Spatial-based socio-economic model for assessing the impact of urban riverfront development

Abstract

Urban Riverfront Development (URD) is an urban infrastructure that provides tremendous socio-economic impacts within riverfront area. However, the URD assessment practice in Malaysia have predominantly focused on social and environmental aspects, leaving behind socio-economic aspects of property market as a driver for economic growth. Due to lack of academic research, the socio-economic indicators that are linked to URD property market remain ambiguous. Apart from the qualitative nature of assessing the impacts, spatial-based impact assessment is also not extensively practised in Malaysia despite the evidential visual impacts. Hence, there is a need to develop an impact assessment model which can spatially display the socio-economic impacts of URD. These issues have motivated a quantitative study with the following four objectives:1) to ascertain socio-economic indicators of URD; 2) to determine the spatial measurements of socio-economic indicators for URD; 3) to develop spatial-based socio-economic model for URD; and 4) to assess socio-economic impacts of URD using the developed spatial-based socio-economic model. From the piloted questionnaires, eight socio-economic indicators and fortythree parameters were identified to form the basis for a large-scale survey in which questionnaires were distributed to property building owners along the URD area to assess the socio-economic impacts of URD. Melaka River in Melaka was selected as a case study for this research. Descriptive analysis and Relative Importance Index (RII) were used to rank the socio-economic indicators and parameters as well as spatial measurements. Findings were also analysed via PLS-SEM which revealed seven socio-economic indicators and seventeen parameters which were then accepted for the model development. Using the Importance-Performance Matrix Analysis (IPMA), the identified spatial-based parameters were examined using spatial data analysis and Spatial Multi-criteria Analysis (SMCA) which generated the non-spatial and spatial weights. URD was also assessed using the developed model to observe spatial distribution of the socio-economic impacts. Finally, transaction data were utilised to analyse property market within riverfront properties to reveal the socioeconomic impacts. The results show that there is market value increment for residential, commercial and industrial properties within a 300-meter radius from the URD which indicates a positive socio-economic impact. Hence, this model could assist real estate practitioners and enhance the impact assessment practice for URD in Malaysia.