quantitative indicators. These indicators reveal the holistic value of creative placemaking for its key stakeholders, including expert placemakers, designers, building developers, government and community groups. A key conclusion of the research is the need for tools that grasp the interconnected, and at times conflicting, nature of placemaking’s social, economic and environmental outcomes.

While a variety of value indicators exist to understand the need for ongoing resourcing of creative placemaking, stakeholders identified the limitations of current approaches to determine, represent and appraise the value of creative placemaking. The indicators of value proposed in this research consolidate and extend current discourse about the value of creative placemaking specifically. The indicators themselves have profound practical implications for how creative placemaking is conceived, executed and evaluated. Theoretically, the study builds on the deep relationships between values and practice in creative placemaking, as well as critiquing narrow forms of evaluation that entrench economic benefits over other outcomes.

This research aims to provide an insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance.

The methodology involved a mix of desk-based study, interviews and case studies. Interviews were held with financiers, policymakers, developers, investors, fund managers and academics. The specific case projects were Battersea Power Station Development in London; Leipziger Platz site in Berlin; and the Lammenschans site in the city of Leiden, The Netherlands.

The research found that there is growth in the blend of financial products used in real estate development within large-scale mixed-use projects. This new blend is set with greater equity financing, often from domestic and foreign consortiums generating institutional funds – alongside private debt financing – that utilise a mix of large-scale multi-bank finance.

The scale of the challenge in financing real estate development allied with capital budget constraints has meant that the appetite for innovative finance mechanisms has gained considerable momentum in practice and policy. This research investigates current examples in development finance and provides a discussion of the opinion of key multi-stakeholder participants in the individual cases, and trends more strategically at a broader level.

This detailed study of three major development sites and at a more broader strategic level is significant, in that it provides a better understanding of the differing blends of finance that are being used.

The purpose of this article is to support current efforts by policymakers to limit the value of implicit bank debt guarantees that they are perceived as providing. It does so by analyzing the determinants of the value of such guarantees and by proposing a framework for categorizing and analyzing the host of different financial regulatory reform measures recently adopted and proposed.

The starting point is the observation that public authorities have provided the guarantor-of-last-resort function in more explicit form as part of the financial safety net. This choice has inadvertently further entrenched the perception that bank debt benefits from an implicit guarantee and, in the meantime, policymakers have decided to limit the value of such guarantees. To support these efforts, the present articles use a valuation framework based on concepts of contingent claims analysis to model the value of insurance of risky bank debt when the sovereign providing the guarantee can itself be risky. This framework allows one to monitor any progress made in reducing the value of these guarantees. It is applied here to a measure of implicit external (mostly from the sovereign) support for the debt of a panel of 184 large worldwide banks headquartered in 23 countries for the period from 2007 to 2012.

Consistent with the implications of the conceptual model, the empirical evidence suggests that implicit bank debt support is higher, the lower the bank's stand-alone creditworthiness and the higher the sovereign's creditworthiness. The result is consistent with previous work that showed that the decline in the value of implicit bank debt guarantees most recently observed owes much to reduced strength of the sovereigns seen as providing the guarantees. Obviously, a more desirable way to limit the value of implicit bank debt guarantees is to foster the intrinsic strength of banks. Alternative categories of policy measures aim at withdrawing the guarantee function or charging for its use.

The author is not aware of any similar work using a rigid theoretical and empirical framework to structuring the policy discussion on bank regulatory reform.

The purpose of this paper is to consider the merits of using projects bonds to finance infrastructure investment projects and considers the pricing of such bonds and the level of risk premium demanded by the market.

The research used a mix of qualitative and quantitative methods with desk-based study and interviews. Interviews were held with policy makers, local authority staff, planners, developers, investors, fund managers and academics. Infrastructure bond data were obtained from the Bloomberg database on all project bonds issued in four Asian countries – Malaysia, China, Taiwan and India – over the period 2003-2014.

The analysis indicates investor appetite for project bonds and suggests that a risk premium of between 150 and 300 basis points over the comparable government bond is appropriate depending on the sector and the degree of government involvement in underwriting the issue.

The paper argues that the introduction of project bonds would be an important innovation, assisting the financing of infrastructure investment at a time when bank lending is likely to remain fragile. The current conditions in the sovereign debt market, where strong demand has forced down yields, has opened up the opportunity to introduce project bonds offering a higher yield to satisfy institutional investment demand for long term fixed income products.

The originality of this paper stems from the analysis of the merits of using projects bonds to finance infrastructure investment projects, the pricing of such bonds and the level of risk premium demanded by the market.

The research examines the impact of heavy rail transport infrastructure on residential property prices in Melbourne at different stages of project development using the Mernda Rail Extension Project as a case study.

A difference-in-difference approach is used to quantitatively measure the magnitude of change in the house price at different stages of rail transport infrastructure project development.

When controlling for a range of structural, neighbourhood, and locational attributes, the authors find that properties within 800 m from the proposed train station are 8.7% higher in value than those outside 800 m (but within 1,600 m). However, during the project's construction, the project's benefits in the form of house price appreciation are not fully realised. “Unrealised benefit” is attributed to the negative externalities of construction works and apprehensions associated with the project's shelving and time delays.

Depending on the availability of data on residential property transactions in the future, a spatial analysis of rail infrastructure's radius of catchment effect is needed.

Findings from this research are beneficial for policymakers concerned with transport and land use planning, property valuation for taxation and mortgage purposes.

This research contributes to the knowledge of the impact of the rail project on house prices in Melbourne. While there are earlier studies on the topic, there is limited understanding of this prime Australian city attractive to domestic and foreign investors.

The purpose of this paper is to provide a cost-effective foundation technique for the design of foundations of transmission towers, heavily loaded structures, etc.

Experimental model tests are conducted in a model test tank to find out the effect of length and diameter of geogrid encased granular pile anchors, the relative density of sand and the angle of inclination of the pile from the vertical on uplift behavior of granular pile anchors.

The uplift capacity of the geogrid encased granular pile anchor increased with increasing length and diameter of granular pile anchor. Further, increasing the relative density of surrounding soil increased uplift capacity of geogrid encased granular pile anchor system. Moreover, increasing the angle of inclination of loading also increased uplift capacity of whole system. Thus, the proposed system can be effectively used in field for further applications.

The paper is helpful for the engineers looking for cost-effective foundation techniques for heavily loaded structures.